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Texas electricity fees — plain english

Every fee on your Texas electricity bill, explained

TDU delivery charge, TDSP fee, base charge, energy charge — your bill is full of line items that sound like a foreign language. Here's what each one actually means, who sets it, and which ones you can and can't shop around.

See your own bill's breakdown Compare real plan costs

The two charges on every bill

One you can shop for. One you can't.

Energy charge

What you pay your retail electric provider (REP) — Gexa, TXU, Reliant, and dozens of others — for the actual electricity. This is the part that varies by plan, has bill credits and promotional rates, and is the only piece worth comparison-shopping.

Delivery charge (TDU / TDSP)

What you pay the utility that owns the physical wires to your house — Oncor, CenterPoint, AEP Texas, or TNMP. Set by state regulators, identical across every REP in your area, and completely non-negotiable.

Who actually charges you

Texas's four delivery utilities

Oncor delivery charge

Serves: Dallas–Fort Worth and most of North, Central, and West Texas

The largest delivery territory in the state — if your REP options include names like TXU, Gexa, or Reliant for a DFW-area address, Oncor is almost always the wire owner behind them.

CenterPoint Energy delivery charge

Serves: Greater Houston and the Gulf Coast

Covers Houston, Baytown, Galveston, Sugar Land, and most of the surrounding metro.

AEP Texas delivery charge

Serves: Corpus Christi, the Coastal Bend, the Rio Grande Valley, and Laredo

Splits into AEP Texas Central and AEP Texas North on paper, but shows up as one "AEP Texas" territory on most plan listings.

TNMP delivery charge

Serves: Scattered pockets — parts of the South Plains near Lubbock, and small coastal and Panhandle areas

The smallest and most fragmented of the four — fewer REPs actively market here, so shop carefully.

Delivery rates are set by PUCT tariff filings and change periodically for everyone in a territory — they're not something any REP controls. Our Find Plans tool bakes your area's current delivery cost into every total we show, so you're never comparing a teaser energy rate against a real all-in one.

Other charges you might see

The rest of the bill

Base charge

A flat monthly fee some plans charge regardless of usage, on top of the per-kWh energy rate. Not all plans have one — it’s worth checking the EFL.

PUCT assessment & gross receipts tax

Small state-mandated fees that fund the Public Utility Commission and municipal franchise agreements. A few dollars a month, present on every Texas bill regardless of REP.

Minimum usage fee

A penalty (not a credit) some plans charge if you use less than a set threshold — the opposite of a bill credit. Read the EFL closely; this is often buried in fine print.

Bill credit (and the cliff behind it)

Many plans advertise a low rate that only applies if you hit an exact usage threshold — often 1,000 kWh. Fall one kWh short and you lose the entire credit for that cycle, sometimes swinging your bill by $75–$150. This is the exact problem HitMyCredit tracks automatically.

What you can actually control

Delivery charges are fixed. Missing your credit isn't.

You can't negotiate your TDU rate — but you can make sure you never miss a usage-based bill credit again. HitMyCredit tracks your daily kWh and alerts you before you fall short.

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Texas electricity fees — FAQ

What is a TDU delivery charge in Texas?

The TDU (Transmission and Distribution Utility) delivery charge pays for the poles, wires, transformers, and meters that physically carry electricity to your home — separate from the energy itself. It’s regulated by the Public Utility Commission of Texas (PUCT), not set by your retail electric provider (REP), and every REP operating in your area pays and passes through the same rate.

What is a TDSP fee?

TDSP (Transmission and Distribution Service Provider) is the older/formal name for the same thing as a TDU — you’ll see both terms used interchangeably on bills and Electricity Facts Labels (EFLs). It’s not a separate fee on top of the delivery charge; it is the delivery charge.

Can I choose my TDU or avoid the delivery charge?

No. Your TDU is fixed by your physical address — you can only choose your REP (the company that sells you the energy itself). The delivery charge is unavoidable and identical across every plan available at your address, so it should never be the reason one plan looks cheaper than another; the energy rate and any bill credit terms are what actually differ.

Why did my bill go up even though I didn’t use more electricity?

A few common causes: your plan’s promotional rate expired and rolled to a higher variable rate, you fell just short of a usage-based bill credit threshold (common on plans requiring 1,000+ kWh), or TDU delivery rates were adjusted (these change periodically and apply to everyone in that territory regardless of REP). Upload your bill to our free Bill Analyzer to see exactly which of these applies to you.

What’s the difference between the delivery charge and the energy charge?

The energy charge is what you pay your REP for the actual electricity — this is the part REPs compete on with different rates, terms, and credits. The delivery charge is what the REP collects on behalf of the TDU for transporting that electricity to you; it’s pass-through, non-negotiable, and the same no matter which REP you pick.