Don't Get Burned by Hidden Fees: Understanding Your TDU Delivery Charges in Texas

Many Texans opened their June electricity bills to an unwelcome surprise: a total TDU charge of $50 or more for a 1,000 kWh user, sparking widespread confusion. The r/Dallas and r/Houston forums are buzzing with frustration; users are pointing fingers at Oncor's new rates, effective June 1, 2026, for these "ridiculously high" charges. While the increase from Oncor's latest adjustment might only add a few dollars, the cumulative effect of these mandatory fees is substantial and now catching attention.

Understanding TDU Charges: It's Not Your REP

Your electricity bill has two major components. One covers the power itself, sold by your retail electric provider (REP). The other part pays for getting that power to your home. This second part comes from the Transmission and Distribution Utility (TDU). They own the poles, the wires, and the meters. They maintain the grid.

Oncor, CenterPoint, AEP, and TNMP are the major TDUs in Texas. These TDU charges are not set by your REP. They are approved by the Public Utility Commission of Texas. Your REP simply passes these fees directly to you. That extra $45 you might see for delivery on your June bill for 1,000 kWh? That’s from your TDU.

Why Did My Bill Jump $25 This Month?

Many Reddit users are reporting their June bills are up significantly, with TDU charges highlighted as the culprit. This is happening for two reasons. First, Oncor, which serves the Dallas area and beyond, adjusted its residential rates on June 1, 2026. This is a routine annual adjustment. For an Oncor customer, the fixed monthly charge went from $4.79 to $4.95. The variable per-kilowatt-hour rate increased from 4.3697 cents to 4.5050 cents.

This means a 1,000 kWh user saw their TDU charges increase by approximately $1.51 from the rate change alone. The second, larger reason for the sticker shock is that people are noticing the total TDU charge. For a 1,000 kWh Oncor customer, that's nearly $50 in delivery fees on top of their actual electricity usage. Summer usage means higher total bills, making these charges more apparent.

Don't Blame Your REP for TDU Charges (Yet)

Your REP does not profit from TDU charges. They collect them on behalf of the TDU. They are required to disclose these charges in your Electricity Facts Label (EFL). A REP that tries to hide these charges in tiny print is not acting illegally, but they are not acting in your best interest.

Many complaints online aren't about REP energy rates, but about the delivery charges appearing higher. This is a TDU issue, not a REP issue. However, some REPs advertise "all-inclusive" rates that bundle TDU charges. If you were on one of those plans, your REP might adjust your "energy rate" to reflect the TDU increase, making it look like their rate went up. Always check your EFL.

Finding TDU Charges on Your Bill and EFL

To understand your bill, find the specific section for "TDU Charges," "TDSP Charges," or "Delivery Charges." You will see two main components. There is a fixed monthly customer charge. For Oncor, this is currently $4.95 per month. Then there is a variable charge, calculated per kilowatt-hour (kWh) you use. For Oncor, this is 4.5050 cents per kWh.

These aren't optional fees. They are mandatory. They added a definite chunk to your June bill, whether from the slight increase in rates or simply from higher summer usage making the total more noticeable. Review your EFL closely. It spells out exactly what your REP will pass through.

When comparing new electricity plans on sites like PowertoChoose.org, always scroll down to the "TDU Pass-Through Charges" section and add those exact numbers to the advertised rate per kWh to get your true cost.