What is a Transmission and Delivery or TDU Charge?
Transmission and delivery charges are the fees assessed by each of the six (6) utilities within the ERCOT region: Centerpoint, Oncor, AEP Central, AEP North, TNMP, and Lubbock Power and Light. These rates are regulated by the Public Utilities Commission of Texas and approved months in advance of the effective dates. The fees collected by the utilities are used for maintaining the lines and poles to deliver electricity to your home or business.
For those of us affected by Hurricane Beryl in the Centerpoint area, the current rates were set prior to Beryl’s landfall, and are not a result of the hurricane damage plaguing the Centerpoint service area.
TDU Charges vs Electricity Market
Residential electricity billing invoices have two major components: the energy charge and the transmission and delivery charge.
Energy charges are subject to the market and are the portion of the bill consumers can choose. This is the rate that Texas Power Agents works to secure for our customers.
Transmission and delivery rates are the same for every customer in the utility. Each customer in the utility pays the same meter fee and rate per kWh and is billed based on how many kWh are used that billing cycle. Utilities do not bill consumers directly. Retail electricity providers are required to pass through these charges to customers, but can not change them.
Scheduled Rate Increases for Utilities
Utilities adjust their transmission and delivery rates typically two times per year. The rates increase in September and decrease in March. The amount of these changes vary, as illustrated in the chart below. Your energy rate will not change when the transmission and delivery rates change, but your average price per kWh will. Currently, you will see an increase in the amount of the difference between the March 2024 rate and the September 2024 rate. For example, Centerpoint customers will see an increase of about 1.5 cents per kWh to their average price per kWh paid. These changes will be applied to any current billing cycle that contains dates in September and will continue until the next adjustment.
To interpret the chart below, locate your utility. The Consumption Charge is the rate that is multiplied by the number of kWh used that billing cycle. The Monthly Base Charge is the meter fee that is charged each billing cycle. It may or may not be itemized separately, depending on how your provider prepares their billing invoices. The Approx. Adder is the estimate of how much you should add to your energy rate to have an idea of how much you might pay per kWh. This is an estimate based upon 2000 kWh used and includes the Consumption Charge and Monthly Base Charge. It does not include taxes and other fees. This estimate could go up or down slightly depending on usage because of the averaging of the base charge.
Recently, Centerpoint Energy announced Community Open House dates. If you would like to attend a Community Open House in your area, you can find more information HERE.
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