It is important to understand the basic charges that may be included in your electric bill, in addition to understanding the rate that you may be quoted by a Retail Electric Provider (REP). The charges that you may typically find on your electric bill are comprised of four (4) parts.
1) The REP purchases power from the wholesale market for you and this cost is referred to as the Energy Charge and is reflected in ¢’s per kWh in the quote you receive from a Retail Electric Provider.
2) The REP typically will Pass Through Charges to you from your local TDSP (wires company). These Transmission and Distribution Charges are regulated by the PUCT and cover the costs for maintaining the poles, wires, transformers, meters, etc. in order to ensure a reliable electric transmission and distribution system for you.
3) The REP also typically charges a Customer Charge. This is a flat monthly fee to cover administrative costs such as billing, maintaining a customer call center, etc.
4) The REP must also charge for all applicable Taxes such as federal, state and local taxes that must be collected and forwarded to the appropriate governmental agency.
When you receive a ¢’s per kWh rate quote from a REP, it is typically only the Energy Charge. So when you try to compare this to the ¢’s per kWh of your current Affiliated REP’s bill, it may become very confusing and you may not be comparing apples to apples. Your Affiliated REP’s bill may have a Fuel Adjustment charge and a myriad of other charges. So be sure to ask the REP to calculate an estimated ¢’s per kWh including all their charges, not just the Energy Charge. Apples to Apples is the only way to know if you are getting a better deal that will result in cost savings to you.
It is really simpler than you think. Not only do you now have the Power to Choose your Retail Electric Provider, you have the Power to Ask for a side-by-side comparison showing what your total bill is with your current electric provider compared to the proposed rate from a competing electric provider. When comparing the bills, the Transmission and Distribution Charges and the Applicable Taxes will be calculated the same way. The potential cost savings will be found in comparing the Energy Charges and the Customer Charge.
If you would like to compare TriEagle Energy’s competitive rate with your current electric provider, we would be happy to have one of our experienced staff prepare a comparative proposal. Just contact us at 281-681-2381; 877-93-EAGLE [32453] (toll-free) or email us at customercare@trieagleenergy. |
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