Texas Transmission and Distribution Fee Increase for 2023

Texas Transmission and Distribution Fee Increase for 2023

See current TDU charges in Texas and how they effect your monthly electricity bill. Rates for every utility inside.

Thad Warren By Thad Warren
Fact Checked
Dan Schilens By Dan Schilens

As of September 1st, 2023, the Public Utility Commission of Texas (PUCT) increased the transmission and distribution charges Texans pay for their electricity service. The increase varies depending on your utility company or TDU like Oncor and CenterPoint.

Your electricity provider has no control over these rates or increases. The PUCT uses these increases to pay for improvements to the electricity grid.

Remember the 2021 Winter Storm Uri, when everyone was shouting about the condition of the grid? This increase is the financial repercussion of the improvements meant to prevent such an event from happening again.

What Are TDU delivery charges?

Before delving into the reasons for the rise, it's essential to understand what TDU charges are. Every electricity bill has two primary components:

  • Energy Charge: This is the fee you pay for the actual electricity you consume, which goes to the energy provider. You can shop for this rate. 
  • TDU Charges: Fees that cover the cost of transmitting (moving the electricity through large regions using high-voltage lines) and delivering the electricity to your via local poles and wires. The local Transmission and Delivery Utility levies these charges, and they're passed directly to consumers without any markup from the retail electric provider. You cannot shop for this rate. 

The Retail Electricity Provider (REP or Energy Supplier) is responsible for the energy charge. Some well-known examples include TXU Energy, Reliant Energy, and Green Mountain Energy.

The Transmission and Distribution Utility (TDU) is responsible for the TDU Charges. The TDU company is in charge of the electricity grid in your area. They charge you for delivering energy to your home or business. TDUs are also known as Transmission and Distribution Service Providers (TDSP). You probably know them as your utility company. For example, Oncor or CenterPoint.

What Does the TDU Increase Mean for Me?

  • Higher Monthly Bills: The most direct impact is an increase in the monthly electricity bill. Even if a consumer's energy consumption remains constant, their bill might rise due to higher TDU charges.
  • Choice of Retail Electric Provider (REP): Some consumers might feel compelled to switch their REP to find a better energy rate, offsetting the rising TDU charges. Make sure you do the math to make sure you aren't signing up for a plan with a higher energy charge or offsetting your savings with an early termination fee.
  • Demand for Energy Efficiency: With higher bills, there's a greater incentive for consumers to invest in energy-efficient appliances, home improvements, or even solar panels to reduce their energy consumption.

Electricity Bill Increases After The TDU Increase

*Based on example electricity supply rate of $0.10 per kilowatt hour (kWh)

Why Are Electricity Delivery Charges Increasing?

Several factors contribute to the escalating TDU charges in Texas:

  • Infrastructure Upgrades: As the state's population grows and the demand for electricity increases, there's a need to upgrade and expand the electricity infrastructure. Building new transmission lines, substations, and other facilities can be expensive.
  • Maintenance Costs: Texas faces extreme weather conditions, from scorching summers to unexpected winter storms, like the one witnessed in February 2021. Such conditions wear and tear the infrastructure, necessitating regular maintenance and, sometimes, unexpected repairs.
  • Integration of Renewable Energy: Texas has seen a significant rise in renewable energy sources, especially wind and solar. Integrating these sources into the grid can be costly, as they often require new transmission lines or technologies to ensure consistent delivery.
  • Regulatory Compliance: As environmental and safety standards evolve, TDUs need to invest in updates to ensure compliance, which can drive up costs.

Current TDU Charges for Each Utility in Texas

Starting September 1st there is an updated rate structure for all utilities (TDUs) in Texas. There are two types of TDU passthrough charges.

  • Variable Delivery Charges: This is a fee added on to each kilowatt hour (kWh) of electricity you use.
  • Flat Delivery Charges: This is a fixed fee that everyone will see on their bill regardless of how much electricity they use.

Below is a comparison of the TDU charges you will see on your bill in the future.

Variable TDU Delivery Charges

These charges are applied to each kilowatt hour of electricity you use. 

TDUCurrent Delivery Charge (Sep 2023 - March 2024)Previous Delivery Charge (Mar - Aug 2023)% Change
AEP Texas Central5.5226¢4.297¢29%
AEP Texas North5.1265¢3.9205¢31%
CenterPoint Energy5.4694¢3.7332¢47%

Fixed TDU Delivery Charges

This is a one time fee applied to your monthly electricity bill.

