EST. 2013
What Are Electricity Delivery Charges and Can I Avoid Them?
Published on Apr 8, 2024
Updated on Mar 6, 2026
If you live in Texas and have ever looked closely at your monthly electric bill, you’ve likely experienced a moment of “bill shock.” While you know you have to pay for the energy you use, you might be wondering about the other fees tacked onto your statement—specifically, your electricity delivery charge.
In Texas, you have the power to choose your Retail Electric Provider (REP), but delivery charges are mandatory and unavoidable. In this guide, we’ll explain exactly what an electricity delivery charge is, why these rates fluctuate, who sets them, and how you can soften their impact on your wallet.
Table of Contents
- What Is an Electricity Delivery Charge?
- Energy Charge vs. Electricity Delivery Charge: What’s the Difference?
- Who Are the Electricity Delivery Companies in Texas?
- Why Is My Electricity Delivery Charge So High?
- Current Texas Electricity Delivery Charge Rates
- How to Minimize the Impact of Rising Delivery Charges
- Frequently Asked Questions (FAQs)
- How Energy Ogre Can Help You Manage Your Electricity Costs
What Is an Electricity Delivery Charge?
Simply put, an electricity delivery charge is the fee you pay to physically transport electricity from a power plant, across the grid's network of poles and wires, and directly to your home's meter.
Depending on your REP, this charge might show up on your bill under a few different names, including:
- Pass-through charges
- Delivery charges
- TDU or TDSP charges
TDU and TDSP Explained
When researching your electricity delivery charge, you will frequently see the acronyms TDSP (Transmission and Distribution Service Provider) and TDU (Transmission and Distribution Utility). Both of the acronyms represent the same thing. They are the local utility companies that own and operate the electric grid in your specific area.
They are responsible for maintaining the power lines, reading your meter, and restoring power during outages. It's important to know that TDSP/TDU rates are highly regulated and must be approved by the Public Utility Commission of Texas (PUCT).
Energy Charge vs. Electricity Delivery Charge: What’s the Difference?
To understand your bill, you need to understand the two main components of your electricity costs: the energy charge and the delivery charge.
| Energy Charge | Electricity Delivery Charges |
|---|---|
Who bills it? Comes from your Retail Electric Provider (REP). | Who bills it? Comes from your local utility company (TDSP/TDU). |
| What is it? The cost to generate and purchase the actual electricity you consume. | What is it? The cost to maintain the grid and deliver the electricity to your home. |
| Can you choose? Yes. You can shop around for the best contract rate (cents per kWh). | Can you choose? No. Your provider is strictly determined by your home's address. |
| How is it calculated? Based on the contract rate agreed upon when you signed up for your plan. | How is it calculated? Includes a fixed monthly fee plus a variable charge multiplied by your usage (kWh). |
Who Are the Electricity Delivery Companies in Texas?
Because you cannot choose your TDSP, your electricity delivery charge is entirely dependent on where you live. Texas has several main delivery providers:
- Oncor Electric Delivery: The largest TDSP in Texas, serving over 10 million customers primarily in the Dallas-Fort Worth Metroplex and surrounding areas.
- CenterPoint Energy: Operates mainly in the greater Houston area, serving more than 2 million customers.
- Texas-New Mexico Power (TNMP): Services areas of far West Texas, the Gulf Coast, and parts of North Texas.
- American Electric Power Texas (AEP): Split into two regions—AEP Texas Central (covering most of South Texas) and AEP Texas North (covering parts of Central and West Texas).
- Lubbock Power & Light (LP&L): The newest addition to the deregulated ERCOT market, servicing the Lubbock area.
Why Is My Electricity Delivery Charge So High?
If you feel like your delivery charges are through the roof, it helps to understand how they are calculated. Your TDSP bills your REP (who then passes the cost to you) using two components:
- A Fixed Monthly Fee: This is a flat rate charged every billing cycle just for having an active meter connected to the grid, regardless of how much power you use.
- A Variable Charge (Per kWh): This is a cents-per-kilowatt-hour fee.
The primary reason your electricity delivery charge is high is due to high electricity consumption. Because the variable charge is multiplied by your usage, running your air conditioner all summer long won't just increase your energy charge—it will heavily inflate your delivery charge, too. To make it easier to understand, I’ll list out the calculation process below.
- Customer uses 1000 kWh during their billing cycle.
- 1000 kWh is multiplied by the cents per kWh amount in the electricity provider contract.
- 1000 kWh is also multiplied by the PUCT-decided cents per kWh delivery charge.
- Those values are added together.
- Any extra fees like base charges, tax, etc. are added on as well.
- Then you have your total amount due.
If your home recently upgraded from an older analog meter to a new smart meter, the new equipment reads your consumption much more accurately, which can sometimes result in higher (and lower) bills than you are used to.
