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. Typically $3–$6/month for residential customers.
- Per-kWh delivery charge: A charge per kilowatt-hour of electricity consumed. Typically 3–5 cents/kWh, but varies by TDU and is subject to PUC adjustments.
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 advertises “9.4 cents/kWh.” But the Oncor delivery charge in Dallas is approximately 3.7 cents/kWh plus $3.42/month (fixed). At 1,000 kWh, the actual all-in bill is: (9.4¢ × 1,000) + $10 base charge + (3.7¢ × 1,000) + $3.42 = $157.42, not the $94 the advertised rate implies.
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.