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TDSP — Transmission and Distribution Service Provider

Texas Electricity Glossary

TDSP (Transmission and Distribution Service Provider) is the technical term for the regulated company that owns the electricity delivery infrastructure — the poles, wires, transformers, and smart meters — in your area. TDSP is interchangeable with TDU (Transmission and Distribution Utility). Both terms appear on Texas electricity bills; they mean the same thing. In the ERCOT deregulated market, the four main TDSPs are Oncor, CenterPoint Energy, AEP Texas, and TNMP.

Why You Might See "TDSP" on Your Bill

Texas electricity bills contain two main charges: the energy charge (set by your REP) and the TDSP/TDU delivery charge (set by the regulated wires company). Depending on your REP's bill format, this line might be labeled "TDSP charge," "TDU delivery," "wires charge," or simply the name of the TDU (e.g., "Oncor delivery"). Regardless of the label, it represents the same regulated pass-through fee.

TDSP Charges in Texas — Quick Reference

At 1,000 kWh/month, approximate TDSP delivery totals:

See the full TDU delivery charges comparison for the breakdown of fixed and per-kWh components.

Related Terms

Frequently Asked Questions

What is a TDSP charge on my electricity bill?

A TDSP charge is the fee for delivering electricity through the wires to your home — the same as a TDU charge. TDSP stands for Transmission and Distribution Service Provider. Some Texas REPs label this line item "TDSP" on the bill; others call it "TDU delivery charge" or "wires charge." The amount is the same either way.

Is TDSP the same as TDU?

Yes. TDSP (Transmission and Distribution Service Provider) and TDU (Transmission and Distribution Utility) are two names for the same thing — the regulated wires company that delivers electricity to your address. Oncor, CenterPoint Energy, AEP Texas, and TNMP are all both TDSPs and TDUs.

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