Shopping for electricity in deregulated Texas can be frustrating. You see an advertisement for a low rate—say, "8.5¢ per kWh"—only to find your first monthly utility bill averages out to 14.1¢ per kWh.
This rate markup isn't a mistake. It is because Texas retail electricity providers (REPs) present their pricing in different ways. Some show partial rates that exclude delivery fees and monthly base charges, while others bundle everything together.
To make an honest comparison, you must look at all-inclusive pricing. In this guide, we will break down what all-inclusive pricing means, compare bundled and unbundled rate structures, and show you how to find the true cost of power using GetElectricity.
What is All-Inclusive Pricing?
An all-inclusive rate represents the total price you pay per kilowatt-hour (kWh), combining all the individual charges that appear on your monthly bill:
All-Inclusive Rate = Total Bill Amount / Total kWh Consumed
A true all-inclusive price includes:
- Energy Charge: The rate you pay for the raw electricity supplied by your provider.
- TDU Delivery Charges: Regulated pass-through fees charged by your local transmission and distribution utility (e.g., Oncor, CenterPoint) to deliver electricity and maintain power lines.
- Monthly Base Charges: Flat monthly service fees charged by the provider (typically $0 to $10).
- State Fees and Taxes: The Public Utility Commission of Texas (PUC) assessment and local taxes.
Bundled vs. Unbundled Pricing Structures
In Texas, all electricity plans include energy charges and TDU charges, but providers package them differently:
1. Bundled Plans
In a bundled plan, the provider combines the energy charge and TDU charges into a single, comprehensive rate per kWh. For example, if a provider quotes an all-inclusive 14.5¢ per kWh, that number already covers the utility delivery costs.
Note: Bundled plans are popular because they simplify bill estimation, but they can sometimes obscure fluctuations in regulated TDU rates.
2. Unbundled Plans
In an unbundled plan (often called a "pass-through" plan), the provider separates the energy rate from the TDU fees. On your Electricity Facts Label (EFL), you will see:
- A flat energy charge (e.g., 9.2¢ per kWh).
- The local TDU pass-through charges (e.g., CenterPoint’s fee of 4.5¢ per kWh plus a $4.39 monthly base fee).
At the end of the month, the provider adds these values together to calculate your bill.
The Danger of Non-Inclusive Advertisements
The biggest pitfall on public shopping portals is comparing an unbundled energy-only rate against a bundled all-inclusive rate.
If a provider advertises an unbundled rate of 8.5¢ per kWh without mentioning TDU fees, it looks cheaper than a bundled rate of 13.0¢ per kWh. However, once you add the standard TDU pass-through fee (typically 4.0¢ to 5.5¢ per kWh), the unbundled rate actually climbs to 13.5¢ or 14.0¢ per kWh.
Without comparing the all-in pricing, you risk signing up for a plan that is more expensive than it appeared.
The 60-Second Audit for Any Advertised Rate
You do not need a spreadsheet to catch a non-inclusive advertisement—just the all-inclusive formula and two missing numbers.
Step 1: Find what the ad excludes. If the quoted rate is energy-only, the two hidden components are the TDU pass-through charge (typically 4.0¢ to 5.5¢ per kWh) and the TDU's flat monthly base fee.
Step 2: Add them back. Take the advertised energy rate, add the TDU per-kWh charge, then divide the flat monthly fee by your expected usage and add that too. An 8.5¢ energy rate plus a 5.2¢ TDU charge is already 13.7¢—before the flat fee adds its share.
Step 3: Sanity-check against the formula. At 1,000 kWh, a $4.39 flat fee adds about 0.44¢ per kWh, bringing the true rate to roughly 14.1¢ per kWh—exactly the gap between the $85.00 assumed bill and the $141.39 real one.
Any rate that cannot survive this three-step audit is not a rate—it is a marketing number. The Electricity Facts Label for every plan shows the real average prices at 500, 1,000, and 2,000 kWh, which is why the EFL, not the ad, is the comparison document that matters.
Visualizing the Cost: Advertised vs. True Cost
Here is how the numbers break down when a provider advertises an unbundled rate compared to the true all-inclusive cost you will actually see on your bill:
Discover Your True Rate with GetElectricity
At GetElectricity, we believe in complete transparency. We eliminate rate gimmicks and hidden fees:
- No Partial Quotes: Every rate displayed on our platform is a complete, all-inclusive rate based on your selected usage profile.
- TDU Pass-Through Calculations: We automatically calculate and display the exact TDU charges for your service area, adding them to the energy charge to show your true all-in cost.
- EFL Auditing: We review the fine print of every plan to ensure that base charges, usage-tier credits, and delivery fees are correctly represented.
See the real prices in your area. Find a transparent, all-inclusive fixed plan on GetElectricity today.
See True All-Inclusive Rates on GetElectricity
Every trap in this guide — base charges, usage tiers, and delivery fees — disappears when a platform shows you the complete price up front.
GetElectricity connects directly to your Smart Meter Texas data to build your real 12-month usage profile, then simulates hundreds of active plans across Houston, Dallas, Fort Worth, and Plano, exposing tiered pricing gimmicks and hidden delivery surcharges before you enroll.
Enter your ZIP code on GetElectricity to see the true all-inclusive rate you will actually pay.
Frequently Asked Questions
What is an all-inclusive electricity rate?
An all-inclusive rate is the total price you pay per kilowatt-hour — your total bill amount divided by total kWh consumed. A true all-inclusive price bundles the energy charge, TDU delivery charges from your local utility (e.g., Oncor, CenterPoint), monthly base charges (typically $0 to $10), and state fees and taxes such as the PUC assessment.
Why is my actual bill rate higher than the advertised rate?
Many providers advertise unbundled energy-only rates that exclude TDU delivery fees. An advertised 8.5¢ per kWh rate, once you add the standard TDU pass-through fee of 4.0¢ to 5.5¢ per kWh, actually climbs to 13.5¢ or 14.0¢ per kWh. In the worked example in this guide, an $85.00 advertised bill at 1,000 kWh becomes a $141.39 actual bill — an effective all-inclusive rate of 14.1¢ per kWh.
What is the difference between a bundled and an unbundled plan?
In a bundled plan, the provider combines the energy charge and TDU delivery charges into a single comprehensive rate per kWh. In an unbundled (pass-through) plan, the Electricity Facts Label lists a flat energy charge separately from the local TDU pass-through charges, and the provider adds them together at the end of the month to calculate your bill.
Related reading: Commercial accounts rarely see bundled teaser rates at all — our commercial electricity rates guide explains how business quotes are structured differently from residential EFLs.
Related reading: Whether your plan is bundled or unbundled, the bill still itemizes every piece. Our walkthrough of every charge on your Texas electric bill maps each line item back to the energy charge or the TDU.