Get Ahead This Summer: A Guide To Understanding Your Texas Electric Bill

Get Ahead This Summer: A Guide To Understanding Your Texas Electric Bill

June 26, 2023
Shawn Cornett

For many Texans, understanding their electric bill can feel like navigating a maze. The seemingly complex terminology and fluctuating charges can leave you scratching your head.

On top of this, homeowners are having to deal with rising electricity costs. While inflation has cooled somewhat, the typical power bill in the U.S. this summer is still set to be around 2% higher than last year.

If you are interested in reducing your average electric bill in Texas in summer, this blog post is for you. Here, we will share information on how you can understand the different components of a typical Texas electric bill. We'll also highlight why Ambit Energy and its range of featured, fixed, and variable electric plans can help you save this summer.

Understanding Your Texas Electric Bill

Let's start by breaking down the different elements of a Texas electric bill. Understanding this will empower you to take control of your energy usage and costs.

Billing Structure

To comprehend your electric bill, it's crucial to understand the billing structure. Here in Texas, most residential electricity plans utilize a deregulated market, where customers can choose their Retail Electric Provider (REP).

The charges on your bill consist of various components. These include the cost of electricity, delivery charges, and taxes.

Electricity Charges

The cost of electricity is typically the most prominent element on your bill. It reflects the actual energy you consumed during the billing period, measured in kilowatt-hours (kWh).

The electricity rate is usually expressed in cents per kWh and varies depending on your plan and REP. Understanding your usage pattern can help you identify opportunities to conserve energy and reduce costs.

Delivery Charges

Delivery charges cover the cost of transmitting electricity from power plants to your home. It also covers the cost of maintaining the distribution infrastructure.

These charges include the transmission and distribution charges, which are set by utility companies. The delivery charges may be fixed or based on your usage, and they appear separately on your bill.

Taxes and Fees

Your electric bill will also include various taxes and fees imposed by federal, state, and local governments. These charges are typically calculated as a percentage of your total bill and include:

  • Sales tax
  • Gross receipts tax
  • Other regulatory fees

While you have little control over these charges, being aware of them can help you better understand the total cost of electricity.

Understanding Usage Data

Many electric bills also provide detailed usage data, such as daily or hourly consumption. Monitoring this data can provide valuable insights into your energy usage patterns. For example, you can identify peak consumption periods and adjust your habits accordingly.

By utilizing this information, you can make informed decisions to conserve energy. These include adjusting thermostat settings or using energy-efficient appliances.

Discover the Best Electric Plans in Texas

Now that you better understand the breakdown of an electricity bill, it's time to highlight the very best plans you can choose from in Texas. Here at Ambit Energy, we offer a range of electric plans, meaning that everyone can find a plan that fits their needs perfectly.

Summer Break

Summer is right around the corner. As we have noted in the introduction, electric bills are expected to be even higher this summer than last. Not when you choose our Summer Break plan, however!

This incredible plan delivered our lowest electricity rate when you need it most. Enjoy a 50% discount on your electricity rate for the peak usage months of June through September. This plan is an excellent solution to avoid unexpected spikes in your vacation expenses resulting from heightened electricity consumption during the summer.

What's more, this plan offers a fixed rate, eliminating any concerns about fluctuating rates.

Free & Clear Nights

For environmentally conscious and energy-efficient individuals who can adjust their high-energy activities to nighttime hours, this electricity plan holds great appeal. It becomes an optimal choice if you are someone who prefers nocturnal productivity, running your appliances during off-peak hours.

It's also a great option for people who have an electric plug-in car. Just imagine the prospect of charging your EV for free every single night!

Ultimate Perks

Would you like to earn rewards just for paying your electricity bill? Well, you can with our Ultimate Perks plan. Earn Reward Dollars that can be redeemed at your favorite restaurants, entertainment spots, retailers, and more.

The best part is that these Reward Dollars never expire. That gives you the freedom to accumulate them over time for those significant purchases you've been eyeing.

Other Plans

We have a host of other fixed and variable plans available. Our fixed plans include the Lone Star Classic and Secure Savings. Our available variable rate is known as the Lone Star Flex.

Note that the Lone Star Flex is best for people who need month-to-month flexibility (such as a property manager who is fixing up a property for a short period). Generally, it's best to opt for a featured or fixed plan.

Understanding the Average Electric Bill in Texas in Summer

Understanding your Texas electric bill doesn't have to be a daunting task. Armed with the above knowledge, you can make smart choices that help you to reduce your home's energy bill this summer (and moving forward in general).

We recommend that you, as a Texas homeowner, partner with Ambit Energy this summer for competitive rates and friendly service. To get started, check out our available rates today. We're here to lower your average electric bill in Texas in summer!

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