EST. 2013
Why Do I Have High Electricity Delivery Charges?
Published on Apr 8, 2024
Updated on May 21, 2025
Why Do I Have High TDSP Delivery Charges?
Electricity delivery charges on your Texas electricity bill are the fees collected by Transmission and Distribution Service Providers (TDSPs) or Transmission and Distribution Utilities (TDUs).
TDSP or TDU delivery charges pay for the physical delivery of electricity from the plant to your home. They also contribute to the upkeep of transmission poles, electricity wires, and other infrastructure associated with power delivery.
Wondering why your electricity delivery charges are increasing? Keep reading to find out the latest changes in electricity delivery charge rates across Texas. You can also visit our Texas electricity guide to find out more about the charges you might find on your Texas power bill.
Table of Contents
- What Are TDSP or TDU Electric Delivery Charges?
- What is a Transmission and Delivery Service Provider (TDSP) or TDU?
- What’s the Difference Between TDSP Charges and Energy Charges?
- Electricity Delivery Providers in Texas
- What Texas Transmission and Distribution Utility (TDU) or TDSP Services My Address?
- Why Are My TDU or TDSP Delivery Charges So High?
- Why Are My TDU or TDSP Delivery Charges Increasing?
What Are TDSP or TDU Electric Delivery Charges?
While you have the power to choose your Texas electricity plan, Transmission Distribution Service Provider (TDSP) charges are mandatory. What are TDU electric delivery charges? Well, TDSP, or delivery company charges, are the fees associated with servicing and delivering electricity to your meter from the generation source.
These charges are often referred to by other names, such as:
- TDSP charges
- TDU chargers
- Pass-through charges
- Poles and wires charges
The delivery company, sometimes called your Transmission and Distribution Utility (TDU), is the utility company that manages the energy grid in your area of the state. Remember, you have no choice in who your TDSP/TDU is.
What is a Transmission and Delivery Service Provider (TDSP) or TDU?
TDSP stands for Transmission and Distribution Service Provider. TDSPs are utility companies that own and operate electric grids in your area. The TDSP is responsible for maintaining lines, poles, and meters that deliver electricity to your home. You should call your TDSP to report things such as power outages or fallen lines. TDU (Transmission and Distribution Utility) is another commonly used name.
When it comes to electric transmission in Texas, TDSP companies such as CenterPoint, Texas-New Mexico Power, Oncor, and others are the owners, operators, and maintainers of the power lines and meters. Transmission and distribution utility companies are also responsible for other transmission equipment relating to the distribution of energy from the power plant to the final delivery point.
What’s the Difference Between TDSP Charges and Energy Charges?
For TDSP electric delivery charges, these come from your local utility. There will be a fixed charge that is paid on a monthly basis. There’s also a variable charge that appears in cents, and it is multiplied by the usage (kWh). The more electricity you use, the higher this part of the bill will be. Energy charges come from your Retail Electric Provider (REP).
This charge is based on the contract rate agreed to by the customer. It appears in cents, and it is multiplied by the usage (kWh). If you're out of contract, a variable month-to-month energy rate will be charged (usually higher than the contracted rate and can fluctuate each month). It is also multiplied by the usage (kWh). Some contracts also add a monthly base fee. Every electricity company can choose how they show these fees on a bill, which can be confusing. With your past electric providers, they may have lumped the fees together with your energy charge. The energy charge is the cost to produce your electricity and comes from your REP. You can always find all charges on the electricity facts label (EFL) of your current plan. Every plan offered by an electricity provider will include these charges.
| TDSP Charges | Energy Charges | |
|---|---|---|
| These come from your local utility. | These come from your Retail Electric Provider (REP). | |
| There will be a fixed charge that is paid on a monthly basis. | Charge is based on the contract rate agreed to by the customer. It appears in cents and it is multiplied by the usage (kWh). | |
| There's a variable charge—it appears in cents & it is multiplied by the usage (kWh). | If you're out of contract, a variable month-to-month energy rate will be charged (usually higher than the contracted rate and can fluctuate each month). It is also multiplied by the usage (kWh). | |
| The more electricity you use, the higher this part of the bill will be. | Some contracts also add a monthly base fee. |
Electricity Delivery Providers in Texas
Oncor Electric Delivery Charges
Oncor is the largest TDSP in Texas, serving over 10 million customers around the Dallas-Fort Worth area. Interested in more information about Oncor? Check out their website here.
