Billing/Rates

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  1. I've seen in the news that there are really high power prices recently. Will Oncor customers end up paying more because of these power outages?

    Oncor’s rates are only for the delivery of electricity – typically approximately 25 to 30 percent of the average customer's bill – and not the electricity itself. Since Oncor doesn’t operate any power plants and doesn’t charge for the actual energy, no generation costs are included in Oncor rates. The actual energy charge is included in the total price you pay your Retail Electric Provider (REP).

    It’s important to understand how the Texas market works to better understand what you are paying for in your electric rates and, unfortunately, there have been many news stories and blogs posting incorrect information that could be confusing to customers. Most Texas customers are on contracts with their REPs. If you are on a contract, those high wholesale prices you’ve seen in the news may not affect you because your price is locked in for the duration of your contract.

    So then, who pays? In most cases, it's the REPs. The balancing energy market, where those high prices were reported, is designed for the REPS to purchase small amounts of their total electricity at the last minute to meet the demands of their customers. The better they plan, the less they have to purchase on the balancing market so those high prices serve as an incentive for REPs to closely estimate their actual need.

    Additionally, you only pay for the power you consume, and when your service is interrupted, you’re not using any. For tips to help conserve energy, please visit www.TakeALoadOffTexas.com. To compare retail offers available in your area and choose the plan best suited to your needs, visit the Public Utility Commission's site, www.powertochoose.org.

    If you have an advanced meter, you can see your usage data every day by logging on to www.smartmetertexas.com.

    -Charlie B., Ask Oncor Expert

  2. Why is my electric bill so high? How can I lower it?

    Your electric bill is based on the amount of electricity you use and the rate charged by your Retail Electric Provider (REP), which includes Oncor’s costs to deliver the electricity to your home or business.

    One way to reduce your electric bill is to reduce your usage. Some useful tips are:

    • During the summer keep your thermostat on 78 degrees or above.
    • During the winter keep your thermostat on 68 degrees or below.
    • In the summer, keep your window coverings closed during the hottest part of the day.
    • Turn off lights whenever you leave a room.
    • Many electronics continue to use a small amount of power when they are turned off. These "phantom" loads occur in most electronics or appliances that use electricity, such as cell phone chargers and other plug-in electronics. Phantom loads can be avoided by unplugging the device from the wall outlet or utilizing a power strip to cut off all power to the appliance.

    These are just a few tips you can use, however you can also visit www.takealoadofftexas.com for more of Oncor’s energy efficiency tips.

    Another way to reduce your electric bill is to evaluate your REP’s price or rate. You can visit www.powertochoose.com for more information on electric choice and a comparison of currently available rate plans.

    -Mike M., Ask Oncor Manager

  3. How much of my electric bill goes to Oncor?

    In absolute dollar terms, Oncor’s portion of the average homeowner’s electric bill does not depend upon the Retail Electric Provider (REP) you have chosen. However, since different REPs charge different prices based upon their particular plans (for example, more or less renewable energy content, month-to-month versus longer term, etc.), the percentage of your total bill that goes to Oncor will vary – ranging from about 25 to 33 percent. The remainder of the bill goes to the REP.

    -Steve R., Oncor Rates Expert

  4. What are Oncor’s rates? How are they determined? Who approves?

    Oncor’s rates can be viewed on Oncor’s Web site. Click here to view. Oncor’s rates are set by the Public Utility Commission of Texas (PUCT). The PUCT sets Oncor’s rates after a careful examination of Oncor’s investments in poles, wires and other equipment needed to serve you and the other costs of doing business (payroll, taxes, etc). In a few, limited instances, the city council where you live may also approve a portion of Oncor’s rates.

    -Steve R., Oncor Rates Expert

  5. I am currently paying 14 cents for electricity with Oncor. Can I get a better rate somewhere else?

    First, let me clarify that Oncor delivers electricity and builds and maintains power lines, but Oncor does not sell electricity to you nor do we send you a bill. Think of Oncor like Fedex or UPS. We just deliver. You actually buy power from a Retail Electric Provider, or REP and that is whom you are paying the 14 cent rate. Your REP in turn pays a small portion of that to Oncor to cover the electricity delivery.

