Understanding Commercial Rates/Charges

Your electric bill has three types of charges:

  1. Electricity rates differ greatly depending on the provider and terms. Rates change daily but, once you sign an agreement, are fixed for the length of the contract. Some customers prefer variable rates where they carry some or all of the risk for price changes but may receive lower rates.

  2. Transmission and distribution (TDSP) which are paid to the local wires company (CenterPoint, TXU, etc.) and are the same no matter who you select as your provider. They are based on your usage and peak demand. They cover the cost of the distribution network, repairs and maintenance, and meter reading. If your TDSP charges are higher than normal, GeoVend may be able to help you reduce them by showing you ways to modify peak demand or reduce consumption.

  3. Taxes are set by the state and local governments and are the same for all providers. If your electricity rate is lower, your taxes will be somewhat lower.