Understanding your TDSP charges

Your monthly bill includes delivery charges from your Transmission and Distribution Service Provider (TDSP), so let's talk about what they are, why they exist, and how they impact your bill.

Since 2002, much of the Texas electricity market has had the ability to choose a retail electricity provider (REP), such as Direct Energy.*

In these areas of Texas, REPs aren't the only companies involved in providing electricity. Transmission and Distribution Service Providers (TDSPs) are among the entities that also play an important role.

TDSPs' roles include transmitting, delivering and restoring power

 

They manage and maintain the infrastructure, like poles, wires, transformers and meters, essential for ensuring that you have power.

TDSPs have specific territories in Texas

 

You can't choose your TDSP. If you live in an area served by a TDSP, you may be served by CenterPoint Energy, Oncor, Texas-New Mexico Power or AEP Texas, depending on your service address.

What are TDSP delivery charges?

These are fees assessed by your TDSP to cover the cost of its services, like maintaining the wires to your home, reading your meter, and transmitting and distributing your electricity. The amount assessed may fluctuate based on your monthly usage and price changes allowed by the Public Utility Commission of Texas (PUCT), which regulates all TDSPs in the state.

It's important to note that the same TDSP charges for your premise are billed by the TDSP to your REP, regardless of your REP. REPs pass these charges through to their customers without markup.

Below is an overview of what each TDSP charges per month and kWh.

Residential total @1000kWh CNP ONCOR AEP TX Central AEP TX North TNMP LP&L
Total TDSP charges per month: $4.39 $4.23 $3.24 $3.24 $7.85 $0.00
Total TDSP charges per kWh: $0.053509 $0.051893 $0.061325 $0.057927 $0.064135 $0.063120

Use the following formula to calculate the TDSP delivery charges billed:

(applicable charges based on customer usage and current meter read as of date of invoice)

 

TDSP delivery charges=[total TDSP delivery charges per month + (total TDSP delivery charges per kWh * monthly billed kWh usage)]

Example (CNP TDSP @ 1,000 kWh usage): [$4.39 + (0.053509 * 1,000 kWh)] = $57.89

 

 

To make your TDSP delivery charges easy to find, we list it as a separate line item on your monthly Direct Energy electricity bill.

If you need help paying your electricity bill, Direct Energy has relief options available. Click here to learn more about our financial aid programs.

Frequently asked questions

Show all answers

TDSPs charge the same fees for your premise regardless of the REP serving you. Fees may change if you move to a new TDSP territory.

TDSP fees typically change at least twice per year, including March and September. Changes can result in a net increase or decrease in fees.

This depends on the fee. Certain fees are charged at a flat rate per billing cycle, while some are multiplied by the usage. For commercial customers, certain fees may be based on demand. A demand charge is based on the rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designed period, during the billing cycle.

*With certain exceptions, the areas within the Electric Reliability Council of Texas (ERCOT) with customer choice do not include areas served by Municipally Owned Utilities or Electric Cooperatives.

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