How to Run an Electricity Audit for Your Texas Business

Studies estimate that roughly 15% to 20% of commercial utility statements contain billing discrepancies or calculation errors.

However, for most Texas business owners, the largest source of electricity overspending is not a simple math error on their invoice. It is paying an uncompetitive, out-of-market energy rate.

Businesses that have allowed their contract to automatically renew or have not evaluated the market in two or more years are frequently paying 15% to 30% more than necessary for their power.

In this guide, we will explain the difference between a rate audit and a physical energy audit, outline the three areas where hidden fees hide on your commercial statement, and show you how to perform a 5-minute rate audit using GetElectricity.

Rate Audit vs. Physical Energy Audit

Many managers confuse these two processes:

Physical Energy Audit: An on-site engineer inspects your facility’s physical equipment (HVAC systems, insulation depth, LED retrofits, and smart thermostats) to identify operational energy waste. This costs $500 to $5,000 and takes weeks to compile.
Electricity Rate Audit: A desktop comparison of your current contract rate against the active market rates available for your specific usage profile and location. This costs nothing and takes five minutes.

While physical upgrades are valuable for long-term reduction, rate audits represent the fastest, zero-cost way to reduce operating expenses. Dropping a rate from 12.8¢ per kWh to 7.9¢ per kWh on a monthly usage of 15,000 kWh saves $735 per month ($8,820 annually) instantly, with no physical changes or capital investment required.

Three Places Hidden Charges Hide on Commercial Bills

When conducting your rate audit, examine these three areas on your monthly statement:

1. TDU Pass-Through Rates

Your transmission and distribution utility (TDU)—like Oncor or CenterPoint—charges regulated fees to deliver power. These rates are updated twice per year, on March 1 and September 1. Some retail providers do not adjust their billing parameters in sync with these updates, resulting in outdated, inflated charges being passed through to your bill. Compare your bill line items against your original contract's Electricity Facts Label (EFL).

2. Peak Demand Calculations

For businesses with peak demand above 10 kW or 25 kW, TDU delivery charges are driven by your highest 15-minute peak usage window (measured in kW), not just your total consumption (kWh). If your business had a single unusual operational day where multiple heavy machines started simultaneously, your billable demand value will spike, raising your costs for the entire month.

3. Surcharges Not Disclosed on Your EFL

Review your invoice for "administrative fees," "regulatory recovery fees," or "minimum usage penalties." Under PUCT rules, all recurring charges must be disclosed on your EFL. If your provider has added unlisted surcharges, you have grounds to dispute the bill.

Visualizing the Savings: A Rate Audit Case Study

Here is a side-by-side comparison of a business's monthly costs before and after running a rate audit and switching off an out-of-contract holdover rate:

How to Audit Your Business Rate in 5 Minutes

To run a rate audit for your business:

Locate Your Core Rate: Find the raw "Energy Charge" per kWh on your bill. If your provider bills a combined rate, find your "All-In Average Rate" by dividing your total bill cost (excluding taxes) by your monthly kWh.
Query the Market: Enter your business's ZIP code and average monthly usage on GetElectricity.
Compare and Calculate: Compare your current rate against the lowest fixed commercial rates shown. Calculate your yearly savings:

$$\text{Annual Savings} = (\text{Current Rate} - \text{Best Available Rate}) \times \text{Monthly Usage (kWh)} \times 12$$

Streamline Commercial Audits with GetElectricity

Auditing commercial utility accounts manually is time-consuming, especially for businesses with multiple meters or locations. GetElectricity automates this process:

Automatic Interval Pulls: We securely pull your historical interval data to determine your exact load factor.
EFL Discrepancy Audits: We cross-reference your current bill lines against your active EFL parameters to verify TDU pass-through compliance.
Competing Bid Procurement: We submit your electricity profile to our network of commercial providers, compiling competing proposals into a single, transparent rate audit document.

Uncover the hidden savings in your utility overhead. Request a free business rate audit from GetElectricity today.