CenterPoint Electric Delivery Charges
CenterPoint operates in the Houston area and serves more than 2 million customers. Interested in more information about CenterPoint? Check out their website here.
Texas New Mexico Power (TNMP) Electric Delivery Charges
Texas-New Mexico Power serves far west Texas with over 260,000 customers. Check out TNMP's website here.
American Electric Power (AEP) Delivery Charges
AEP Texas Central & AEP Texas North
AEP Texas Central serves most of south Texas and AEP Texas North serves a little bit of central and west Texas. Check out their website here.
As you can already tell, these charges are often referred to by other names, such as:
TDSP charges
TDU chargers
Pass-through charges
Poles and wires charges
What Texas Electricity Transmission Distribution Utility (TDU) or TDSP Services My Address?
Depending on where you live in Texas, your TDU or TDSP may be different. For instance, if you live in the Dallas/Fort Worth area, you depend on ONCOR for your electricity delivery. However, if you live in Houston, you may depend on CenterPoint for your electricity transmission and distribution. South Texans rely on American Electric Power (AEP) Texas Central, while parts of Central, North, and West Texas are serviced by AEP Texas North, Texas New Mexico Power, or Oncor.
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Why Are My TDU or TDSP Delivery Charges So High?
It's important to understand that the TDSP charges are tariff-based and approved by the Public Utilities Commission of Texas (PUCT). These charges include the cost of delivering electricity to your service address, reading your meter, and handling line outages and emergencies.
Fees are based on your meter readings, measuring the amount of electricity you use during a set period. Although there are fixed costs and other components associated with your TDSP charges, higher demands are generally the primary cause of high electricity delivery charges.
Energy Providers are billed after the TDSP Delivery Charges are assessed on a monthly basis. Because these charges are tariff-based, they apply to all customers based on classification, and they are not bypassable. Also, it is important to remember that the TDSP charges for you and your home are going to be the same amount regardless of who you have as your Retail Electric Provider (REP).
You will notice certain delivery charges are billed on a monthly basis, and some are billed on a usage basis (per kilowatt-hour). For this reason, the total electricity delivery charges amount will vary each month depending on your monthly kilowatt-hour usage. Of course, the more electricity you use, the higher your bill will be. Therefore, if you see high electricity delivery charges, this is why.
Why Are My TDU or TDSP Delivery Charges Increasing?
Starting September 1st, all Texas distribution utilities (also known as TDUs or TDSPs) are increasing their delivery charges. These charges are separate from the rate you pay for your electricity, and changes to these charges are unavoidable.
TDU delivery charges usually change twice a year. In September, electricity delivery charges usually increase, while March generally sees decreases in TDSP delivery rates. However, increases and decreases have been happening more frequently than usual recently.
Aside from this mandated increase, there may be other potential reasons for high electricity delivery charges:
1) Is your current meter faulty, or did you get a new smart meter? If you had an analog meter, there is a chance it was not accurately reading your demand and consumption. The new smart meters are equipped to more accurately read your demand and consumption.
2) The delivery company charges can be proportionately larger if you use less energy. Because there are fixed components, they are associated with the cost of delivering your electricity. It can cost more to deliver your electricity. It can also be more to serve your meter than to pay for the electricity itself.
