Ultimate Guide to TDU/TDSP Charges in Texas

What are TDU charges?

TDU charges are part of your monthly electricity bill in Texas that pay for the delivery of power from the plant to your home, management and maintenance of power lines, and the meter and measurement of your home’s electricity consumption.

Learn more about the charges on your energy bill.

What is a TDU?

TDU stands for Transmission/Distribution Utility. TDUs are the organizations that are responsible for the delivery of electricity from the power plant to your home or your business. They manage and maintain power lines, as well as the meter on your home that measures your home’s energy usage. TDUs may also be referred to as Transportation and Distribution Service Providers (TDSP).

When trees fall into power lines during a bad storm, your TDU is responsible for repairing that line and restoring electricity to the area that lost power as a result of that fallen tree.

How are TDU charges determined?

Charges from TDUs are approved by the Public Utility Commission of Texas (PUCT) and will appear as a line item on your bill next to the phrase “TDU charges,” TDU delivery charges,” or “TDU pass-through charges.”

TDU charges are adjusted twice per year, every March 1 and September 1. View the latest TDU charge updates.

TDU charges change because the TDUs are allowed to recuperate all of the costs incurred from the services they provide. If Houston experienced several severe hurricanes that required Centerpoint Energy to provide more maintenance than normal, they would likely need to increase their charges for a certain time.

How to find your TDU charges

Before you enroll in an electricity plan, you can view your region’s TDU charges on that plan’s Electricity Facts Label or Fact Sheet.

Other charges on your electricity bill

After you enroll in a plan, your electricity bill should break down your monthly payment into different charges including:

TDU charge
Energy charge
Base fee (many plans do not have base fees)
PUC assessment
Sales tax

How many TDUs are there in Texas?

There are currently six TDUs providing services to different regions throughout the state of Texas: Oncor, Centerpoint Energy, Texas-New Mexico Power, American Electric Power (AEP) Texas Central, AEP Texas North, and Lubbock Power & Light (LP&L).

Oncor services most of North Texas, Centerpoint Energy services the Houston area, Texas-New Mexico Power provides services to West Texas, AEP services Central and South Texas, and Lubbock Power & Light services the city of Lubbock.

View current TDU rates by provider here.

Find your Texas TDU

Here are a few of the major cities that lie within the service area of Texas’ Transmission and Distribution Service Providers.

Oncor: Dallas, Fort Worth, Waco, Temple, Round Rock, Midland, Odessa
Centerpoint: Houston, Beaumont
Texas-New Mexico Power: League City, Glen Rose, Pecos, Angleton
AEP Texas Central: Corpus Christi, McAllen, Victoria, Laredo, Harlingen
AEP Texas North: Abilene, San Angelo, Vernon
Lubbock Power & Light: Lubbock

Lubbock Power & Light became the sixth Texas utility company in January 2024 when the city of Lubbock officially deregulated its electricity market. You can read more about that transition in our guide to electricity choice in Lubbock.

Written by Graham Lumley

Graham Lumley, Digital Marketing Manager at BKV Energy, leads digital and traditional marketing strategies, focusing on educating Texans about the state's deregulated energy market. With over 8 years of marketing experience, he creates content to help consumers understand and save on their energy bills, bringing a fresh and dynamic approach to the industry.