Texas Utility Companies

For reporting power outages in your vicinity, contact your utility company.

Each TDU in Texas has a specific service area where they are responsible for maintaining the transmission and distribution of electricity.

Texas has a robust electrical infrastructure, with transmission and distribution electric utilities (TDUs) responsible for delivering electricity to homes and businesses.

Retail electricity providers (REPs) and utility companies play different roles in the supply chain.

REPs purchase electricity from generators within the state and supply it to consumers at competitive prices while billing them for monthly usage.

Transmission and Distribution Utilities, on the other hand, are in charge of transmitting and distributing electricity to residential and commercial properties.

The Texas Public Utility Commission regulates and sets the rates utility companies charge for energy delivery twice a year, in the fall and spring seasons.

TDUs must adhere to Texas PUC regulations and ensure safe, reliable service within their designated service areas.

TDU delivery rates are regulated by the Public Utility Commission of Texas (PUCT) and must be approved before you see them on your bill.

You’ll find these delivery rates included in your monthly electricity bill, which cannot be marked up by your retail electric provider (REP).

TDU delivery charges will show up on your bill in two ways.

If you have a “bundled” electricity plan, your REP will include the TDU delivery charges in the energy charge on your bill.

If you have an “unbundled” electricity plan, you should see separate lines for those TDU charges on your bill.

Fixed-rate electricity plans are great because they let you lock in your electricity rate regardless of the overall electricity market changes.

Your provider’s rate won’t change, but the TDU that delivers your electricity can change delivery charges twice a year with regulatory approval.

Most of the time, you’ll find a section on your electricity facts label (EFL) or in terms of Service that says something like the following:

“Your price can change to reflect changes in TDU charges, changes to the ERCOT or Texas Regional Entity administrative fees charged to loads, or changes resulting from federal, state, or local laws that impose new or modified fees or costs.”

Simply put, the TDU can change the delivery fees to recover their costs, and that will make your bill go up a small amount.

The rate you are paying your provider for electricity will not change.

TDUs can update and change delivery fees twice yearly, on March 1 and September 1.

The Public Utility Commission of Texas (PUCT) must approve any changes in the delivery charges.

If you notice a change on your bill, contact your REP for the details of any delivery charge changes.

TDUs provide a critical public service and are entitled to collect 100% of their costs from consumers.

If something changes that costs the TDUs money to continue supplying electricity, say a winter storm comes through and wreaks havoc on power lines and transformers, the TDU can raise delivery charges to cover the cost of repairs.

Any time the TDUs want to raise their delivery charges, the changes must be approved by the PUCT before they appear on your bill.