anchorGet Started
Recent Electricity Delivery Charge Rate Changes in Texas
Delivery Charges as of 3/1/25
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 4.338¢ | -18.915% |
| ONCOR | $4.23 | 5.002¢ | -3.603% |
| TNMP | $7.85 | 5.705¢ | -9.329% |
| AEP-North | $3.21 | 5.130¢ | -6.31% |
| AEP-Central | $3.21 | 5.241¢ | -9.88% |
| Lubbock | $0.00 | 6.312¢ | -2.018% |
Delivery Charges as of 9/3/24
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 5.35¢ | +37.355% |
| ONCOR | $4.23 | 5.189¢ | +14.295% |
| TNMP | $7.85 | 6.292¢ | +24.890% |
| AEP-North | $4.79 | 5.475¢ | +20.994% |
| AEP-Central | $4.79 | 5.815¢ | +19.208% |
| Lubbock | $0.00 | 6.442¢ | N/A |
Delivery Charges as of 3/1/24
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 3.895¢ | -28.78% |
| ONCOR | $4.23 | 4.540¢ | -9.8% |
| TNMP | $7.85 | 5.038¢ | -16.67% |
| AEP-North | $4.79 | 4.525¢ | -11.72% |
| AEP-Central | $4.79 | 4.878¢ | -11.66% |
| Lubbock | $0.00 | 6.442¢ | N/A |
Delivery Charges as of 9/1/23
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 5.469¢ | +53.537% |
| ONCOR | $3.42 | 5.033¢ | +40.234% |
| TNMP | $7.85 | 6.046¢ | +32.355% |
| AEP-North | $4.79 | 5.126¢ | +30.765% |
| AEP-Central | $4.79 | 5.522¢ | +28.508% |
Delivery Charges as of 3/1/23
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 3.562¢ | -27.553% |
| ONCOR | $3.42 | 3.589¢ | -18.572% |
| TNMP | $7.85 | 4.568¢ | -16.569% |
| AEP-North | $4.79 | 3.920¢ | -16.569% |
| AEP-Central | $4.79 | 4.297¢ | -15.875% |
Delivery Charges as of 12/15/22
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 4.9167¢ | -0.580% |
| ONCOR | $3.42 | 4.4076¢ | 0% |
| TNMP | $7.85 | 5.4741¢ | 0% |
| AEP-North | $4.79 | 4.6985¢ | 0% |
| AEP-Central | $4.79 | 5.1079¢ | 0% |
Delivery Charges as of 9/1/22
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 4.9454¢ | +30.142% |
| ONCOR | $3.42 | 4.4076¢ | +13.285% |
| TNMP | $7.85 | 5.4741¢ | +15.795% |
| AEP-North | $5.88 | 4.6985¢ | +14.435% |
| AEP-Central | $5.88 | 5.1079¢ | +12.974% |
Delivery Charges as of 6/6/22
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 3.8000¢ | -1.357% |
| ONCOR | $3.42 | 3.8907¢ | 0% |
| TNMP | $7.85 | 4.7274¢ | 0% |
| AEP-North | $5.88 | 4.1058¢ | 0% |
| AEP-Central | $5.88 | 4.5213¢ | +0.037% |
Delivery Charges as of 3/1/22
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 3.8523¢ | -6.345% |
| ONCOR | $3.42 | 3.8907¢ | -6.345% |
| TNMP | $7.85 | 4.7274¢ | -8.387% |
| AEP-North | $5.88 | 4.1058¢ | -0.092% |
| AEP-Central | $5.88 | 4.5196¢ | +0.048% |
Delivery Charges as of 10/16/21
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.39 | 4.527¢ | -1.648% |
| ONCOR | $3.42 | 4.1543¢ | 0% |
| TNMP | $7.85 | 5.1602¢ | -0.270% |
| AEP-North | $5.88 | 4.1096¢ | -0.796% |
| AEP-Central | $5.88 | 4.5174¢ | -0.725% |
Delivery Charges as of 9/1/21
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) |
|---|---|---|
| Centerpoint | $4.39 | 4.6029¢ |
| ONCOR | $3.42 | 4.1543¢ |
| TNMP | $7.85 | 5.1742¢ |
| AEP-North | $4.79 | 4.1426¢ |
| AEP-Central | $4.79 | 4.5504¢ |
There is nothing consumers can do to lower their delivery charges. They are a necessary expense to ensure our electricity system operates correctly.
All Things Considered, Don't Stress Over Increases
At the end of the day, a higher delivery charge may increase your effective rate a bit. And sure, no one wants to pay too much for anything, especially electricity.
However, a delivery charge increase is a sign that investments have recently been made to strengthen our electricity infrastructure. And Energy Ogre members have nothing to worry about, considering they’re already in the most cost-effective plan possible.
We can also analyze your bill to make sure all fees are correct. We make sure the provider didn't mark up the cost of delivery company charges that weren't accounted for in your bill analysis. Note, it is completely legal for retail electric providers to mark up these charges; however, they must disclose this markup in the EFL.
Not an Energy Ogre member yet? Want the best electricity rates in Texas? Check out how to use our free electricity savings calculator below and learn more about our service here.
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