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Ever looked at your Texas electricity bill and wondered why you’re paying a separate company for delivering electricity you already paid for? Those are TDU delivery charges, and they’re one of the most misunderstood lines on a Texas bill.
Key takeaways
- TDU stands for Transmission and Distribution Utility, the company that owns the poles, wires and meters in your area.
- You can’t choose your TDU. It’s set by your address.
- TDU delivery charges are regulated by the PUCT and are the same no matter which provider you pick.
- They have a fixed monthly part and a per-kWh part, and they’re already included in the average price on a plan’s EFL.
What is a TDU?
In the deregulated parts of Texas, two different companies are involved in getting power to your home:
- Your retail electricity provider (REP) sells you electricity and sends your bill.
- Your TDU owns and maintains the poles, wires, transformers and meters, reads your meter and restores power after outages.
The major TDUs are CenterPoint Energy (Houston area), Oncor (Dallas-Fort Worth and much of North and West Texas), AEP Texas Central and AEP Texas North, Texas-New Mexico Power (TNMP) and Lubbock Power & Light. See which TDU serves your area.
What TDU delivery charges include
TDU charges usually have two parts:
| Type | What it is |
|---|---|
| Fixed monthly charge | A flat fee for being connected, even if you use 0 kWh |
| Per-kWh delivery charge | A charge for each kWh delivered to your home |
Your provider collects these charges on the TDU’s behalf and passes them through on your bill, sometimes as a separate line and sometimes rolled into the price.
Can you avoid TDU charges?
No. Every customer on the grid pays them, including homes with solar panels that still connect to the grid. What you can control is the provider’s part of the bill: the energy charge, base charge, credits and contract terms.
How TDU charges change your plan comparison
Here’s the part most people miss: because every provider in your area passes through the same TDU charges, comparing plans fairly means comparing the total average price, which already includes delivery. The Electricity Facts Label shows that total at 500, 1,000 and 2,000 kWh.
TDU rates are also updated from time to time with approval from the PUCT, so the delivery part of your bill can move during a contract. Here’s why your “fixed” rate can still change.
How Watt Panda handles delivery charges
When we compare plans for you, we always calculate your expected cost with delivery charges included, based on your actual usage and your TDU. That way the number we show you is the number you’ll actually pay.
Helpful official resources: Public Utility Commission of Texas
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Frequently asked questions
Are TDU charges the same with every provider?
Yes, within the same service area. The TDU’s charges are set by regulation, so a plan’s price difference comes from the provider’s own charges and terms.
Why do TDU charges feel so high?
They cover the cost of building and maintaining the local grid, including storm restoration. For many homes they make up a large share of the total bill, especially in low-usage months.
Do people with solar still pay TDU charges?
Yes. Homes that stay connected to the grid still pay the fixed monthly TDU charge and delivery charges on the power they pull from the grid.
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