What Are TDU Pass-Through Charges?

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) 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.

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: 

TDUCurrent Delivery Charge (September 2023)Previous Delivery Charge (March 2023)
Oncor$4.23 per month
5.0339 cents/kWh
$4.23 per month
3.8498 cents/kWh
AEP Texas Central$4.79 per month
5.5226 cents/kWh
$4.79 per month
4.297 cents/kWh
AEP Texas North$4.79 per month
5.1265 cents/kWh
$4.79 per month
3.9205 cents/kWh
CenterPoint Energy$4.39 per month
5.4694 cents/kWh
$4.39 per month
3.7332 cents/kWh
TNMP$7.85 per month
6.0465 cents/kWh
$7.85 per month
4.5521 cents/kWh

Charges will be updated again in March and September.