The bundled price of electricity or all-in price you pay consists of the following:
- Generation / Electric Energy charges (negotiated component)
- Transmission / Distribution Service Provider (TDSP) charges (regulated – TX rates available at http://www.puc.state.tx.us/industry/electric/rates/Trans/TDGenericRateSummary.pdf)
- Taxes vary significantly by region and can change the cost of service by as much as fifteen percent. In Texas, service is charged a state (6.25%), city (1%) and special (1%) tax. In addition, the local distribution company passes through a gross revenue adjustment (varies by city size, 1.997% in most cities) and a Public Utility Commission Gross Receipts Assessment (.167%). While the special, city, and gross revenue tax vary, a safe assumption to consider is a tax burden of about 10.4%.Manufacturing, residential apartments and tax-exempt entities can shed the state and local taxes with the appropriate documentation, often making the investment in predominant use studies a worthwhile step in shedding 8.5% of the tax burden.

