While every REP has a different billing format, all have certain charges in common. The most common are:

• Base Charge – a flat fee applied each month regardless of the amount of kilowatt-hours (kWh) used. This charge is often waived if the customer uses more than 1000 kWh in a billing cycle
• Energy Charge – charge equal to the electricity rate multiplied by kilowatt-hours (kWh) consumed.  This is the profit that the REP makes.  Because you cannot change the TDU delivery charges, this is where the savings are found.  This is the competitive part of the market.
• TDU Delivery Charges (Pass Through Charges) – charges to cover the cost of moving electricity from the generation plant to your home. These are actually charged to the REP, which transfers them to the customer.

If you want more information about what a particular charge is, click on the following link for an explanation of additional charges:

Texas Public Utility Commission