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Current Texas Electricity Delivery Charge Rates
The Public Utility Commission of Texas (PUCT) typically approves changes to TDU delivery charges at least twice a year—usually around March 1st and September 1st. Below are the recent rates as of March 2026:
| TDSP / Utility Area | Fixed Charge (Per Month) | Variable Charge (Per kWh) |
|---|---|---|
| CenterPoint | $4.90 | 4.9993¢ |
| ONCOR | $4.23 | 5.6183¢ |
| TNMP | $7.85 | 7.2739¢ |
| AEP-North | $3.24 | 5.9262¢ |
| AEP-Central | $3.24 | 6.0592¢ |
| Lubbock (LP&L) | $0.00 | 6.312¢ |
Note: Rates are subject to change based on PUCT approvals. Always check your Electricity Facts Label (EFL) for the most current data.
How to Minimize the Impact of Rising Delivery Charges
While it is impossible to avoid your local utility's electricity delivery charge, you can take steps to lower your overall monthly bill.
- Lower Your Overall Consumption: The most effective way to lower your delivery charge is to use less electricity. Because the bulk of the delivery charge is variable (cents per kWh), lowering your usage directly shrinks the delivery fee. Simple steps like adjusting your thermostat, upgrading to LED bulbs, and improving your home's insulation can work wonders.
- Shop for a Better Energy Rate: You can't control the TDSP, but you can control your Retail Electric Provider. By finding a plan with a lower energy charge, you can offset the rising costs of delivery fees.
Frequently Asked Questions (FAQs)
Can I choose a different company for my electricity delivery charge?
No. Your Transmission and Distribution Service Provider (TDSP or TDU) is determined entirely by your service address. You can choose who sells you your electricity (your REP), but you cannot choose who delivers it.
Does my Retail Electric Provider (REP) profit from the delivery charge?
No. Electricity delivery charges are "pass-through" costs. This means your retail provider bills you for the exact amount charged by the TDSP, and then passes that money directly to the utility company to fund grid maintenance.
Are delivery charges included in my advertised electricity rate?
Usually, yes. But to be absolutely certain, it's always best to check the plan's Electricity Facts Label (EFL) before enrolling. That document will show you exactly how delivery charges impact your estimated monthly costs. If you’ve looked at your EFL and are still confused, contact your provider, and they will give you the exact breakdown.
How Energy Ogre Can Help You Manage Your Electricity Costs
While you can't avoid TDU electricity delivery charges, you do have complete control over the energy rate you pay. That’s where Energy Ogre steps in to help.
We do the heavy lifting for you by analyzing thousands of available electricity plans in Texas, reading the fine print on the Electricity Facts Labels (EFLs), and mathematically determining the most cost-effective plan for your home’s usage tendencies. By ensuring you are always locked into a great energy rate, we help offset those unavoidable delivery fees—lowering your total out-of-pocket costs each month.
Stop guessing and start saving.
Historic Electricity Delivery Charge Rate Changes in Texas
Delivery Charges as of 9/1/25
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.90 | 5.7889¢ | ~ +29.8% |
| ONCOR | $4.23 | 5.6032¢ | ~ +12% |
| TNMP | $7.85 | 7.2055¢ | ~ +17.1% |
| AEP-North | $3.24 | 5.9¢ | ~ +12% |
| AEP-Central | $3.24 | 6.1¢ | ~ +13.6 |
| Lubbock | $0.00 | 6.312¢ | 0% |
Delivery Charges as of 8/5/25
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.90 | 4.460¢ | 0% |
| ONCOR | $4.23 | 5.002¢ | -2.38% |
| TNMP | $7.85 | 6.152¢ | 0% |
| AEP-North | $3.21 | 5.264¢ | +2.61% |
| AEP-Central | $3.21 | 5.370¢ | +2.56% |
| Lubbock | $0.00 | 6.312¢ | 0% |
Delivery Charges as of 7/24/25
| TDSP | Fixed Charge (Per Month) | Variable Charge (Per kWh) | Variable Charge Percentage Change |
|---|---|---|---|
| Centerpoint | $4.90 | 4.460¢ | +2.81% |
| ONCOR | $4.23 | 5.124¢ | +2.44% |
| TNMP | $7.85 | 6.152¢ | +7.84% |
| AEP-North | $3.21 | 5.130¢ | 0% |
| AEP-Central | $3.21 | 5.236¢ | -0.09% |
| Lubbock | $0.00 | 6.312¢ | 0% |
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¢ |
Other Blogs
https://www.energyogre.com/how-to-read-your-electricity-bill-an-in-depth-guide
https://www.energyogre.com/what-is-an-electricity-facts-label
Written by:
Garrett Faden is a Content Creator with over 5 years at Energy Ogre. He is dedicated to simplifying the market so Texans can confidently make cost-effective choices.