If you’re a Texas electricity customer, you might be paying around 40% of your bill in TDU (Transmission & Distribution Utility) delivery charges—but you probably don’t know how those charges are calculated or why they change so frequently.
What Are TDU Charges?
- TDUs like CenterPoint Energy, Oncor, AEP Texas North/Central, TNMP, and Lubbock Power & Light are responsible for poles, wires, meters, and restoring service during outages.
- Their costs are regulated by the Public Utility Commission of Texas (PUCT) and set in lengthy rate case filings.
- REPs such as TXU Energy, Direct Energy, and Constellation must pass these costs directly to you—without markup.
Why It’s Hard to Predict or Compare
- TDU delivery rates change every March 1 and September 1, and sometimes mid-year if approved by the PUCT.
- That means even if you’re on a “fixed rate” plan, your total effective rate per kWh might change mid-contract when delivery charges adjust.
- And you don’t see how the charge is calculated—your bill doesn’t show the energy-efficiency recovery factor, transmission cost, transition charges, or deferred tax credits. It just shows one line item.
TDU Charges by Provider (as of March 2025)
| TDU Provider | Monthly Charge | Delivery Charge (¢/kWh) |
|---|---|---|
| CenterPoint Energy | ~$4.39 | ~4.24¢ |
| Oncor | ~$4.23 | ~5.00¢ |
| AEP TX-Central/North | ~$3.21 | ~5.24¢ / ~5.13¢ |
| TNMP | ~$7.85 | ~5.71¢ |
| Lubbock Power & Light | $0.00 | ~6.31¢ |
Because these charges vary by provider—and are opaque—they’re impossible to predict and easy to misinterpret in bundled energy plans.
Why CenterPoint’s Lack of Transparency Is a Problem
As a CenterPoint Energy customer (Houston metro), your delivery charge is roughly 4.24¢/kWh plus a $4.39 monthly fee. But how that number is derived isn’t visible:
- You don’t see the EECRF, TCFR, or transition charges behind that rate.
- There’s no visibility into how often these charges will change or by how much—from one quarter to the next.
- Many REPs bundle TDU charges with energy costs, hiding what you’re actually paying for delivery vs supply.
All of this means your “fixed rate” energy plan may not feel so fixed after all.
How Watt Panda Cuts Through the Confusion
At Watt Panda, we guard your back against this tangled mess with our full concierge service:
- We analyze your Energy Facts Label and break out the TDU charges versus your REP energy rate—plain and simple.
- We choose and negotiate plans that align with how much electricity you actually use—not baited with invisible thresholds or bundled charges.
- We monitor CenterPoint and other TDU rate changes every March and September and proactively adjust your plan or strategy.
- You see transparent, no‑junk breakdowns of what you actually pay for supply vs delivery—so you’re not surprised by sudden changes.
Our clients don’t track supply tiers or TDU fluctuations. We do it all.
Why This Reality Matters to You
- If your energy rate looks great, but your TDU delivery charge increases mid‑contract, your total cost per kWh rises—without warning.
- Many REPs bundle TDU fees, making cost comparison nearly impossible.
- CenterPoint and other TDUs offer virtually no public transparency into how their per‑kWh fees are broken down or updated.
Bottom Line
- TDU charges are real, substantial, and essentially uncontrollable for the consumer. They make up ~ 30–40% of your total bill.
- The system is designed with opaque thresholds and shifting charges—especially in areas served by CenterPoint and similar TDUs.
- But Watt Panda removes the confusion. We optimize energy supply, monitor TDU changes, and deliver clarity and savings.