    With a wide variety of electricity products and plans available in the marketplace, you may find a plan that provides you with significant savings or provides more certainty or flexibility than your current plan. You may also be interested in information about which electricity products use primarily renewable energy. Some REPs also have other value-added services like air conditioning maintenance, rewards programs or other customer service benefits. However, switching may not be for you. You can find a list of questions to ask yourself to help determine which REP and plan are right for you at www.powertochoose.org. Note that some REPs and plans, like the one you may currently have, may have an early termination fee or penalty.

    Once you've decided which company and offer are right for you, switching is simple. Just contact the REP you’ve chosen and tell them you'd like to switch, or sign up on their Web site. They’ll send you a “Terms of Service” agreement, which is your new service contract. Review it carefully because, after you receive it, you'll only have three business days to cancel without penalty, if your Terms of Service provides for a penalty. You will also receive a switch notification notice in the mail telling you that the switch request has been received and processed and identifying the REP that initiated the switch along with the phone numbers for both the current and new REP.

    -Marty S., Oncor Retail Electric Providers Expert

  6. I want to switch my Retail Electric Provider, but am afraid I'll make a bad decision. Can Oncor recommend another one, so I know I am selecting a reputable company?

    Because Texas’ electric market is competitive, it gives customers the power to pick their Retail Electric Provider or REP (the company you pay your bill to) and their plan. Customers get the same reliable delivery from Oncor no matter what REP they pick. Think of Oncor like Fedex or UPS. We just deliver the electricity, but you buy it from an REP.

    Different REPs and plans are appropriate for different customers. You may pick one REP and plan, while a friend may pick another one. But it doesn’t mean that either is better or worse than the other. You should pick the REP and electric plan that works best for you.

    If considering switching, there are some things to consider, like what kind of penalty you may have to pay if under contract with your current REP. With a wide variety of electricity products and plans available in the marketplace, you may find a plan that provides you with significant savings or provides more certainty or flexibility than your current plan. You may also be interested in information about which electricity products use primarily renewable energy. Some REPs also have other value-added services like air conditioning maintenance, rewards programs or other customer service benefits. However, switching may not be for you. You can find a list of questions to ask yourself to help determine which REP and plan are right for you, as well as a list of REPs and plans available in your area, at www.powertochoose.org.

    Once you've decided which company and offer are right for you, switching is simple. Just contact the REP you’ve chosen and tell them you'd like to switch, or sign up on their Web site. They’ll send you a “Terms of Service” agreement, which is your new service contract. Review it carefully because, after you receive it, you'll only have three business days to cancel without penalty, if your Terms of Service provides for a penalty. You will also receive a switch notification notice in the mail telling you that the switch request has been received and processed and identifying the REP that initiated the switch along with the phone numbers for both the current and new REP.

    -Marty S., Oncor Retail Electric Providers Expert

  7. How come electricity rates seem to go up in the summer?

    Oncor’s electric delivery rates do not change in the summer; however, your bill may rise in summer due to higher consumption. Oncor’s rates are a small portion of a customer’s electric bill. The majority of your electric bill comes from your Retail Electric Provider’s (or REP, the company you pay your electric bill to) charges based on your consumption. During hot Texas summers, consumption rises as most people are using their air conditioners more than they do during milder times of the year, so most people do see higher bills during the summer months.

    That same increase in demand for electricity also has an impact on the prices offered by some REPs. Some REPs offer pricing plans that are set based on the price of natural gas while others simply offer plans that follow the overall market price of electricity. Natural gas is used to generate a significant amount of electricity in Texas so any changes in natural gas prices will impact the price of electricity. Demand for natural gas increases during the summer months which will usually cause the price to also increase. You see the same phenomenon with gasoline. As soon as school lets out and people begin their summer vacations, gasoline prices increase as a result of increased demand. Of course, commodity prices are highly volatile, and this explanation is not an absolute rule — but it is a good rule of thumb.

    If you’re experiencing high bills in the summertime, you may benefit from taking energy efficiency measures to reduce your usage. During the summer, keep your thermostat on 78 degrees or above and keep your window coverings closed during the hottest part of the day. Visit www.takealoadofftexas.com for more of Oncor’s energy efficiency tips. And don’t forget to check the price you’re paying for electricity on your bill and compare that to the prices available at www.powertochoose.org. If you feel you're paying too much with your current plan, consider changing electricity providers.

    -Steve R., Oncor Rates Expert

  8. During which hours of the day are electric rates the highest?

    In general, wholesale electricity prices are highest when all of the expensive peaking generating units are operated in order to meet the maximum demand for electricity. This usually occurs during the summer months of June to September and on weekdays from 12 to 8 p.m., when a large number of people are using electricity at once. There are other times when prices may spike due to electric demand or generating capacity.

