Texas TDU Delivery Charges: How They Affect Plan Comparisons
Estimated costs are informational. Provider rates and plan terms may change. Confirm current details directly with the provider.
When you get a Texas electricity bill, you'll see two main cost categories: energy charges from your retail provider, and delivery charges from your TDU (Transmission and Distribution Utility). The TDU (also called a TDSP) is the company that physically delivers electricity to your home through power lines, transformers, and meters.
TDU vs. retail provider: what's the difference?
- Sets the energy price (the market-competitive part)
- You choose them; switch anytime
- Bills you for energy supply
- Has no role in outage restoration
- Examples: TXU, Reliant, Gexa, Constellation
- Maintains poles, wires, and transformers
- Regulated monopoly; you cannot choose them
- Charges are set by the Texas PUC
- Handles all power outages
- Examples: Oncor, CenterPoint, AEP Texas, TNMP
What are TDU delivery charges?
TDU charges cover the cost of maintaining the physical infrastructure that delivers electricity to your home. They are regulated by the Texas Public Utility Commission (PUC) and are the same for every customer at a given address, regardless of which retail provider you choose. Switching providers does not change your TDU charges.
Most TDU charges have two components:
- Fixed monthly charge: A flat fee every month regardless of usage, set by each utility's tariff.
- Per-kWh delivery charge: A charge per kilowatt-hour of electricity consumed, subject to PUC-approved adjustments.
Current residential delivery charges
| Delivery area | Monthly | Per kWh | At 1,000 kWh | Effective and source |
|---|---|---|---|---|
| Oncor | $4.06 | 6.8673¢ | $72.73 | Bills on or after Oct 4, 2026 (PUCT Docket 59249, item 105: temporary rates pending a final order) |
| CenterPoint | $4.90 | 6.5333¢ | $70.23 | As of Oct 1, 2026 (PUCT) |
| AEP Texas North | $3.24 | 5.6¢ | $59.24 | As of Oct 1, 2026 (PUCT) |
| AEP Texas Central | $3.24 | 5.7¢ | $60.24 | As of Oct 1, 2026 (PUCT) |
| TNMP | $7.56 | 7.771¢ | $85.27 | As of Oct 1, 2026 (PUCT) |
Residential rates from the verified tariff schedule TrueBill uses in every estimate. Before taxes.
What an EFL average price already includes
Every residential Electricity Facts Label (EFL) shows an average price at 500, 1,000 and 2,000 kWh. Under the PUCT's EFL rule (16 TAC §25.475(g)(2)), that average reflects all recurring charges, including TDU delivery, and excludes state and local sales taxes and the gross receipts tax reimbursement. When you read a label's average price, do not add delivery charges to it a second time.
- Energy charge
- The retail provider's per-kWh price for electricity supply. It does not include delivery.
- TDU delivery charges
- Your utility's fixed monthly and per-kWh charges, passed through the same way by every provider.
- EFL average price
- Energy, base and delivery charges plus other recurring charges and credits at that usage level, divided by the kWh. Before taxes.
- Taxes
- Not in the EFL average price or in TrueBill estimates; your bill may add sales taxes and the gross receipts tax reimbursement.
- Bill credits
- Discounts that apply only when your usage meets the plan's conditions. An EFL average includes a credit only at the usage levels where it applies (see bill credits).
Why most comparison sites get this wrong
Many electricity comparison websites show only the retail energy rate, which is the price the provider charges for electricity supply. They omit TDU delivery charges from their displayed rates, making plans appear cheaper than they actually are.
A plan shows an energy charge of 9.4¢ per kWh with a $10 monthly base charge. That 9.4¢ is an energy-only rate, not the EFL average price. In Dallas, Oncor's residential delivery charges are $4.06 per month plus 6.8673¢ per kWh (bills on or after Oct 4, 2026). At 1,000 kWh the monthly bill before taxes is (9.4¢ × 1,000) + $10 base charge + (6.8673¢ × 1,000) + $4.06 = $176.73, not the $94 the energy charge alone suggests.
Reliable plan comparisons should include both supply and delivery components at your actual usage level. A supply-only figure is not a full monthly estimate.
Practical comparison steps
- Start with your typical monthly usage and compare estimated total bill.
- Re-check at nearby usage levels to account for seasonal variation.
- Review current EFL details and provider terms before enrolling.
Delivery charges are regulated and can be updated by the Texas PUC. Provider pricing and promotions may also change over time.
Texas TDUs and their service areas
| TDU | Service area | Major cities |
|---|---|---|
| Oncor | North and Central Texas | Dallas, Fort Worth, Austin suburbs |
| CenterPoint | Greater Houston | Houston, Sugar Land, The Woodlands |
| AEP Texas North | West Texas | Midland, Abilene, San Angelo |
| AEP Texas Central | South Texas | Corpus Christi, Laredo, McAllen |
| TNMP | Scattered North TX / Gulf Coast | Parts of DFW, Clute, Lake Jackson |
Do TDU rates ever change?
Yes. TDUs periodically file for rate adjustments with the Texas PUC. These changes are outside your control and apply regardless of which retail provider you use. TrueBill updates its delivery charge database when PUC-approved rate changes take effect.
Continue Comparing Smarter
Compare plans by estimated cost at your usage, then verify final pricing terms directly with the provider before enrolling.