TDU Charge — Texas Electricity Delivery Fee
Texas Electricity Glossary
A TDU charge (Transmission and Distribution Utility charge) is the regulated fee for physically delivering electricity to your Texas home. It covers the cost of the high-voltage transmission lines, local distribution lines, transformers, poles, smart meters, and the crews that restore power after outages. In Texas, four TDUs serve the deregulated ERCOT market — Oncor (Dallas/Fort Worth), CenterPoint Energy (Houston), AEP Texas (West and Central Texas), and TNMP — each with different rates approved by PUCT. At 1,000 kWh they add roughly $55 to $73 per month to your total electricity bill, depending on which utility serves your address.
Two Components of a TDU Charge
Every TDU charge has two parts:
- Monthly customer charge — a fixed fee regardless of usage (typically $3–8/month)
- Per-kWh delivery rate — a variable charge based on actual consumption (typically 3.8–5.5¢/kWh)
Both appear on your electricity bill, though your REP may itemize them separately or roll them into an all-in rate.
TDU Charge Comparison by Territory
| TDU | Primary Area | Monthly Customer Charge | Per-kWh Rate | Total at 1,000 kWh |
|---|---|---|---|---|
| CenterPoint (lowest) | Houston, Katy, Sugar Land | ~$4.90 | ~5.00¢ | ~$54.71/mo |
| AEP Texas North | Abilene, San Angelo, Lubbock region | ~$3.24 | ~5.53¢ | ~$58.55/mo |
| AEP Texas Central | Corpus Christi, McAllen, Laredo | ~$3.24 | ~5.69¢ | ~$60.14/mo |
| Oncor | Dallas, Fort Worth, Arlington, Plano | ~$4.06 | ~6.03¢ | ~$64.36/mo |
| TNMP (highest) | Texas City, League City, Lewisville | ~$7.85 | ~6.47¢ | ~$72.52/mo |
Figures are the all-in residential delivery cost at 1,000 kWh per the PUCT's official residential rate summary for August 2026 (CenterPoint reflects its August 15 tariff). Tariffs update on March 1 and September 1 each year — check PUCT filings or a plan's EFL for the precise current figures. Full TDU comparison →
Why TDU Charges Matter When Comparing Plans
Plan comparison sites typically show energy-only rates — the REP's per-kWh charge — without the TDU delivery component. The identical plan at identical usage costs about $18/month more in League City (TNMP territory, ~$72.52 at 1,000 kWh) than in Houston (CenterPoint territory, ~$54.71) purely because of where the meter sits. TexasPowerCost.com states your ZIP code's TDU delivery charge alongside the energy estimate, so you can see the all-in figure — while ranking plans on energy-supply cost, since the delivery charge is identical for every provider in your ZIP and therefore cannot change which plan is cheapest.
Related Terms
- TDSP — same as TDU; both terms appear on Texas electricity bills
- EFL — shows the TDU pass-through component of each plan's rate
- Effective Rate — a true all-in rate that includes TDU charges
- Texas TDU Delivery Charges Guide — full comparison of all four TDUs
Frequently Asked Questions
What is a TDU charge on my Texas electricity bill?
A TDU (Transmission and Distribution Utility) charge is the regulated fee for physically delivering electricity from the grid to your home. It covers the cost of maintaining power lines, transformers, poles, smart meters, and outage response. In Texas, four TDUs serve the deregulated ERCOT market: Oncor (Dallas/Fort Worth), CenterPoint Energy (Houston), AEP Texas (West and Central Texas), and TNMP (smaller markets).
Can I lower my TDU charge by switching electricity providers?
No. Your TDU charge is determined by your physical address and is a regulated monopoly rate. Switching REPs does not change your TDU or its delivery charges. The only way to change your TDU charge is to move to an address served by a different TDU.
How much is the TDU charge in Texas?
At 1,000 kWh/month per the PUCT's official August 2026 residential rate summary, TDU delivery charges are approximately: CenterPoint ~$54.71/month, AEP Texas North ~$58.55/month, AEP Texas Central ~$60.14/month, Oncor ~$64.36/month, and TNMP ~$72.52/month. These figures include a fixed monthly customer charge plus a per-kWh delivery rate and are updated by PUCT tariff filings that take effect on March 1 and September 1.