January 2026 Key Points
- •Lowest delivery rates: Oncor at 5.60¢/kWh + $4.23/month
- •Highest delivery rates: TNMP at 7.24¢/kWh + $7.85/month
- •Delivery = ~40% of your bill: These charges are unavoidable regardless of your provider
- •Next rate change: March 1, 2026
What Are TDU Delivery Charges?
TDU (Transmission and Distribution Utility) delivery charges are fees you pay to the utility company that owns and maintains the power lines, poles, transformers, and meters in your area. In Texas, these utilities are also called TDSPs (Transmission and Distribution Service Providers).
When you shop for electricity in Texas, you're choosing a retail electric provider (REP) like TXU, Reliant, or Rhythm Energy. But no matter which provider you choose, the electricity still travels through your local utility's wires. That's what you're paying for with TDU charges.
Your Electric Bill Breakdown
Important: Your retail electricity provider cannot mark up TDU charges. These fees are regulated by the Public Utility Commission of Texas (PUCT) and passed through to you at cost. The advertised rate you see on Power to Choose already includes delivery charges.
Current TDU Delivery Rates (January 2026)
These rates are effective as of September 1, 2025 and will be updated on March 1, 2026.
| Utility (TDU) | Service Area | Monthly Base | Per kWh | Cost @ 1,000 kWh |
|---|---|---|---|---|
| Oncor Electric Delivery | Dallas-Fort Worth, Killeen, Waco | $4.23 | 5.6032¢ | $60.26 |
| CenterPoint Energy | Houston Metro | $4.90 | 6.0009¢ | $64.91 |
| AEP Texas North | Abilene, San Angelo, Vernon | $3.24 | 5.9233¢ | $62.47 |
| AEP Texas Central | Corpus Christi, Laredo, McAllen | $3.24 | 6.0563¢ | $63.80 |
| Texas-New Mexico Power (TNMP) | Lewisville, Texas City, Galveston | $7.85 | 7.2370¢ | $80.22 |
| Lubbock Power & Light | Lubbock | $0.00 | 6.3120¢ | $63.12 |
Source: Public Utility Commission of Texas (PUCT). Rates effective September 1, 2025.
Why Do TDU Rates Differ by Area?
Each TDU has different infrastructure costs based on:
- Service area geography: Dense urban areas vs. spread-out rural regions
- Infrastructure age: Newer systems cost less to maintain
- Weather exposure: Coastal and hurricane-prone areas require more hardening
- Growth rate: Fast-growing areas like DFW require constant expansion
- Recent investments: Grid resiliency improvements after Winter Storm Uri
CenterPoint's Resiliency Plan
CenterPoint Energy (Houston) recently implemented a $2.9 billion Resiliency Plan, contributing to their 6.0¢/kWh delivery rate. This includes replacing thousands of wooden poles with steel poles and aggressive tree trimming to prevent storm-related outages.
TDU Rate Comparison: What This Means for Your Bill
Let's compare the same electricity plan across different TDU areas. Assume an energy rate of 8¢/kWh from your retail provider at 1,000 kWh usage:
| TDU Area | Energy Cost | Delivery Cost | Total Bill | All-in Rate |
|---|---|---|---|---|
| Oncor (Dallas) | $80.00 | $60.26 | $140.26 | 14.03¢/kWh |
| AEP North (Abilene) | $80.00 | $62.47 | $142.47 | 14.25¢/kWh |
| Lubbock P&L | $80.00 | $63.12 | $143.12 | 14.31¢/kWh |
| AEP Central (Corpus) | $80.00 | $63.80 | $143.80 | 14.38¢/kWh |
| CenterPoint (Houston) | $80.00 | $64.91 | $144.91 | 14.49¢/kWh |
| TNMP (Lewisville) | $80.00 | $80.22 | $160.22 | 16.02¢/kWh |
Bottom line: The same 8¢/kWh energy plan costs $140.26/month in Dallas (Oncor) but $160.22/month in Lewisville (TNMP)—a $20/month difference just from delivery charges.
When Do TDU Rates Change?
TDU delivery rates change twice per year:
- March 1: Rates typically decrease (lower demand after winter)
- September 1: Rates typically increase (higher summer usage)
The Public Utility Commission of Texas (PUCT) must approve all rate changes. Utilities submit proposed rates based on their operational costs, and the PUCT reviews them before approval.
Why Rates Have Been Rising
Since Winter Storm Uri in February 2021, Texas utilities have invested billions in grid hardening and weatherization. These costs are passed through to consumers via higher delivery charges. While painful in the short term, these investments aim to prevent future widespread outages.
Can You Avoid TDU Delivery Charges?
No. TDU charges are mandatory for anyone connected to the Texas power grid. However, there are a few things to understand:
- Switching providers doesn't help: Your TDU is determined by your physical location, not your retail provider. Moving from TXU to Reliant won't change your delivery charges.
- Rates are the same within a TDU area: Everyone in the Oncor service area pays the same delivery rate, whether you're in downtown Dallas or suburban Plano.
- Solar doesn't fully eliminate charges: Even with rooftop solar, you'll pay delivery charges for any grid electricity you use (nights, cloudy days, etc.).
What you CAN control: Your energy rate from your retail provider. Use our comparison tool to find the lowest energy rates in your area—that's where you can save money.
Compare Electricity Rates in Your Area
TDU charges are fixed, but energy rates vary by provider. Enter your ZIP code to see the lowest all-in rates (including delivery) available in your area.
Compare rates. Save hundreds.
Frequently Asked Questions
What's the difference between TDU and TDSP?
They're the same thing. TDU (Transmission and Distribution Utility) and TDSP (Transmission and Distribution Service Provider) are used interchangeably in Texas. The six TDUs/TDSPs are: Oncor, CenterPoint, AEP Texas North, AEP Texas Central, TNMP, and Lubbock Power & Light.
Why is my delivery charge higher than my energy charge?
At lower usage levels (under 500 kWh), delivery charges can exceed energy charges because of the fixed monthly base fee. This fee is the same whether you use 100 kWh or 1,000 kWh. High-usage customers pay relatively less in delivery as a percentage of their total bill.
Do all electricity providers charge the same TDU rates?
Yes. Retail electricity providers cannot mark up TDU charges. By law, they pass these fees through at cost. The rate you pay is set by the PUCT and is identical regardless of which provider you choose.
Why does TNMP have the highest delivery charges?
TNMP serves a smaller, more dispersed customer base compared to Oncor or CenterPoint. Fewer customers means infrastructure costs are spread across fewer households. Additionally, TNMP serves some coastal areas that require storm-hardened equipment.
How do I find out which TDU serves my address?
Enter your ZIP code in our comparison tool. We'll automatically detect your TDU and show you rates that include delivery charges for your area. You can also check your current electricity bill—the TDU name appears in the delivery charges section.