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Transmission and distribution utility (TDU) charges are monthly fees collected by your utility company for delivering electricity to your home or business. Every customer in Texas’ deregulated market pays these fees, regardless of which retail electricity provider they choose. TDU fees vary by utility and update twice a year—on March 1 and September 1—to reflect the current cost of operating the power grid.
Five major utility companies operate across Texas, each with its own TDU charges. Utility delivery fees typically include three components:
Here are the current fees from each major utility company:
Utility company |
Monthly base charge |
Usage charge |
Metering charge |
Total delivery (1,000 kWh) |
|---|---|---|---|---|
| AEP Texas North | $1.27 | 5.9 ¢/kWh | $1.97 | $62.30 |
| AEP Texas Central | $1.27 | 5.9 ¢/kWh | $1.97 | $61.83 |
| CenterPoint Energy | $2.11 | 4.9993 ¢/kWh | $2.79 | $54.89 |
| Oncor Electric Delivery | $1.43 | 5.6183 ¢/kWh | $2.80 | $60.41 |
| Texas-New Mexico Power (TNMP) | $1.13 | 7.2370 ¢/kWh | $6.72 | $80.59 |
Note: Your monthly base charge and metering charge are often bundled into one price on your energy bill. These rates are accurate as of March 1, 2026.
Reminder: Your total electric bill has three major components: energy charges from your provider, TDU delivery charges, and taxes/fees. For a full walkthrough, review our Texas energy bill guide.
TDU charges are regulated by the Public Utility Commission of Texas (PUCT). The PUCT is a state agency that regulates Texas’ electric utilities, overseeing infrastructure, consumer protection, and market rules. Utilities propose delivery fees based on grid operating costs, and the PUCT reviews and approves them. This helps ensure customers pay a reasonable price each time the charges are updated.
ChooseTexasPower.org is not affiliated with Power to Choose, powertochoose.org, or the PUCT.
While no one wants another charge on their energy bill, TDU charges are essential to keep the power grid running safely and reliably. They support:
You’ll typically find TDU charges near the top of your electric bill in the account summary. They’re also listed on every plan’s Electricity Facts Label (EFL), which you can conveniently find on our marketplace under “plan documents.”
No. TDU charges are mandatory for all customers in deregulated parts of Texas.
Increases in TDU charges are often due to higher maintenance needs, system grades, or storm-related repair costs. If you noticed that your TDU fees are higher, they may have been increased during the scheduled price reset on March 1 or September 1.
If your provider changes but your utility stays the same, your TDU fees won’t change. If you move to an area served by a different utility, your TDU fees will update to that utility’s rates.
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