TDU / TDSP Delivery Charges
TDURegulated fees charged by Transmission and Distribution Utilities to maintain physical power lines, meters, and grid infrastructure.
Full Technical Definition
In Texas's deregulated energy market, Transmission and Distribution Utilities (TDUs / TDSPs)—such as CenterPoint Energy, Oncor Electric Delivery, AEP Texas, and TNMP—own and maintain the physical grid wires and smart meters. TDU charges consist of a fixed monthly base fee plus a per-kWh delivery charge approved by the Public Utility Commission of Texas (PUCT).
Real-World Texas Example
CenterPoint Energy in the Houston area charges a monthly base fee of $4.39 plus a volumetric delivery charge of ~5.4¢ per kWh consumed, regardless of which Retail Electric Provider (REP) you choose.
TDU Delivery Charge = Base Fee ($/month) + (Total Monthly kWh × TDU Rate ¢/kWh)Frequently Asked Questions
Can I avoid paying TDU delivery charges?
No. TDU delivery charges are mandatory regulated utility fees passed directly through by all Retail Electric Providers in Texas.
How often do TDU delivery charges change in Texas?
TDU charges are updated semi-annually (typically in March and September) following PUCT approval.