3 minute read • Last update May 2024
Are electricity bills getting higher? The short answer: yes, it’s possible. If you’ve recently experienced some sticker shock when receiving your most recent electricity bill, you may not be alone. In the last month in particular, a change was made to all Texas electricity bills across the entire state that may have led to a higher bill than you may have expected.
That change? An increase in the TDU Delivery Charge (or the TDU Pass Through Charge).
TDU stands for Transmission/Distribution Utility. TDUs are the companies that are responsible for the management and maintenance of the infrastructure that delivers electricity to your home or business in Texas. This is a separate service from your REP (retail electricity provider).
Currently, there are 5 TDUs. Here are the areas of Texas they service:
TDU charges cover the costs of the management and maintenance of the power lines and other related infrastructure handled by the utility company. Each TDU charge includes a fixed monthly fee and a variable delivery rate. These charges are updated twice annually (every March and September) with approval from the Public Utility Commission of Texas (PUCT).
Retail electric providers (like BKV Energy) are not allowed to charge a markup on these fees. BKV Energy and other retail electric providers have no control over TDU charges and receive none of the money that is charged.
Yes, TDU charges have recently increased. Every March and September, the PUCT reviews and approves new TDU charges from each utility company.
Here’s how each TDU charge changed in September 2023:
Every six months, BKV Energy updates a table to show the previous and current TDU charges.
Let’s look at an example to see how these ~2 cent per kWh TDU charge increases could impact an electricity bill.
Here’s the formula to calculate your electricity bill:
Energy Bill = kWh Usage x (Energy Rate + TDU Delivery Rate) + TDU Monthly Fee
We’ll compare a hypothetical bill in the Oncor utility region that consumed 1500 kWh during a billing period at both the previous and current TDU charges. We’ll use an Energy Charge of $0.09 per kWh.
This hypothetical electricity bill increased nearly $25 for one billing period simply because the TDU charge rose by about 1.5 cents per kWh.
We know – this is very frustrating. Unfortunately, as a retail electricity provider, there is nothing we can about TDU charges. Those are entirely up to your region’s utility company and the Public Utility Commission of Texas.
Fortunately, there are certain things you as a homeowner or renter have control over. There are many actions you can take to reduce your electricity consumption which will have a direct impact on your energy bill. For example, you can:
We compiled a list of 100 energy saving hacks you can follow to reduce your electricity bill. Check them out and share with your friends and family.
If you have any questions about energy bills, TDU charges, or anything else, please do not hesitate to contact us at [email protected].
