Key points
- Delivery is charged by the utility serving your address, separately from the provider's energy pricing.
- Monthly cost depends on a fixed charge plus usage. Delivery is not a fixed percentage of every bill.
- AEP Central and North have different charges. Use your bill to identify your service area.
- The comparison below uses a published September 30 schedule, checked October 2. Check your selected offer and bill for applicable charges.
What are TDU delivery charges?
A transmission and distribution utility (TDU), also called a transmission and distribution service provider (TDSP), maintains the wires, poles and meters in its service territory. A retail provider such as Gexa, TXU or Reliant sells the electricity plan and sends your bill.
Changing retail providers does not change the utility serving your address. Delivery may be itemized or included in a bundled price; read the Electricity Facts Label (EFL), which lists plan pricing and conditions. Do not add delivery charges again to an advertised all-in average price that already includes them.
Residential TDU delivery-rate comparison
Source: Frontier residential schedule, updated September 30, 2026. These are standard recurring residential charges, not commercial tariffs or a quote for your address.
| Utility / service area | Monthly base | Cents per kWh | Delivery at 1,000 kWh |
|---|---|---|---|
| Oncor Dallas–Fort Worth and other Oncor areas | $4.06 | 6.0295¢ | $64.36 |
| CenterPoint Energy Houston-area CenterPoint territory | $4.90 | 6.5333¢ | $70.23 |
| AEP Texas Central Corpus Christi, Laredo and other Central areas | $3.24 | 5.6898¢ | $60.14 |
| AEP Texas North Abilene and other North areas | $3.24 | 5.5751¢ | $58.99 |
| Texas-New Mexico Power (TNMP) Selected North, Gulf Coast and West Texas areas | $7.56 | 7.7710¢ | $85.27 |
| Lubbock Power & Light Lubbock service territory | $0.00 | 6.3120¢ | $63.12 |
The schedule publication date is not the effective date of every tariff component. City-specific charges, exemptions, billing dates and nonrecurring fees can affect your bill. Former Oncor customers in the McAllen/Mission area can have different AEP Central surcharge treatment.
CenterPoint source check: 4Change's September 29 schedule lists 6.4130¢/kWh, while Frontier's September 30 schedule lists 6.5333¢/kWh. The current CenterPoint tariff supports 6.5333¢/kWh: its residential base and applicable riders total $0.065333/kWh, with the distribution cost recovery rider effective for scheduled meter reads on or after September 30, 2026 (sheet 6.14.10, page 3). Check the meter-read period on your bill; an earlier summary can describe a different effective period.
How to calculate delivery charges
Monthly base + (cents per kWh × usage ÷ 100) = delivery cost before any additional charges or adjustments. For CenterPoint at 1,000 kWh: $4.90 + (6.5333 × 1,000 ÷ 100) = $70.23 when rounded.
Illustrative total at an 8¢ energy charge
Assume 1,000 kWh and a hypothetical energy-only charge of 8¢/kWh ($80). This is not a currently available plan quote. Taxes, provider base charges, credits and other fees are excluded.
| Utility | Energy | Delivery | Illustrative subtotal | Average cents/kWh |
|---|---|---|---|---|
| Oncor | $80.00 | $64.36 | $144.36 | 14.44¢ |
| CenterPoint Energy | $80.00 | $70.23 | $150.23 | 15.02¢ |
| AEP Texas Central | $80.00 | $60.14 | $140.14 | 14.01¢ |
| AEP Texas North | $80.00 | $58.99 | $138.99 | 13.90¢ |
| Texas-New Mexico Power (TNMP) | $80.00 | $85.27 | $165.27 | 16.53¢ |
| Lubbock Power & Light | $80.00 | $63.12 | $143.12 | 14.31¢ |
Why rates differ and when they change
Each utility has its own approved tariff, including base charges and riders for items such as transmission, distribution and cost recovery. March and September are common update periods, but other tariff changes can take effect during the year. A fixed-rate retail contract does not necessarily freeze regulated delivery charges.
Check the tariff and meter-read period on your bill when a charge changes. The utilities' different costs and service areas make a statewide “cheapest utility” label less useful than the applicable rate at your own address.
Frequently asked questions
Can switching providers avoid delivery charges?
No. Switching changes your retail plan, not the utility network at your address. Compare the complete price, since some plans bundle delivery and others show it separately.
Why can delivery exceed the energy charge?
The fixed monthly charge has a larger effect per kWh when usage is low. The relationship also depends on your energy rate and any credits; there is no universal 40% delivery share.
How do I find my TDU?
Look for the delivery utility on your bill or verify service by address. A ZIP code or city can include more than one utility territory.
Are these charges for every Texas customer?
No. This table covers the listed residential delivery territories. Municipal utilities, cooperatives, commercial accounts and special tariff situations can follow different schedules.
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