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You signed a fixed-rate plan so your price wouldn’t move. Then your bill crept up anyway. The usual reason is TDU rate changes: updates to the delivery charges your local utility collects, which many fixed-rate plans pass straight through to you.
Key takeaways
- TDU delivery charges can make up a large share of a Texas electric bill.
- The PUCT approves changes to these charges, and some components are routinely updated during the year.
- Many fixed-rate plans lock the provider’s energy price but pass delivery charges through at cost, so your total can still move.
- Watt Panda factors delivery charges into every comparison and keeps an eye on changes for our customers.
A quick refresher on TDU charges
Your bill pays two companies: your retail provider for the electricity, and your TDU (like CenterPoint, Oncor, AEP Texas, TNMP or Lubbock Power & Light) for delivering it. Here’s a full explainer on TDU delivery charges.
The TDU’s charges are regulated by the Public Utility Commission of Texas (PUCT) and set through rate cases and periodic adjustments. Providers can’t mark them up.
Why TDU rate changes happen
Delivery charges are made up of several components, such as recovery of transmission costs, distribution investment, energy-efficiency programs and storm-related costs. Utilities file to update some of these on a regular schedule, and others change after a rate case is decided. Several adjustments commonly take effect around March 1 and September 1, though the timing depends on the utility and the component.
How that affects a “fixed” rate plan
Read your Electricity Facts Label closely. Many fixed-rate plans say the price can change to reflect changes in TDU charges or other regulatory charges. That means:
- Your provider’s energy charge stays fixed for the contract term.
- Your delivery charges can move up or down when the TDU’s approved rates change.
So a plan can be “fixed” and still produce a slightly different total cost per kWh a few months in. Some plans bundle delivery into a single all-in price, so check the EFL to see which kind you have.
What you can do
- Compare total prices, not energy charges. The EFL average price includes delivery and is the fairest comparison.
- Know your TDU. Delivery charges differ by area, so a plan in Houston and a plan in Dallas aren’t directly comparable. Find your TDU here.
- Watch your contract end date. That’s the moment you can shop the whole market again.
How Watt Panda helps
We break down what you’re paying for supply versus delivery, compare plans using your actual usage and your TDU’s current charges, and keep an eye on your contract so you’re never rolled onto a bad rate. You don’t have to track rate filings. We do.
Helpful official resources: Public Utility Commission of Texas
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Frequently asked questions
Can my fixed-rate plan legally change?
The provider’s energy charge on a fixed-rate plan is locked for the term, but plans can pass through changes in TDU and other regulatory charges if the EFL and terms say so. Your EFL spells this out.
How often do TDU charges change in Texas?
Some components are updated on a regular schedule, often around March and September, and larger changes follow rate cases approved by the PUCT.
Where can I see my current TDU charges?
Your bill shows delivery charges, and the PUCT and each utility publish their approved tariffs. Or send us your bill and we’ll break it down for you.
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