Electric Rate Breakdown

Electric Rate Breakdown | New Braunfels Utilities

How Electric Rates Are Structured

Ground view of NBU's Hortontown Substation

Electric rates include a fixed customer charge and a per kilowatt-hour (kWh) charge. Together, these charges help recover the cost of operating, maintaining, and investing in the electric system that serves our community. These charges support everything from purchasing power to maintaining local infrastructure and ensuring service is available when you need it.

Charge Definitions
Cost of Power Forecast
Neighborhood Utility Rate Comparisons

Rather than owning power plants, we purchase electricity through the ERCOT market using a hedging strategy designed to reduce price volatility. This charge reflects the direct cost of power and is passed through to customers.

Transmission charges cover the cost of moving electricity from power generation sources to our service area. These costs are set annually by the state and are based on peak demand levels.

This charge supports the operation and maintenance of the local electric distribution system, including poles, wires, transformers, and related equipment.

This charge helps rebuild financial reserves so we’re prepared for emergency events, such as severe weather that can impact electric service.

This fixed charge covers the base cost of making electric service available, including meter reading, billing, and account management. It does not vary based on electricity usage.

The table below shows a forecast of electric costs based on average usage. It breaks down the individual line items that make up the total electric rate, including generation, transmission, delivery, and other system-related costs.

This forecast is based on typical monthly usage and may change due to extreme weather conditions or energy market events.

Line Item	May	March Monthly Electric Bill	June	April Monthly Electric Bill
Generation	$.0480	$57.60	$.0580	$69.60
Transmission	$.0172	$20.64	$.0172	$20.64
Delivery Charge	$.03016	$36.19	$.03016	$36.19
Replenish Reserves	$.0075	$9.00	$.0075	$9.00
Per kWh Charge Total	$0.1029		$0.1129
Electric Service Availability Charge	$22.80	$22.80	$22.80	$22.80
Total Bill*		$146.23		$158.23

_{*Based on an average usage of 1,200 kWh. The line items listed reflect the pending update to the NBU bill. This forecast is subject to change should there be an extreme weather and/or energy market event.}

NBU Electric Rates Compared to Neighboring Utilities (June 2026)

Based on an average usage of 1,200 kWh.

Average Cost Per Kilowatt-Hour

The January 2026 average cost per kWh for residential customers is $.1129.*

The current 12-month average is $.1059 per kWh.