Understanding Your Utility Bill
What Is a Fuel Adjustment Charge?
The fuel adjustment charge is a monthly fee that covers the changing cost of the electricity the City has to purchase from our power provider (LCRA). Because the cost of generating electricity goes up or down each month, this charge also changes monthly. It is not a penalty or extra fee—it simply reflects the real cost of the power used in your home.
We multiply that rate by the number of kilowatt-hours (kWh) you used. That total becomes the fuel adjustment portion of your bill.
What Is the Local Charge?
The local charge is separate from the fuel adjustment. It covers the City’s cost to deliver and maintain reliable electric service, including the maintenance of power lines, equipment, and system upkeep. This charge uses a tiered rate:
- For the first 1,200 kWh: You’re charged $0.02381 per kWh
- For anything over 1,200 kWh: You’re charged $0.03750 per kWh
There is also a base residential rate of $11.32 each month. Meaning, if your home is receiving service, you will be charged $11.32 each month, regardless of your usage.
In Short:
- Fuel Adjustment = cost of buying electricity
- Local Charge = cost of delivering and maintaining electricity service