TDU Charge Updates March 2026 for Texas

As of March 1, 2026, the Public Utility Commission of Texas (PUCT) has approved semiannual updates to TDU charges across the deregulated market. That means the average price you pay for electricity could be affected, regardless of your energy provider or rate.

The good news is, while charges have been trending upward in recent years, all deregulated service areas maintained the same monthly flat rate and most stayed relatively consistent in terms of their variable rate charges too. However, residents local to Texas New Mexico Power’s service area weren’t so lucky, and will see a 12% increase in their variable rate charges on their next monthly bill.

Here’s the exact charges for reference:

Local TDU	Prior Rate (¢/kWh)	New Rate (¢/kWh)	Percentage Change
AEP-Central	6.056¢	6.059¢	+0.05%
AEP-North	5.923¢	5.926¢	+0.05%
CenterPoint	6.001¢	4.999¢	-16.70%
ONCOR	5.583¢	5.618¢	+0.63%
TNMP	6.467¢	7.274¢	+12.48%

Why did TDU charges change?

The five main transmission and delivery utilities (TDUs) for deregulated areas periodically update delivery charges to fund infrastructure maintenance, repairs, and updates to the Texas Grid. Increased TDU charges also fund storm recovery programs, rising transmission costs, and infrastructure expansion to keep up with increasing demand for energy.

Adjustments happen on March 1 and September 1, and require approval from the PUCT. TDU charge adjustments, especially increases, are heavily regulated in order to ensure fair and consistent pricing for electricity delivery, balancing consumer protections and maintaining infrastructure reliability.

TDU Charges vs. Energy Charges

Your monthly electricity bill is made up of two main components: TDU charges and electricity charges. While TDU charges are set by your local utility, you’ll need to shop around for a competitive electricity rate in Texas’s deregulated market.

Electricity Charge: This charge is based on the actual amount of electricity you consume and your chosen electricity rate.
TDU Charges: These fees cover the cost of transmitting and delivering electricity to you via local poles and wires. The local Transmission and Delivery Utility sets these charges and they’re passed on directly to consumers. There is no markup from REPs on these charges and everyone pays the same price.

How does this impact my bill?

While TDU changes are outside of your control, it’s still important to understand their impact on your monthly electricity bill. There are two components to TDU passthrough charges, a base delivery charge and a variable delivery charge.

Base Delivery Charge (Flat Rate): A flat monthly cost that doesn’t change with your usage. Think of this like a monthly subscription fee to your utility provider’s services.
Variable Delivery Charge: This is a cents-per-kWh rate, directly tied to how much electricity you use. This charge is added on to every kilowatt hour (kWh) of electricity that you use.

On your bill you can see these charges broken out in different lines to show Retail Electricity Provider (REP) vs. utility (TDU) charges.

While TDU charges have stabilized in this most recent adjustment, they have generally been trending upwards for the past few years. To make sure that your electricity bill isn’t rising alongside them, it’s important to periodically shop and compare electricity rates to lock in the cheapest option for your home or business. You can get started with EnergyBot in five minutes or less today.