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What is a ‘TDU Delivery Charge’ and Why is it on My Electric Bill?

Ever wonder why your electric bill seems full of charges that look foreign? You’re not alone! Acronyms like RSD and TDU can throw the average consumer for a loop.

First - the basics of your bill. Your electric bill is made up of two main categories: the generation, or electricity supply, portion and the delivery, or TDU, portion. Read more about other charges here.

Because electric markets in 17 states are deregulated, you can choose who to buy your electricity from. The charges from this company – electric supply charges – are based on the electric plan you sign up for and are determined each month by how much electricity you use, what your electricity rate is and whether you have a variable-rate or fixed-rate plan.

TDU stands for transmission and delivery utility, which is the electric utility that distributes electricity from power generation companies to homes in Texas. Some of the TDUs in larger areas in Texas are Center Point Energy and Oncor. Your TDU’s job is to get electricity from the companies that generate it to homes and businesses, as well as managing and maintaining power lines, poles and other infrastructure used in the transmission and distribution of electricity.

TDU fees are determined by the state’s Public Utility Commission (PUC),which tells your electric utility to require delivery fees of everyone who gets electricity distributed to their home. The fees generate revenue for the utility which are allocated for maintaining the electric grid as well as the entire delivery infrastructure, including poles, wires and transformers.

Every electric customer must pay the TDU delivery charge, regardless of whether they choose an alternative electric supplier or not. You’ll probably be able to get cheaper electricity if you switch to an alternative electric supplier, but the TDU delivery charge will stay the same.

At Spark, we do our very best to keep costs low for you. You can learn more about how Spark charges fees by reading our FAQs.
6/22/2011 8:16:00 AM
in Residential 
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