What Are TDU Pass-Through Charges?

2 minute read Graham Lumley Last update February 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:

  1. Oncor Electric Delivery
  2. AEP Texas Central
  3. AEP Texas North
  4. CenterPoint Energy
  5. Texas-New Mexico Power (TNMP)
  6. 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: 

UTILITYCURRENT DELIVERY CHARGE
Oncor$4.23 per month
5.0979 cents/kWh
AEP Texas Central$4.79 per month
5.7114 cents/kWh
AEP Texas North$4.79 per month
5.3153 cents/kWh
CenterPoint Energy$4.39 per month
5.377 cents/kWh
TNMP$7.85 per month
6.0465 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 updated at anytime throughout the year.