How to read a commercial electricity bill (Texas)

The bill at a glance.

Most business electricity bills group their charges into the same few parts. The names differ by supplier and utility, so match each line on your bill to one of these.

Start with usage.

Find the kilowatt-hours (kWh) used in the billing period and the dates the period covers. Usage moves with opening hours, equipment, weather and the season, so one month rarely tells the whole story. A bill that shows several months of usage history is more useful than a single total.

Note the service address and the meter or account number next to the usage. A business with several locations can have a separate meter, contract and end date at each one.

Supply: the part you shop for.

The supply charge is the cost of the electricity itself, bought under your supply contract. It is usually your supply rate multiplied by your usage. Your contract sets that rate, its term and whether it is fixed or variable.

This is the only part of the bill a new supply contract changes. When you compare offers, compare the supply rate on the same usage and start date, and check what the quoted rate includes. Our quote comparison checklist walks through it.

Delivery: your utility’s part.

Delivery charges pay your local utility for getting electricity to your door: the poles and wires, meter reading and running the system. They are regulated, and they apply whichever supplier you choose.

Changing supplier does not change who delivers your power. Your utility still maintains the lines and handles outages. A lower supply rate lowers the supply part of the bill only; delivery stays with the utility’s rates.

Demand and capacity charges.

Some business bills include charges based on your highest draw of power at one time, measured in kilowatts (kW), rather than your total usage in kWh. Depending on your utility and rate class, these appear as demand or capacity charges. Many small accounts do not see them at all.

A kitchen that starts ovens, fryers and air conditioning together can set a higher peak than one that staggers them, even with the same total usage. Your utility’s rate schedule explains how the peak is measured for your account. Reducing peak demand can help manage these charges.

Taxes and fees.

The last group is taxes set by your state or city and regulated assessment fees. They vary by location and suppliers do not set them. They follow your usage and bill total, so they move when the rest of the bill moves.

Before you ask for a review.

• Every page of a recent bill, including the usage and charge details, not just the summary page.
• The service address and meter or account number for each location.
• Your current supply contract or renewal notice, with its end date.
• Any planned changes to opening hours, equipment or occupancy.

No bill to hand? Start with your business ZIP and email and add the bill later through the private link we send. Firm quotes need the complete bill and a check of your service address. If your contract ends soon, our renewal guide covers the dates to check first.