Understanding Your Bill

You pay your Sam Houston Electric Cooperative (SHECO) bill every month, but what exactly does it mean? Let’s examine your bill more closely.

Your monthly electric bill is full of useful information. Here’s what to look for:

1

Base Charge

This charge covers expenses associated with having a meter at your home or business, including monthly readings, billing, repairs, meter testing, and maintenance of your electric service.

2

Delivery

The delivery cost represents the price of delivering power to your home or business. This cost allows us to maintain the substations, poles, and distribution lines that deliver electricity to you. Part of the delivery cost also goes to necessary system upgrades and right-of-way maintenance.

3

Energy

This cost reflects the actual cost of the electricity the Co-op purchases for you, our members.

4

Meter Reading

This information includes data related to your current meter reading.

5

Usage Information

This chart includes your current energy use, alongside historic usage information from the previous 12 months.

6

Message

Look here each month for messages from Sam Houston EC.

terms

Franchise Fee

Many municipalities enact a “Franchise Fee” on utility companies, such as Sam Houston EC, for operating within their city limits.  Franchise fees are charged to the utilities that provide services within each city’s limits.

An executed franchise agreement between a city and Sam Houston EC requires the Cooperative to pay a franchise fee based on the cost of a consumer-member’s electric energy. The franchise fee will appear as a line item on some Sam Houston EC member's bill each month. While most franchise fee agreements have been in place since the 1970s, beginning January 2025, the fee will be listed as a separate line item on Sam Houston EC bills.

If you feel that your location is not located within the city limits and this notice is in error, you may contact your city.

Kilowatt Hour (kWh)

The kilowatt-hour is the basic measurement used to calculate your bill. Any electronic device has a certain amount of electricity it needs to function, also known as its wattage.

For example, the average ceiling fan is 50 watts. If you use that fan for 20 hours in 1 month, your ceiling fan will have consumed 1 kilowatt-hour. You can do the math by multiplying the wattage (50) by the number of hours used (20), and then dividing the sum by 1,000.

Here’s another example: If you run a 1,500-watt space heater for 8 hours a day, every day of the month, that will use up about 360 kWh for the month. Here’s the math: You used it for a total of 240 hours that month, because 8 hours a day x 30 days = 240. So, multiply the wattage (1,500) by the number of hours used (240), and then divide that by 1,000.

Usage

SHECO meters accurately record the kilowatt-hours used with a register that counts in ascending order. So, our billing department calculates your actual usage by subtracting your official reading before your last bill from your most recent reading.

Delivery Charge

The delivery cost represents the price of delivering power to your location. It allows us to maintain the substations, poles and distribution lines that deliver electricity to you. It also covers necessary system upgrades and right-of-way maintenance.

This charge is currently .0310 per kilowatt-hour of consumption.

Energy Charge

The energy charge is the actual cost of the electricity SHECO provides to you.

This charge is not marked up– it’s the actual cost of electricity on the market that SHECO is able to purchase.

Base Charge

SHECO bills also include a base charge of $31.75. This covers expenses associated with having a meter at your location, including monthly readings, billings, repairs, meter testing, and maintenance of your electric service.