A commercial electricity bill in Texas typically has three big buckets: REP charges (energy you bought from the retail provider), TDU charges (delivery — what the wires utility charges to move it), and taxes/surcharges (the state, ERCOT, and PUCT take their cut).
Updated May 2026Enri Zhulati2 min read
Enri Zhulati2 min read205 words
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REPcharges
Energy charge (per-kWh × usage), monthly base/customer charge, ancillary services pass-through (ERCOT operating reserves), congestion management. Energy is the biggest line and the only fully negotiable component.
TDUcharges
Delivery charge per kWh (the wires utility's rate), customer charge (fixed monthly), demand charge if applicable, transmission cost recovery. TDU charges are tariff-set — same regardless of which REP you pick.
Taxesand surcharges
Texas state sales tax (varies by use case — manufacturing has exemptions), miscellaneous gross receipts tax, PUC assessment fee, ERCOT system administration fee. These pass through unchanged regardless of REP.
The Bottom Line
A commercial electricity bill in Texas typically has three big buckets: REP charges (energy you bought from the retail provider), TDU charges (delivery — what the wires utility charges to move it), and taxes/surcharges (the state, ERCOT, and PUCT take their cut).
Only the REP's energy charge and any margin built into ancillary pass-throughs. TDU charges and taxes are tariff-set and identical across REPs. About 50-65% of a typical commercial bill is the negotiable REP portion.
Why does my bill amount swing month-to-month?
Demand charges (a single 15-minute peak sets the month), seasonal usage variation, weather-driven HVAC load, and tariff adjustments (some pass-throughs reset quarterly). Compare year-over-year, not month-over-month, for trend analysis.
Editorial Standards
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Independently researched. Every claim is verified against primary sources (PUCT, ERCOT, EFLs).
No paid placement. Rankings are never influenced by advertising or referral compensation.
Reviewed by Enri Zhulati, Consumer Advocate. Plan data is pulled live from the electricrates.org API on every build and cross-checked against the EFL each REP publishes.
Enri knows the regulations, the fine print, and the tricks some retail electricity providers use. He's spent nearly a decade learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. He writes the guides that show you what they're hiding — his goal is to help Texans avoid the traps and find plans that actually save money.
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