    There are several Retail Electric Providers (REPs) that provide time-of-use plans, which change cost per kilowatt-hour during on-peak (when electricity is more expensive due to higher demand) or off-peak (when demand is less and so electricity would be less expensive) times.

    Most REP plans are based on long-term wholesale contracts and are calculated as an average applicable to all consumption. Most of these plans will offer one price per kWh, no matter what time of day electricity is used. All retail plans offered in your area can be found at www.powertochoose.org, a website operated by the Public Utility Commission of Texas. The website will list the type of plan, costs and other useful information, like if the plan supports renewable energy.

    -Steve R., Oncor Rates Expert

  9. Once I have disputed what I consider unusually high consumption with my Retail Electric Provider and have been advised by them that no adjustments will be made made, how do I then dispute these charges with Oncor?

    Oncor invoices your Retail Electric Provider (REP) for kilowatt-hour consumption measured by the meter and the PUC-approved (the Public Utility Commission of Texas) delivery charges based on this consumption. Your REP then calculates your retail electric bill based on the measured kWh consumption and the specific plan you have with the REP. You can dispute the kWh consumption measured by Oncor’s electric meter through your REP or by contacting Oncor directly at Ask Oncor - 1.888.875.6279.

    -Mike M., Ask Oncor Manager

  10. How do I find out what tax rate I should be paying for a residential home? My REP keeps telling me that you control this, not them.

    First, let me clarify that Oncor delivers electricity and builds and maintains power lines, but Oncor does not sell electricity to you nor do we send you a bill. Think of Oncor like Fedex or UPS. We just deliver. You actually buy power from a Retail Electric Provider, or REP.

    Oncor does not affect your sales tax. Sales tax is collected by your REP in accordance with the total sales tax rate in effect for your location. The REP remits the tax proceeds to the appropriate taxing authorities. You can look up your total tax rate by visiting Texas Comptroller’s Office website and entering in your address. Oncor cannot affect your tax rate.

    As for Oncor’s portion of the average homeowner’s electric bill, while it does not depend upon the REP you have chosen, different REPs charge different prices based upon their particular plans (for example, more or less renewable energy content, month-to-month versus longer term, etc.), so the percentage of your total bill that goes to Oncor will vary – ranging from about 25 to 33 percent. Oncor’s rates are set by the Public Utility Commission of Texas (PUC). The PUC sets Oncor’s rates after a careful examination of Oncor’s investments in poles, wires and other equipment needed to serve you and the other costs of doing business (payroll, taxes, etc). In a few, limited instances, the city council where you live approves a portion of Oncor’s rates. To view Oncor’s rates, click here.

    The remainder of the bill goes to your REP. Because of deregulation of the Texas electricity market, consumers can choose which company they want to buy their electricity from. If you feel you are paying too much or want to see other options for plans or REPs in your area, visit Power to Choose, a website run by the PUC. With a wide variety of electricity products and plans available in the marketplace, you may find a plan that provides you with significant savings or provides more certainty or flexibility than your current plan. You may also be interested in information about which electricity products use primarily renewable energy. Some REPs also have other value-added services like air conditioning maintenance, rewards programs or other customer service benefits. However, switching may not be for you. You can find a list of questions to ask yourself to help determine which REP and plan are right for you at the Power to Choose website. Note that some REPs and plans, like the one you may currently have, may have an early termination fee or penalty.

    -Marty S., Oncor Retail Electric Providers Expert

  11. What is the demand charge on my business account electricity bill? What is demand?

    Demand is the rate at which electric energy is used at any instant or averaged over any designated period of time and is measured in kilowatts (kW). The demand kW is measured by the electric meter as the highest average demand in any 15-minute period during the month. This is the amount of electric load required by the customer’s electric equipment operating at any given time. Transmission and distribution utilities must have sufficient electric capacity such as properly sized transformers, service wires and conductors to meet customers kW demand. The demand kW is recorded for billing the demand charge each month and then reset on the bill cycle date. A customer’s 10 kW demand operating for one hour equals 10 kWh, which is the accumulative kWh reading on the meter.

