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If you live in a deregulated electricity area of Texas, your electric bill usually includes more than the electricity you use. One line item you may notice is TDU delivery charges. These charges help pay for the local system that carries power to your home, including poles, wires, meters, transformers, storm restoration, and grid maintenance.
TDU stands for Transmission and Distribution Utility. You may also see TDSP, which stands for Transmission and Distribution Service Provider. Your TDU is the utility company that physically delivers electricity to your home. Your retail electric provider (REP) is the company that sells you your electricity plan.
As of July 2026
| Utility | TDU Charges per Month (fixed) | TDU Charges per kWh (variable) |
|---|---|---|
| Oncor | $4.06 | $0.0612 |
| CenterPoint Energy | $4.90 | $0.0515 |
| AEP Texas North | $3.24 | $0.0567 |
| AEP Texas Central | $3.24 | $0.0583 |
| Texas-New Mexico Power (TNMP) | $7.85 | $0.0647 |
| LP&L | – | $0.06312 |
TDU delivery charges are regulated fees from your local utility for moving electricity from the power grid to your home or business. These charges can make up about one-third of a monthly electricity bill, although the exact amount depends on your usage, location, and current utility rates.
These fees help cover local utility work such as maintaining poles and wires, checking and replacing meters, restoring power after storms, and supporting other delivery services. Those costs are passed through to customers as delivery charges.
Most residential TDU delivery charges include two parts:
TDU Delivery Charges = Fixed Monthly TDU Fee + (Per-kWh TDU Charge × Monthly Electricity Usage)
That means your TDU charges usually increase when your electricity usage goes up. If you use less electricity, the usage-based portion of your delivery charges will generally be lower.
You pay TDU charges because electricity has to be delivered safely and reliably to your property. In deregulated areas, you can choose your retail electric provider, but you do not choose your TDU. Your TDU is assigned based on where you live.
For example, customers in different parts of Texas may be served by utilities such as Oncor, CenterPoint, AEP Texas, Texas-New Mexico Power, or another local delivery utility. Each TDU has its own approved delivery rates as seen above.
No. Your energy charge is what your retail electric provider charges for the electricity supply in your plan. Your TDU delivery charge is what your local utility charges to deliver that electricity.
Some providers show TDU charges as a separate line item on the bill. Others bundle them into the advertised electricity rate.
In most cases, no. If your home is connected to the Texas electric grid, TDU delivery charges apply. Switching retail electric providers will not remove these charges because your TDU is based on your service address, not your chosen provider.
You may still be able to lower the usage-based portion of your TDU charges by reducing electricity consumption. Adjusting your thermostat, sealing air leaks, improving energy efficiency, and tracking your usage can help lower your total bill.
This is one of the most common questions about TDU delivery charges. A fixed-rate electricity plan usually locks in your provider’s energy rate, but TDU delivery charges may still change when utility rates are updated.
Texas delivery rates can change periodically, including around March and September, with approval from the Public Utility Commission of Texas. So even if your energy rate is fixed, your total bill may still move up or down if your usage changes or if approved TDU rates change. Also, the amount of electricity you use in a billing cycle plays a major factor in your final bill.
