TDU

Business Electricity Basics – Power Up Your Business!

You’re looking for a business electricity plan for your Texas business. But first you need to understand what you’re shopping for and how to compare electricity plans for your business. It helps to know the basics — how to tell a KW from a kWh, delivery fees vs. energy costs, and what are demand charges?  In this article, we’ll demystify the mysteries of business electricity, so you can shop business electricity rates and make the best choice for your commercial electricity plan.

This article assumes that you are familiar with electricity shopping from purchasing it for your home. Need a refresher? Check out What is deregulation? Shopping for business electricity rates is a breeze once you understand a few specific things about business electricity in Texas.

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September 2018 Texas TDU Delivery Rate Changes

Transmission and Distribution Utility (TDU) delivery rate changes in Texas impact your monthly electric bill. It happens every September and every March. You open up your electricity bill and notice new line items, or a different charge compared to the prior month. Most of the time, it’s small changes in the delivery rates, but these can add up. There’s no way to avoid these changes, but it helps if you understand what’s going on.

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Texas is Deregulated. Why Can’t I Choose My Electricity Provider?

For most people living in states open to electric competition, the year deregulation was adopted marked a complete turnaround of electricity as they knew it. Instead of only having one utility to fulfill both supply and delivery of electricity, consumers got the power to choose their own supplier. Providers offering electricity plans and better electricity rates flooded the market and suddenly there were hundreds of choices for consumers.

Sadly, the windfall of electric choice is not available to all who live in Texas. Electric cooperatives (“co-ops”) and municipally-owned utilities (“munis”) are exempt from participating in deregulation. Additionally, Texas law includes exceptions for certain investor-owned utilities to delay participation in retail competition because of lack of competition in their wholesale market and/or their lack of being part of ERCOT.

What does this mean for you?

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