In Texas, Transmission and Distribution Utilities (TDUs), also known as Transmission and Distribution Service Providers (TDSPs), are the backbone of electricity delivery.
TDUs build and maintain the “physical infrastructure” of the Texas power grid. Physical infrastructure includes the power lines, poles, transformers, meters, etc — everything used to bring electricity from power plants to your home or business.
Unlike Retail Electric Providers (REPs), which sell electricity plans, TDUs focus on physically delivering said electricity.
- Maintain Infrastructure: TDUs keep the grid running by repairing and upgrading power lines, substations, and transformers.
- Restore Power: TDUs are responsible for addressing/restoring power outages
- Read Meters: They track your electricity usage, which REPs use to calculate your bill.
- Regulated by PUCT: The Public Utility Commission of Texas (PUCT) oversees TDUs, setting rates and ensuring fair access to the grid for all REPs.
How TDUs Impact Your Electricity Bill
TDUs charge fees for delivering electricity, which appear as “TDU Delivery Charges” on your bill. These charges are passed through by your REP without markup and are regulated by the PUCT. They consist of two components:
- Fixed Delivery Charge: A flat monthly fee (typically $3–$10) that covers meter maintenance and grid support, regardless of usage.
- Variable Delivery Charge: A per-kilowatt-hour (kWh) fee based on your electricity usage, covering the cost of maintaining power lines and infrastructure.
Recent changes: As of March 1, 2024, all Texas TDUs reduced their variable delivery charges, potentially lowering your bill. However, rates can fluctuate due to grid upgrades or storm recovery costs, as seen after Winter Storm Uri in 2021.
| TDU | Fixed Charge (monthly) | Variable Charge (as of 2024) |
|---|---|---|
| Oncor | $3.42 | ~4.2¢/kWh |
| CenterPoint Energy | $4.39 | ~4.8¢/kWh |
| AEP Texas Central | $9.00 | ~5.1¢/kWh |
| AEP Texas North | $9.00 | ~4.9¢/kWh |
| TNMP | $7.85 | ~6.2¢/kWh |
| Lubbock Power & Light | $5.00 | ~5.0¢/kWh |
Charges are approximate and based on PUCT-approved rates as of 2024.
How to Find TDU Charges on Your Bill
While your REP sends you a single bill, the TDU charges are always listed as separate line items. They are a “pass-through” cost, meaning your REP cannot mark them up. Look for a section often titled “Delivery Charges,” “TDU Pass-Through Charges,” or “Charges from your Utility.”
Major TDUs in Texas
Texas has six primary TDUs operating in its deregulated electricity markets, each serving a specific region. Your address determines which TDU delivers your electricity — you can’t choose your TDU like you can an REP.
| TDU | Service Area | Contact Number | Outage Reporting |
|---|---|---|---|
| Oncor | Dallas/Fort Worth, North and West Texas | 888-313-4747 | Report Outage |
| CenterPoint Energy | Houston and surrounding areas | 800-332-7143 | Report Outage |
| AEP Texas Central | Corpus Christi, McAllen, Laredo | 877-373-4858 | Report Outage |
| AEP Texas North | Abilene, San Angelo, Vernon | 877-373-4858 | Report Outage |
| TNMP | Lewisville, Angleton, Glen Rose | 888-866-7456 | Report Outage |
| Lubbock Power & Light (LP&L) | Lubbock area | 806-775-2509 | Outage Map |
The TDU’s Role When You Move (Move-In / Move-Out)
When you set up or transfer electricity service, your REP and TDU work together behind the scenes.
- Finding Your ESID: To start service, your REP needs your home’s unique ESID (Electric Service Identifier). The TDU is the official keeper of this number. You can often find your ESID on a previous bill or by using an online lookup tool.
- Move-In Request: When you sign up with an REP, they send a “move-in” request to your local TDU.
- The Connection: The TDU then performs the physical or remote connection of service to your meter. They are responsible for ensuring power is flowing on your start date. The same process happens in reverse for a “move-out.”
Reporting Other Grid Issues (Besides Outages)
Your TDU is responsible for the safety and maintenance of all public grid equipment. You should contact them directly to report:
- Downed Power Lines: Treat any downed line as extremely dangerous. Call your TDU’s emergency number or 911 immediately.
- Flickering Lights: Persistent flickering across your whole home can indicate a grid issue.
- Damaged Equipment: Report any damaged meters, transformers (the large green boxes in some yards), or utility poles.
- Trees Near Power Lines: If you see trees growing into or threatening power lines, notify your TDU.
TDUs vs. Retail Electric Providers (REPs)
In Texas’s deregulated market, TDUs and REPs have distinct roles:
- TDUs: Deliver electricity and maintain the grid. You don’t choose your TDU—it’s determined by your location.
- REPs: Sell electricity plans and handle billing/customer service. You can choose your REP for competitive pricing.
Example: If you live in Dallas, Oncor (TDU) delivers your power, but you might buy electricity from an REP like TXU Energy or Reliant.
TDUs are regulated monopolies in their service areas, while REPs compete for your business. This separation, established by Senate Bill 7 in 1999, promotes competition and consumer choice in deregulated areas.
Spotlight: The Lubbock Power & Light (LP&L) Transition
As of 2024, Lubbock Power & Light (LP&L) has officially transitioned into the competitive ERCOT market. For Lubbock residents, this is a significant change:
- LP&L is now the TDU: They no longer generate and sell electricity. Like Oncor or CenterPoint, their sole job is to maintain the local grid and deliver power.
- You Must Choose an REP: Lubbock residents must now choose a Retail Electric Provider (REP) to buy their electricity from.
This transition makes understanding the TDU vs. REP roles especially important for customers in the Lubbock area.
Energy Efficiency Programs
TDUs are required by Senate Bill 7 to offer energy efficiency programs to reduce demand growth. Examples include:
- Lubbock Power & Light’s Powerful Pointers: Partners with ENERGY STAR to promote energy-saving appliances and practices.
- Oncor’s Take a Load Off, Texas: Offers rebates for energy-efficient upgrades like insulation or HVAC systems.
- CenterPoint’s Efficiency Programs: Provides tips and incentives for reducing energy consumption.
Contact your TDU or visit their website for details on available programs in your area.
How to Find Your TDU
To identify your TDU, check your electricity bill or enter your zip code on the PUCT’s official website or an REP’s TDU lookup tool. Your TDU’s name and contact information are typically listed in the bill’s contact section.
Frequently Asked Questions
Who do I call during a power outage?
You must always call your TDU, not your Retail Electric Provider (REP). The TDU owns and operates the physical power lines and is responsible for all repairs. Your REP is a billing and service company; they have no ability to fix an outage. Refer to the table above for the correct outage number for your TDU.
Can I choose my TDU?
No. Your TDU is a regulated monopoly assigned to your geographic location. The specific TDU for your home or business is determined entirely by your address.
Why do TDU charges vary by company?
TDU charges vary because each utility has different operational costs approved by the PUCT. Factors include the population density of their service area (rural areas cost more to serve per customer), the age of their infrastructure, and ongoing grid improvement or storm recovery costs.
What if I’m in a regulated area of Texas?
If you are in a regulated area, such as Austin (Austin Energy) or San Antonio (CPS Energy), you do not have a separate TDU and REP. Your electricity is managed by a single, vertically-integrated municipal utility or cooperative that handles everything from power generation to delivery and billing. You cannot shop for different providers in these areas.