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Transmission and distribution utility (TDU) charges are the monthly fees your utility company collects for delivering electricity. Every consumer pays these fees in Texas’ deregulated market, regardless of which retail electricity provider they choose or where they live. TDU fees vary by utility and are updated twice a year—on March 1 and September 1—to reflect the current cost of operating the power grid.
Unlike retail electricity providers that set their own energy rates, TDU charges are regulated by the Public Utility Commission of Texas (PUCT). 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.
While another line item on your bill isn’t fun, TDU charges are essential to keep the grid running safely and reliably. They support:
In short, TDU fees enable utilities to safely deliver electricity to your home or business.
Multiple utilities operate across Texas, each with its own TDU charges. Most include a fixed monthly base charge plus a per-kilowatt-hour (kWh) usage charge. Here are the current fees:
Utility company |
Monthly base charge |
Usage charge |
Total delivery (1,000 kWh) |
|---|---|---|---|
| AEP Texas North | $3.24 | 5.9000¢/kWh | $62.24 |
| AEP Texas Central | $3.24 | 6.0000¢/kWh | $63.24 |
| CenterPoint Energy | $4.90 | 5.7889¢/kWh | $62.79 |
| Oncor Electric Delivery | $4.23 | 5.6032¢/kWh | $60.26 |
| Texas-New Mexico Power (TNMP) | $7.85 | 7.2055¢/kWh | $79.91 |
These fees are accurate as of September 1, 2025, and will update again on 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, see our Texas energy bill guide.
You’ll typically see 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).
No. TDU charges are mandatory for all customers in deregulated parts of Texas.
TDU rates are reset each March 1 and September 1. Increases often reflect higher maintenance needs, system upgrades, or storm-related repair costs.
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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