Reading your electric bill can sometimes feel like deciphering a secret code, especially when you have a commercial account and start using large amounts of electricity for the first time. If you've ever scratched your head wondering why your electric bill has 2 pages of additional charges and line items, you're not alone. 
 
Here's a quick breakdown of some of the most common charges you'll encounter on your business’ Oncor bill (we’ll have a part 2 going over the less common charges next week):
 
 
**1.	Base Charge: **Think of this as the entrance fee you pay every month to have access to the utility grid, some companies charge you $0 but on average it’s between $4.95 - $19.95. Whether you use electricity or not, this fixed fee is charged every month to allow you the privilege of using whatever electric company you’ve signed up with.
 
**2.	Energy Charge:** This is where your actual consumption comes into play. The energy charge is based on how many units, or kilowatt-hours (kWh), of electricity you've used. On most plans this is a fixed rate, so no matter how much or how little you use, the amount you pay for every kWh will be the same. This is the rate you see advertised on promotions and websites, it doesn’t include any of the other required charges on electric bill.
 
**3.	Demand Charge:** Large commercial users usually encounter this, your home electric bill won’t have this item. It's a fee based on the peak electricity consumption in a given period, if you turn on all your electronics at the same time once a month and the rest of the month the building is deserted you’ll still have a high demand charge. It's like a speed limit; even if you go over it for just a moment, you'll be charged for that peak rate. The utility company will look at the most amount of electricity you’ve needed at one time and charge you for making sure their grid is always capable of being able to deliver what you need.
 
**4.	TDU Delivery Charge:** TDU stands for Transmission and Distribution Utility. This fee covers the cost of delivering electricity from power plants to homes and businesses. It pays for the maintenance and operation of power lines, transformers, and other infrastructure. Simply put, it’s shipping and handling for your electricity. 
 
**5.	Average Price Per kWh You Paid:** This gives you an average of what you're actually paying for each unit of electricity consumed, not just the rate you signed up for. To get this number, divide the total amount due by the number of kWh used. This is the most accurate way of determining what you’re really being charged per kWh versus what you signed up for.
 
 
Understanding your bill is the first step to managing your electricity consumption and potentially lowering your costs. So the next time you receive your bill, you'll be ready to decipher it!

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Understanding your bill is the first step to managing your electricity consumption and potentially lowering your costs. So the next time you receive your bill, you'll be ready to decipher it!

Reading Your Electric Bill

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