How is my electric rate calculated?

Your electric bill consists of several different charges that CoServ uses to recoup our costs to purchase and deliver electricity to your home or business.

This article will break down how your bill is calculated and what each charge is.

What is the base rate?

First, let’s break down your base rate by following its journey from the point of generation to your home, business or school.

CoServ buys wholesale electricity on the wholesale market from the statewide Electric Reliability Council of Texas (ERCOT). This power comes from power plants and renewable energy sources across the state of Texas. That cost makes up about 65 percent of your electric rate.

Next, the power travels on transmission lines and into the substations. The transmission and substation cost makes up about 15 percent of your electric rate.

From the substation, the electricity travels on CoServ's local distribution system, which is made up of wires, transformers, switch gears and other equipment, until it reaches its destination. This is known as the local delivery system and makes up about 20 percent of your electricity rate.

Wholesale costs + transmission and substation costs + local distribution system = your base rate.

What is the Power Cost Recovery Factor (PCRF)?

As the cost of wholesale electricity goes up and down, those charges are passed through to CoServ and we pass those on to our Members. As an electric co-op, we never mark electricity up for profit.

The wholesale price of electricity changes based on a number of factors, the biggest being the price of natural gas.

Because our base rate doesn’t change, CoServ accounts for these changes in wholesale electricity cost by adjusting the Power Cost Recovery Factor (PCRF) on your bill each month. If the PCRF is a negative number, it subtracts from your electric rate, lowering the cost of power. If the PCRF is a positive number, it adds it to your electric rate, raising the cost of power.

What is the Securitized Charges Recovery Factor (SCRF)?

The Securitized Charges Recovery Factor (SCRF) is used to calculate amounts that CoServ must recover from Members to repay and administer the securitized bonds issued by CoServ under Texas Senate Bill 1580. The proceeds of these bonds were used to pay qualified costs and expenses relating to Winter Storm Uri in February 2021. At least every six months, the amount that is charged on a per kWh basis will be reviewed, and adjusted as needed, to ensure CoServ is collecting the appropriate amounts.

Base rate -/+ PCRF + SCRF = Your energy charge 

Click here for more on the SCRF, the Brazos bankruptcy and the path forward.

Click here for more on CoServ electric rates.