Watt Owl10 min readKey Takeaways
- ★About 40% of your electricity bill goes to delivery charges. You pay them no matter which provider you choose.
- ★Texas has four main TDUs: Oncor, CenterPoint, AEP Texas, and TNMP, each with different delivery rates.
- ★"Fixed rate" plans only fix the energy portion. Delivery charges change on March 1 and September 1 each year.
- ★Delivery charges include 6-7 sub-components (customer charge, metering, distribution, transmission recovery, and more).
- ★When comparing plans, always look at the total bill, not the energy rate alone.
What are TDU delivery charges and why do you pay them?
Your electricity bill has two main parts. The first is your energy charge. This comes from your REP (Retail Electric Provider), the company you chose when you signed up for a plan. The second part is the delivery charge. This comes from your TDU.
A TDU (Transmission and Distribution Utility) is the company that owns the power lines, poles, and meters in your area. They don't sell you power. They move it from the grid to your home.
Texas has four main TDUs: Oncor (Dallas–Fort Worth and much of North Texas), CenterPoint (Houston metro), AEP Texas, and TNMP (scattered territories across the state). AEP Texas has two service areas with slightly different rates. Central, despite the name, covers South Texas (Corpus Christi, Rio Grande Valley, Laredo). North covers West Texas (Abilene, San Angelo). Your address determines which TDU serves you, and you can't switch to a different one.
When you switch electricity providers, only your energy charge changes. Your delivery charge stays exactly the same. Every REP in your area pays the same TDU delivery rate, and that cost gets passed on to you.
Delivery charges are regulated by the PUCT (Public Utility Commission of Texas) under PUCT Substantive Rule 25.214, which falls under PURA Chapter 39, the law that created Texas's deregulated electricity market. The PUCT reviews and approves every rate change before it takes effect.
How much do delivery charges add to your bill?
For most Texas households, delivery charges make up about 40% of the total electricity bill. But that number can be even higher if you use less power, because a chunk of the delivery charge is a flat monthly fee you pay regardless of usage.
Say you live in Oncor territory and use 1,000 kWh in a month. Your delivery charge would be $4.23 (fixed monthly charge) plus 1,000 times $0.056032 per kWh (variable rate). That comes to about $60.26. If your total bill is around $150, delivery alone is roughly 40% of the total.
At lower usage levels, the percentage goes up. A household using 500 kWh per month might see delivery charges account for 45-50% of the bill, because the fixed monthly charge is a bigger share of a smaller total.
A household in Oncor territory using 500 kWh would pay $4.23 (fixed) plus 500 times 5.60 cents per kWh, which comes to $32.23 in delivery. If their energy charge is around $45 at 9 cents per kWh, the total bill is about $77, and delivery makes up 42% of it. At that same energy rate, a household using 2,000 kWh would pay $116.27 in delivery on a $296 total bill, dropping delivery to about 39% of the total. The less power you use, the bigger delivery looms.
| TDU | Territory | Fixed Charge ($/mo) | Variable Rate (¢/kWh) | Cost at 1,000 kWh | Cost at 2,000 kWh |
|---|---|---|---|---|---|
| Oncor | Dallas–Fort Worth, Waco, Killeen | $4.23 | 5.60 | $60.23 | $116.27 |
| CenterPoint | Houston metro | $4.90 | 6.00 | $64.90 | $124.90 |
| AEP Texas Central | Corpus Christi, RGV, Laredo | $3.24 | 6.06 | $63.84 | $124.36 |
| AEP Texas North | Abilene, San Angelo | $3.24 | 5.92 | $62.44 | $121.70 |
| TNMP | Various (scattered territories) | $7.85 | 7.24 | $80.25 | $152.65 |
Rates from PUC-published TDU tariff filings, as of February 2026. Enter your ZIP code below to find your TDU and see current delivery rates for your area.
Each of those totals bundles together 6-7 separate sub-line-items. According to Oncor's Delivery Charges 101, the components include: a customer charge (flat monthly fee), metering charge, distribution system charge, transmission cost recovery factor (TCOS), distribution cost recovery factor (DCRF), energy efficiency cost recovery factor, and nuclear decommissioning charge. You don't need to track each one. They all roll up into two numbers: a fixed monthly charge and a variable per-kWh rate.
See Your Delivery Charges by ZIP Code
Enter your ZIP code below to find your TDU and see what you're paying for delivery. Your TDU is determined by your address, and knowing which one serves you is the first step to understanding your bill.
See Your Delivery Charges by ZIP Code
Find Your TDU and See Current Delivery Rates
Enter your ZIP code to see your TDU and current delivery charges.
How do the four Texas TDUs compare on price?
At 1,000 kWh per month, Oncor is the cheapest TDU at $60.23 for delivery. CenterPoint and the two AEP Texas territories land in the mid-$60s. TNMP is the most expensive at $80.25, about 33% more than Oncor.
TNMP's higher cost comes from both ends: the highest variable rate (7.24 cents/kWh) and the highest fixed charge ($7.85/month). Oncor has the lowest variable rate at 5.60 cents/kWh, while AEP Texas has the lowest fixed charge at $3.24/month. At very low usage levels, AEP's lower fixed charge can edge out Oncor, but for typical households Oncor comes out ahead.
Over a full year at 1,000 kWh per month, the difference between the cheapest and most expensive TDU adds up. An Oncor customer pays about $723 per year in delivery. A TNMP customer pays about $963. That's $240 more per year for the same amount of electricity delivered through different wires. You can't switch TDUs, but understanding this gap helps explain why two households with the same electricity plan can have very different bills.
