Understanding All-Inclusive Electricity Pricing in Texas

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:

$$\text{All-Inclusive Rate} = \frac{\text{Total Bill Amount}}{\text{Total kWh Consumed}}$$

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.

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.