3 minute read • Graham Lumley • Last update February 2024
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.
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.
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.
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.
After you enroll in a plan, your electricity bill should break down your monthly payment into different charges including:
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.
Here are a few of the major cities that lie within the service area of Texas’ Transmission and Distribution Service Providers.
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.