Current Delivery Charge (September 2023)Previous Delivery Charge (March - August 2023)% Change
AEP Texas Central$4.79$4.790%
AEP Texas North$4.79$4.790%
CenterPoint Energy$4.39$4.390%

Historical TDU Charges for Every Utility

Oncor Delivery Charges

UtilityEffective DatePer monthPer kWh
ONCORSeptember 1,2023$4.23$0.050339
ONCORMay 1,2023$4.23$0.038498
ONCORMarch 1,2023$3.42$0.035899
ONCORSeptember 1,2022$3.42$0.044076
ONCORMarch 1,2022$3.42$0.038907
ONCORSeptember 1,2021$3.42$0.041543
ONCORMarch 1,2021$3.42$0.034928
ONCORSeptember 1,2020$3.42$0.039220
ONCORMarch 1,2020$3.42$0.035448
ONCORSeptember 1,2019$3.42$0.038447
ONCORMarch 1,2019$3.42$0.031350
ONCORSeptember 1,2018$3.49$0.038271
ONCORMarch 1,2018$5.25$0.034556
ONCORSeptember 1,2017$5.25$0.036513
ONCORMarch 1,2017$5.25$0.032860

CenterPoint Delivery Charges

UtilityEffective DatePer monthPer kWh
CNPSeptember 1,2023$4.39$0.054694
CNPMarch 1,2023$4.39$0.037332
CNPSeptember 1,2022$4.39$0.049167
CNPMarch 1,2022$4.39$0.039416
CNPSeptember 1,2021$4.39$0.046397
CNPMarch 1,2021$4.39$0.033547
CNPSeptember 1,2020$4.39$0.042723
CNPApril 23,2020$4.39$0.037105
CNPMarch 1,2020$5.47$0.034485
CNPSeptember 1,2019$5.47$0.040512
CNPMarch 1,2019$5.47$0.036983
CNPSeptember 1,2018$5.47$0.042536
CNPMarch 1,2018$5.47$0.041084
CNPSeptember 1,2017$5.47$0.040313
CNPMarch 1,2017$5.47$0.035676

AEP Central Delivery Charges

UtilityEffective DatePer monthPer kWh
AEP-CSeptember 1,2023$4.79$0.055226
AEP-CMarch 1,2023$4.79$0.042970
AEP-CSeptember 1,2022$5.88$0.051079
AEP-CMarch 1,2022$5.88$0.045196
AEP-CSeptember 28,2021$5.88$0.045714
AEP-CSeptember 1,2021$4.79$0.045504
AEP-CJune 1,2021$4.79$0.040272
AEP-CMarch 1,2021$4.27$0.037458
AEP-CSeptember 1,2020$4.27$0.042929
AEP-CMarch 1,2020$9.00$0.040861
AEP-CSeptember 1,2019$9.00$0.044846
AEP-CMarch 1,2019$9.00$0.039405
AEP-CSeptember 1,2018$9.00$0.041602
AEP-CMarch 1,2018$9.00$0.040746
AEP-CSeptember 1,2017$9.00$0.043840
AEP-CMarch 1,2017$9.00$0.039606

AEP North Delivery Charges

UtilityEffective DatePer monthPer kWh
AEP-NSeptember 1,2023$4.79$0.051265
AEP-NMarch 1,2023$4.79$0.039205
AEP-NSeptember 1,2022$5.88$0.046985
AEP-NMarch 1,2022$5.88$0.041058
AEP-NSeptember 28,2021$5.88$0.041096
AEP-NSeptember 1,2021$4.79$0.041426
AEP-NJune 1,2021$4.79$0.036048
AEP-NMarch 1,2021$3.57$0.030078
AEP-NSeptember 1,2020$3.57$0.035325
AEP-NMarch 1,2020$10.53$0.038824
AEP-NSeptember 1,2019$10.53$0.040199
AEP-NMarch 1,2019$10.53$0.036596
AEP-NSeptember 1,2018$10.53$0.038807
AEP-NMarch 1,2018$10.53$0.038331
AEP-NSeptember 1,2017$10.53$0.041177
AEP-NMarch 1,2017$10.53$0.037026

TNMP Delivery Charges

UtilityEffective DatePer monthPer kWh
TNMPSeptember 1,2023$7.85$0.060465
TNMPMarch 1,2023$7.85$0.045521
TNMPSeptember 1,2022$7.85$0.054741
TNMPMarch 1,2022$7.85$0.047274
TNMPSeptember 1,2021$7.85$0.051602
TNMPMarch 1,2021$7.85$0.040403
TNMPSeptember 1,2020$7.85$0.049093
TNMPMarch 1,2020$7.85$0.041354
TNMPSeptember 1,2019$7.85$0.048321
TNMPMarch 1,2019$7.85$0.038999
TNMPSeptember 1,2018$8.65$0.036961
TNMPMarch 1,2018$8.65$0.032779
TNMPSeptember 1,2017$8.65$0.039126
TNMPMarch 1,2017$8.65$0.032654