Texas Electricity Rates: Ambit Energy’s Bundled Rate vs. Unbundled

Do you know how much you are paying for electricity? If the answer is “yes,” how sure are you?

Many top electricity providers in Texas will advertise a certain rate, but many times that might not be the actual rate you end up paying. Why? In Texas residential rates are either “bundled” or “unbundled.” The company that owns the delivery equipment, such as Oncor in North Texas, charges a fee, which will appear on your bill. This fee is either included (bundled) or not included (unbundled) in the rate.

Many providers only tell you the unbundled rate, which of course makes it difficult to calculate what your bill will be depending on your electricity usage. For example, if TXU shows a rate of 7 cents per kwhr, but the Oncor delivery charge is listed on the bill as $60, that is a unbundled rate. If you use 2,000 kwhr during a given billing cycle, your bill would be $200 before taxes (2,000 kwhrs X 0.07 + $60). In this case, the actual rate is 10 cents per kwhr. If it is a bundled rate, which includes the delivery charge, of 9 cents per kwhr, your bill would be $180 before taxes.

This TXU Energy bill shows an actual rate of 14.5 cents per kwhr.

This TXU Energy bill shows an actual rate of 14.5 cents per kwhr.

So, even if your electricity company—TXU, Reliant, Cirro, Stream, etc.—shows a certain rate, that does not mean that it is the actual total bundled rate that you will end up paying. To find out if you are being given a bundled or unbundled rate, you can simply look at your bill. Generally in Texas, if the delivery charge (often listed as “Oncor Charges” or “TDU Charges”) is more than $8-$10, then the rate is probably unbundled. There should be a line on the bill stating something like, “The average price you paid for electric service this month was 12 cents per kwhr.”

These examples may not apply to all electricity providers in Texas, but it is a general guide in determining if your rate is bundled or unbundled. One company that always uses a bundled commercial rate in Texas is Ambit Energy. So, the rate they advertise will include the delivery charge, so there are no surprises when you receive your bill.

For more information about Ambit Energy Texas rates, other service areas, and customer perks such as Ambit’s Free Energy program, visit www.joinambitiousenergy.com.

TXU Bill2

This TXU bill shows an average rate of 12.8 cents per kwhr but the energy charge shows 7.7 cents per kwhr. This is an unbundled rate.

 

David Lee
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Comments

  1. In my Ambit bill, the $20 Oncor charges are AFTER the electricity billing charges, so this is false advertising and misleading to say "One company that always uses a bundled commercial rate in Texas is Ambit Energy…the rate they advertise will include the delivery charge, so there are no surprises when you receive your bill."
    It's a flat out false statement based on my bills.

  2. Hi Megan. The average rate INCLUDES the Oncor charges. Find the average rate on your bill. The bill will show the charges separately much like a cell phone bill. There should be a line similar to the average rate line/sentence on the bill images above. This is the rate Ambit quotes and displays on the website to make sure it includes the energy charge and the deliver (Oncor) charge. So, always look for the average rate.

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