TDU Charges & Residential Pricing

What is a TDU?
Transmission and Distribution Utility (TDU) companies are responsible for the delivery of electricity from the power plants to your home. They also own the meter and measure your electricity consumption.

What are TDU Delivery Charges?
Most people don’t realize there is a cost associated with maintaining electricity poles and wires, checking and replacing meters, storm restoration, and other services that our local TDU companies provide. In order to cover those costs, your local TDU adds on a monthly flat fee as well as a usage based charge.

Is my TDU allowed to charge these fees?
Yep. In fact, the charges have been approved by the Public Utility Commission of Texas and TDUs charge the fees to all retail electric companies. The good news is that they’re passed through to you without any markup—so you’re not paying more than you should for electricity.

Why are these fees separated on my bill?
We do this so that your bill is easier to break down and understand. There are no hidden fees that aren’t mentioned during your enrollment. The average price you enroll on—7.9₵ per kWh at the 2000 kWh consumption level, for example—already includes your TDU charges.

How are the TDU Delivery Charges calculated? Will it be the same amount every month?
TDU charges are billed monthly in two ways: a flat monthly charge in addition to a usage (per kilowatt hour) charge. For this reason, you may notice a variation in the amount charged each month because your usage constantly changes.

NOTE: TDU price changes allowed by law or regulatory actions may cause a slight difference in your invoices. See the tables above for the last two months TDU charges. These rates are approved by the Public Utility Commission and apply to all retail electric companies.