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What Are TDU Pass-Through Charges?
2 minute read • Graham Lumley • Last update September 2024
What are TDU/TDSP charges?
Your electricity bill is made up of two services:
- the REP or retail electricity provider that sells you your energy (that’s us)
- 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 six TDSPs in Texas, each with its own geographic territory:
- Oncor Electric Delivery
- AEP Texas Central
- AEP Texas North
- CenterPoint Energy
- Texas-New Mexico Power (TNMP)
- Lubbock Power & Light (LPL).
Moving to a territory owned by another TDSP will change the TDU rate you pay.
Learn more about TDUs/TDSPs.
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.
Current TDU charge rates
Below you’ll find a table outlining the latest changes to the TDU charges and a comparison to the previous rates:
| UTILITY | CURRENT DELIVERY CHARGE |
|---|---|
| Oncor | $4.23 per month 5.1893 cents/kWh |
| AEP Texas Central | $4.79 per month 5.8156 cents/kWh |
| AEP Texas North | $4.79 per month 5.4758 cents/kWh |
| CenterPoint Energy | $4.39 per month 5.35 cents/kWh |
| TNMP | $7.85 per month 6.2927 cents/kWh |
| LP&L | $0.00 per month 6.442 cents/kWh |
Charges are updated by the utility companies and approved by the PUCT every March and September, but may be updated at anytime throughout the year.
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