    The demand charge is a billing mechanism used to recover the cost of providing transmission and distribution service to non-residential customers with a maximum load of greater than 10 kW (i.e., demand for electricity in kilo-Watts or kW). Since Oncor’s transmission and distribution systems are sized for the maximum load of the customers using the systems, the cost driver for providing transmission and distribution service is demand. In order to better align the costs of building and operating those systems with a customer’s use of the system, a demand charge is applied to the maximum demand (kW) that is recorded on a customer’s meter during the month. A minimum demand provision may be applied for 12 months in order to level out the recovery of the fixed costs of the transmission and distribution system necessary to serve a customer’s maximum or peak demand. The minimum demand provision is called a demand ratchet. All transmission and distribution utilities in Texas apply an 80 percent demand ratchet provision to a customer’s peak demand. For example, if a non-residential customer registers a peak demand of 20 kW in a month, for the next 11 months the minimum demand used for billing purposes is 80 percent of 20 kW or 16 kW, assuming that customer does not exceed 16 kW during the next 11 months. If the customer registers 30 kW, the minimum kW for billing purposes becomes 80 percent of 30 kW or 24 kW for the next 11 months. A ratchet is not applied to certain Seasonal Agricultural customers or customers whose demand is less than 20 kW but greater than 10 kW.

    View Sections 6.1.1.1.2 - .5 of Oncor’s Tariff for Retail Delivery Service describing the delivery charges for non-residential delivery service invoiced to the customer’s retail electric provider for more information on demand charges.

    -Mike M., Oncor Demand Expert

  12. If my electric bill is too high due to the summer heat, can I pay it out over time?

    First, let me clarify that Oncor delivers electricity and builds and maintains power lines, but Oncor does not sell electricity to you nor do we send you a bill. Think of Oncor like Fedex or UPS. We just deliver. You actually buy power from a Retail Electric Provider, or REP. So, if you have questions regarding payment on your account you should contact your REP. Assistance programs are sometimes available through your REP or the State.

    If you’re experiencing high bills in the summertime, you may benefit from taking energy efficiency measures to reduce your usage. During the summer, keep your thermostat on 78 degrees or above and keep your window coverings closed during the hottest part of the day. Visit the Take a Load Off, Texas website for more of Oncor’s energy efficiency tips. And don’t forget to check the price you’re paying for electricity on your bill and compare that to the prices available at the Public Utility Commission of Texas website, Power to Choose. If you’re paying too much, change electricity providers.

    -Marty S., Oncor Customer Relations Expert

  13. What is the $0.91 surcharge on my electric bill? I called my retailer, but they said it is an Oncor charge and to ask you. This is in addition to the $2.19 advanced meter surcharge.

    The $0.91 per month surcharge is the Energy Efficiency Cost Recovery Factor (EECRF) for a residential customer. This surcharge was approved by the Public Utility Commission of Texas (PUC) to fund Oncor’s energy efficiency programs as part of a statewide effort to reduce energy consumption and demand. The PUC oversees these programs and establishes the rules and requirements for administration by Oncor and other utilities to meet the State’s energy efficiency goals.

    EECRF charges are not related to charges for Oncor’s advanced meter. Oncor’s current EECRF surcharge for residential customers is $0.91 per month, which became effective Dec. 30, 2010.

    For information on how you can utilize Oncor’s energy efficiency programs, visit Oncor's Take a Load Off, Texas website.

    -Price R., Oncor Energy Efficiency Expert

  14. If I switch retailers, resulting in two bills from each REP that aren't a full billing cycle, will I still have to pay the full amount for the advanced meter charge on both?

    Oncor schedules and works a switch in Retail Electric Providers based upon information contained in the transaction sent to Oncor by your new REP. A standard switch will be worked within seven business days of the date received by Oncor. If you would like to specify a date for your switch, self-selected switches are worked by Oncor on the date specified in the transaction, provided a minimum of three business days notice has been provided. There is a $3.70 charge for working self-selected switches. There is no charge for standard switches.

    If a switch results in a bill that is for less than 28 days, the non-consumption charges, such as the customer charge, advanced meter surcharge and other similar charges, will be prorated based upon the number of actual days in the billing period. For example, if a switch occurred resulting in a customer bill for only seven days of service, the customer’s non-kWh-based charges, like the $2.19 advanced meter surcharge, would be prorated. In that case, the advanced meter surcharge for the shorter, 7-day billing cycle would be only $0.51 (calculations: seven divided by 30 days, multiplied by the $2.19 meter monthly surcharge, equals $0.51).

    -Marty S., Oncor Customer/REP Relations Expert