Quick Answer
TDU delivery charges add 3-5 cents per kWh to every Texas electricity bill. Here is what you are paying for and why these fees are the same regardless of which provider you choose.
What Are TDU Charges?
TDU (Transmission and Distribution Utility) charges are the fees you pay for electricity delivery—the cost of transmitting power from generators to your home through the grid. In Texas, these charges are regulated by the Public Utility Commission and are identical for everyone in a TDU territory, regardless of which Retail Electric Provider (REP) you use.
Think of TDU charges like water delivery fees. You choose what brand of water to buy, but everyone pays the same rate for the pipes that bring water to your house. Similarly, you choose your REP and rate, but everyone pays the same TDU fees for the wires that deliver power to your meter.
Components of TDU Charges
TDU charges consist of several components that appear differently on different bills:
| Component | Typical Cost | What It Covers |
|---|---|---|
| Base Charge | $3-10/month flat | Meter reading, billing, customer service |
| Delivery Charge | 3-4¢/kWh | Power lines, transformers, distribution equipment |
| Transmission Charge | Varies monthly | ERCOT costs to move power across state grid |
| System Benefit Fund | Small per-kWh | Low-income assistance programs |
Key point: You pay the base charge whether you use zero kWh or 3,000 kWh—it's fixed. The per-kWh charges scale with your usage.
TDU Charges by Territory
Each TDU has different approved rates based on their infrastructure costs and service territory characteristics:
| TDU | Base Charge | Delivery | Service Area |
|---|---|---|---|
| Oncor | ~$3.42/mo | ~3.5¢/kWh | Dallas-Fort Worth (10M+ customers) |
| CenterPoint | ~$4.39/mo | ~4.0¢/kWh | Greater Houston |
| AEP Texas | $4-6/mo | ~3.8¢/kWh | Corpus Christi, Laredo, Midland-Odessa |
| TNMP | ~$7.85/mo | ~4.2¢/kWh | Parts of Gulf Coast |
Key insight: TNMP has the highest base charge but not necessarily the highest total cost—it depends on your usage.
How TDU Charges Affect Your Bill
For an average Texas household using 1,000 kWh per month, TDU charges typically add $35-$50 to the monthly bill. That's roughly 35-40% of your total electricity cost.
| Example: Oncor TDU at 1,000 kWh | Amount |
|---|---|
| Base charge | $3.42 |
| Delivery charge (1,000 × 3.5¢) | $35.00 |
| Transmission charges | ~$5-8 |
| Total TDU charges | ~$43-47 |
| REP energy charge (6¢/kWh) | $60.00 |
| Total monthly bill | ~$103-107 |
Pro tip: When comparing plans, always use the EFL which includes all TDU charges at standard usage levels.
Why You Cannot Avoid TDU Charges
TDU charges are pass-through costs that every retail provider must collect and remit to the TDU. There is no way to avoid them short of generating your own electricity entirely off-grid.
Some important facts:
- Switching providers does not change your TDU charges
- No REP can offer lower TDU charges than competitors
- All plans in the same TDU territory have identical delivery fees
- Solar panels reduce TDU charges only by reducing kWh consumed
The only way to reduce TDU charges is to use less electricity—or move to a different TDU territory with lower rates.
Frequently Asked Questions
Are TDU charges the same for all electricity providers?
Can I switch to a TDU with lower charges?
Why are TDU charges different across Texas?
Do TDU charges change over time?
Looking for more? Explore all our Understanding Deregulation guides for more helpful resources.
About the author
Consumer Advocate
Enri knows the regulations, the fine print, and the tricks some suppliers use. He's spent years learning how to spot hidden fees, misleading teaser rates, and contracts that sound good but cost more. His goal: help people avoid the traps and find plans that save money.
Compare rates in your area
Topics covered
Sources & References
- Public Utility Commission of Texas (Public Utility Commission of Texas): "Texas TDU delivery charge regulations"Accessed Dec 2025
Last updated: December 31, 2025
