Off-Peak: How to Read and Optimize Your Electricity Bill

Dear BKV Energy Community,

As summer draws near, we want to empower you with two important bits of knowledge:1. How to understand your electric bill2. How to reduce your summer electric bill Understanding the charges on your bill is the first step towards optimizing energy consumption behavior and saving money. Read on to learn the “what” and “why” of charges on BKV Energy bills and discover tips to reduce your summer bills.

Understanding Your Bill: The Charges Explained

1. TDU Pass-Through Charges: Regardless of which retail electricity provider (REP) you choose, the utility is responsible for delivering electricity to your home. This charge covers grid maintenance and operation costs to ensure electricity reaches your home. REPs do not keep any of this money and pass it directly to the utility.

2. Energy Charge: This is the core of your electric bill, representing the cost of the electricity you consumed during the billing period. It’s calculated based on the kilowatt-hours (kWh) of electricity used.

3. Miscellaneous Gross Receipts Tax Reimbursement: This charge is specific to Texas and some other states, where electricity providers are taxed on their gross receipts from customers in certain cities. This tax cost is then passed on to consumers as a reimbursement charge on their electric bills.

4. PUC Assessment: The Public Utility Commission of Texas (PUCT) assesses a fee on all electric sales, which is used to fund the commission’s regulatory operations and activities. This fee is a small percentage of your bill. 5. Sales Tax: Applied in accordance with Texas state and local tax laws.

Most Impactful Tips to Reduce Your Summer Bills

According to the Energy Information Administration, the biggest energy consumers during summer in a typical Texas household are heating and cooling, water heating, appliances and electronics, and lighting.

Heating and cooling: 53% of your bill
Water heating: 20% of your bill
Appliances and electronics: 20.5% of your bill
Lighting: 6.5% of your bill

With this in mind, here are a few actions to significantly reduce your energy consumption.

1. Adjust your thermostat. When summer heat arrives, set the thermostat to 78 and rely on ceiling fans to stay cool. Setting the thermostat to 70 or lower during summer is a surefire way to receive an enormous bill.

2. Take shorter, cooler showers.

3. Unplug unused appliances, or use a power strip. Electronics continue to consume electricity even when they are off.

4. Turn off the lights when you leave a room and rely on sunlight when you can. Switch to LED bulbs that use 70-90% less energy and last 25x longer than incandescent bulbs.

Looking for more ways to decrease your summer energy spending? Check out this article: 100 Tips to Reduce Your Electric Bill

Written by Graham Lumley

Graham Lumley, Digital Marketing Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 8 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.