Commercial electricity in Texas operates under different rules and pricing mechanics than residential power. While residential rates are structured around simple tiers or flat averages, commercial pricing depends heavily on your monthly volume, peak demand profile, and transmission voltage.
Many business owners make the mistake of evaluating their bill by dividing the total cost by the total kilowatt-hours (kWh) consumed, and then comparing that number directly to advertised energy rates. This incorrect comparison leads to frustration, as delivery charges can inflate your final per-kWh cost by up to 50%.
In this guide, we establish realistic benchmarks for commercial energy rates in Texas, explain the difference between energy charges and delivery charges, and help you determine if your business is paying a competitive rate.
Texas Commercial Rate Benchmarks
Below is an interactive breakdown detailing energy-only supply rates and estimated all-in rates (including TDU delivery fees) across different business size tiers:
Energy-Only Rates vs. All-In Costs
When a provider quotes a commercial rate, they are quoting the energy-only rate. Your actual, real-world cost is the all-in rate, which includes pass-through charges from your local TDU.
- Energy Charge (Retailer): The competitive rate you lock in with your chosen provider. This covers the actual generation of electricity.
- TDU Delivery Charge (Utility): Regulated by the PUCT and paid to the utility company that maintains the physical grid (e.g., Oncor or CenterPoint). This charge is identical regardless of which provider you choose.
Depending on your TDU territory, delivery fees add an additional 3.0¢ to 5.5¢ per kWh to your billing baseline.
How to Audit Your Business Electricity Rate
To see if your current contract is competitive, perform this quick 5-minute audit:
- Calculate Your Effective Energy Rate: Take your total monthly energy charge (excluding TDU fees) and divide it by your total kWh consumption.
- Determine Your Usage Tier: Look at your last 12 bills to find your average monthly consumption.
- Check the Spread: Compare your effective energy rate to our benchmarks. If your rate exceeds the benchmark by more than 1.5¢ per kWh, you could save thousands by switching.
- Evaluate Expiration Dates: If your commercial contract expires within the next 90 days, begin shopping immediately to secure rates during seasonal dips in the spring or fall.
Secure Better Commercial Rates with GetElectricity
We help Texas businesses optimize their energy procurement:
- Custom Mid-Market Curation: We analyze your commercial load factors to match your business with providers that do not charge high demand penalties.
- TDU Transparency: We separate delivery costs from energy charges, showing you the true all-in cost before you sign.
- Forward Contract Locking: We track wholesale markets, letting you lock in future rates up to a year before your current contract expires to avoid summer grid spikes.
Verify your commercial rate. Compare business electricity plans on GetElectricity today.