What Are TDU Pass-Through Charges?
Your electricity bill is made up of two services: the REP or retail electricity provider that sells you your energy (that’s us) and the Transmission/Distribution Utility (TDU) — also known as a Transportation Distribution Service Provider (TDSP) in charge of the energy grid in your geographic area that bills you for the delivery or passthrough of electricity from the generation source.
While your energy charges are determined by the service plan you’ve chosen (giving you some control over the cost), the delivery charge depends on your location. There are five TDSPs in Texas, each with its own geographic territory: Oncor Electric Delivery, AEP Texas Central, AEP Texas North, CenterPoint Energy, and Texas-New Mexico Power (TNMP). Moving to a territory owned by another TDSP will change the rate you pay them.
What Do TDU Pass-Through Charges Include?
TDU charges include a monthly fixed and a monthly variable charge. These charges are updated twice annually 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.
TDU delivery charges are an essential part of keeping the grid operational, and these fees go towards the maintenance of the switchgear and transformers as well as the grid capacity itself.
Below you’ll find a table outlining the latest changes to the TDU charges and a comparison to the previous rates:
|TDU||Current Delivery Charge (September 2023)||Previous Delivery Charge (March 2023)|
|Oncor||$4.23 per month|
|$4.23 per month|
|AEP Texas Central||$4.79 per month|
|$4.79 per month|
|AEP Texas North||$4.79 per month|
|$4.79 per month|
|CenterPoint Energy||$4.39 per month|
|$4.39 per month|
|TNMP||$7.85 per month|
|$7.85 per month|
Charges will be updated again in March and September.