All You Need to Know About TDU Delivery Charges
| Energy Deregulation
All You Need to Know About TDU Delivery Charges
You might assume that once you sign up for an electricity plan, all you have to do is flip a switch, and voilà – let there be light! But have you ever wondered who’s working behind the scenes to make sure that electricity makes it from the power plant to your home sweet home? That’s where TDUs come into play.
What in the World Is a TDU?
TDU is short for Transmission and Distribution Utility. Fancy name, but their job’s pretty straightforward: they’re the folks responsible for moving electricity from the power plant to your doorstep. Those poles and wires you see running up and down the road? That’s all TDU territory.
They don’t just haul energy, though. They also read your meter every month and come to the rescue when your power goes out. Whether it’s storming cats and dogs or you’ve got a squirrel with poor decision-making skills, TDUs are the ones who keep the lights on.
Meet the TDUs of Texas
In Texas, we’ve got five main TDUs working in the deregulated electricity market.
CenterPoint Energy: Covers Houston and nearby areas. Got an outage? Dial 1-800-332-7143.
Oncor Electric Delivery: Takes care of Dallas/Fort Worth and beyond. Outage line: 1-888-313-4747.
AEP Texas Central: Handles Corpus Christi, McAllen, Laredo, and such. Call 1-866-223-8508 for outages.
AEP Texas North: Serves places like Abilene, San Angelo, and Vernon. Same outage number: 1-866-223-8508.
Texas New Mexico Power (TNMP): Scatters across the state from Lewisville to League City. For outages, ring 1-888-866-7456.
Each TDU has its own territory, so no matter who your electricity provider is, the TDU depends on where you live.
What Are TDU Delivery Charges?
Your electricity bill isn’t just one number. It’s actually made up of two parts.
Energy charges
That’s the cost of generating electricity, courtesy of your Retail Electric Provider (REP).
Delivery charges
This is where your TDU comes in, covering the cost to keep the poles, wires, and transformers in tip-top shape. These delivery charges, also called “pass-through charges,” are set by the Public Utility Commission of Texas (PUCT). They go straight to the TDUs, so your REP doesn’t mark them up.
How Are TDU Charges Calculated?
Here’s how TDUs calculate pass-through charges.
First, you have a fixed monthly charge. This is a flat fee, usually $3 to $10, no matter how much energy you use.
Then you have a variable charge of a few cents per kWh (2¢-5¢), based on how much electricity you use. The more you use, the higher that variable charge will be.
How Often Do These Charges Change?
TDU charges aren’t set in stone. The PUCT reviews them throughout the year, and they can shift depending on market conditions. So, if you see a little wiggle room in your bill, that might be why.
The Impact of TDU Charges
Here’s the thing: these delivery charges are fixed costs spread across all the electricity you use. That means the more juice you consume, the lower the delivery cost per kilowatt-hour. But don’t go cranking up the AC just yet – those energy charges can still bite!
How to Save on TDU Delivery Charges
If you’re looking to save a few bucks, here are two tried-and-true tips.
Shop around for an REP with lower rates. Even though delivery charges are fixed, energy rates can vary.
Next, you can cut back on your energy use, since less electricity consumed means smaller delivery charges.
Some easy ways to use less? Turn off lights when you leave the room, upgrade to energy-efficient appliances, tweak your thermostat during off-peak hours, and seal up drafty windows and doors.
FAQ
Why are energy and delivery charges different on my electric bill?
Energy charges cover making the electricity – that’s your Retail Electric Provider (REP). Delivery charges, on the other hand, pay for hauling that power to your house – that’s your Transmission and Distribution Utility (TDU). It’s a “pass-through” fee that keeps the poles and wires in good working order.
How do I find out which TDU services my area?
Check the list above to see what TDU is in your neck of the woods. Each TDU has its own turf, so you’ll know exactly who’s working the grid in your area.
How can I save on TDU charges?
Shop around for a Retail Electric Provider (REP) with better rates, or cut back on how much juice you use. Turn off lights, tweak that thermostat, and you’ll see those charges shrink faster than ice cream on a hot Texas day!