For context, the average residential electricity rate in Texas is 16.04 cents/kWh as of November 2025, according to the EIA Electric Power Monthly. Of that total, roughly 6 cents goes to delivery. Texas remains below the national average of about 17 cents/kWh, but delivery charges are a growing share of the total.
You can see how delivery charges affect real plan prices in your area. Check out Dallas electricity rates (Oncor territory) or Houston electricity rates (CenterPoint territory) to compare plans with delivery included.
Not sure which TDU serves your address? Oncor covers Dallas, Fort Worth, Waco, Killeen, and much of North Texas. CenterPoint serves the Houston metropolitan area. AEP Texas Central covers Corpus Christi, the Rio Grande Valley, and Laredo. AEP Texas North serves Abilene and San Angelo. TNMP has a patchwork of smaller service areas scattered across the state. Enter your ZIP code in the tool above to find your exact TDU.
Why do delivery charges change twice a year?
TDU delivery rates typically adjust on March 1 and September 1 each year. Three mechanisms drive these changes:
- Full base rate cases, comprehensive reviews that take 6-12 months and reset the TDU's entire rate structure.
- DCRF (Distribution Cost Recovery Factor), an interim mechanism that lets TDUs recover costs for new distribution infrastructure (like storm hardening and smart meters) between full rate cases.
- TCOS (Transmission Cost of Service), an interim mechanism for recovering transmission line investments.
The most recent round of changes took effect September 1, 2025. Oncor's delivery rates went up about 8.6%, CenterPoint increased 3.3%, TNMP rose 4.5%, and AEP Texas barely changed.
Looking ahead, two major rate cases are pending. Oncor filed an $834 million rate case in June 2025 that could add roughly $7 per month for the average household. CenterPoint's $2.7 billion resiliency plan was approved in August 2025 and will phase in at about $1.40 per month each year through 2028.
Do delivery charges affect which electricity plan is cheapest?
Yes. Many shoppers get tripped up here because some REPs advertise a low "energy rate" that doesn't include delivery. If you only compare headline rates, you could pick a plan that actually costs more.
Every plan's EFL (Electricity Facts Label) is required by the PUC to show average prices at 500, 1,000, and 2,000 kWh that include all charges, energy and delivery combined. The EFL price is your real cost. That advertised "energy rate" can be 4–6 cents per kWh lower than what you actually pay once delivery is factored in.
Say you're comparing two plans in Oncor territory at 1,000 kWh. Plan A’s EFL shows 9.0 cents per kWh, so your bill would be $90. Plan B advertises an "energy rate" of 5.5 cents per kWh, but the EFL shows 11.5 cents per kWh once delivery is included. Your bill would be $115. Plan B looked cheaper by the headline rate but costs $25 more per month. Always compare using the EFL’s average price, not the advertised energy rate.
This is one of the reasons we built Watt Owl. Every plan on our site shows your total estimated bill, including delivery charges, calculated from the actual tariff components. No guessing, no hidden costs. You can read more about how we calculate bills on our methodology page.
Want to learn how to read an EFL and spot what you're actually paying? Read our guide to reading your Electricity Facts Label.
Frequently asked questions
TDU delivery charges cover the cost of transporting electricity from the power grid to your home through local power lines. Every Texas electricity customer pays them, regardless of which retail provider they choose. They typically make up about 40% of your total bill.
No. Delivery charges are regulated by the Public Utility Commission of Texas (PUCT) and apply to every customer in a TDU's territory. Switching electricity providers only changes your energy charge — delivery stays the same. The only way your delivery charges would change is if you moved to a different TDU's service area.
Yes. Your TDU delivery charges are identical whether you are with TXU, Reliant, or any other provider. The difference between plans is always the energy charge. That is why comparing total bill cost (energy + delivery) gives you a more accurate picture than comparing energy rates alone.
TDU rates typically change on March 1 and September 1 each year. Increases are driven by infrastructure investment — things like storm restoration, grid hardening, new smart meters, and transmission upgrades. The PUCT reviews and approves all rate changes. As of February 2026, several major rate cases are pending, including an Oncor base rate case and CenterPoint's $2.7 billion resiliency plan.
As of February 2026, Oncor has the lowest delivery cost at about $60 per month for a home using 1,000 kWh. CenterPoint (Houston) and AEP Texas are in the mid-$60s, while TNMP is the most expensive at about $80 per month at 1,000 kWh. You cannot choose your TDU — it is determined by your physical address.
Looking ahead to the rest of 2026, delivery charges in several territories are likely to increase. Oncor's pending $834 million rate case, if approved, could add roughly $7 per month to the average household bill. CenterPoint's resiliency plan will continue phasing in at about $1.40 per month each year through 2028, covering hurricane hardening and grid upgrades. TNMP has also filed for a base rate review. Keep an eye on March 1 for the next round of adjustments.
The bottom line on TDU delivery charges
Delivery charges are the part of your electricity bill that stays the same no matter which provider you pick. They make up about 40% of what you pay, they are set by the PUCT, and they adjust on March 1 and September 1 each year.
Understanding delivery charges helps you compare plans honestly. The advertised energy rate is only part of the story. Always look at the total cost (energy plus delivery) to see what you'll actually pay. If any of the terms in this guide were new to you, our electricity glossary covers them all in plain language.
With pending rate cases from Oncor and CenterPoint, delivery charges are likely to increase later in 2026. Understanding what delivery adds to the cost helps you compare plans more accurately and avoid surprises on your bill. Enter your ZIP code below to compare plans with delivery charges included.
Watt Owl is a licensed electricity broker in Texas (PUCT License BR260022). We may earn a commission when you enroll through our links. Our recommendations are based on transparent rate calculations, not commission size.
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