TDU versus retail electric provider
A retail electric provider (REP) sells the electricity plan, sends the bill, handles account questions, and controls the retail plan terms — that's the company you shop for in a deregulated area. A transmission and distribution utility (TDU, sometimes TDSP) owns and maintains the local poles, wires, substations, and meter, and is generally responsible for outages and damaged delivery equipment. Examples in competitive Texas markets include Oncor, CenterPoint Energy, AEP Texas, Texas-New Mexico Power (TNMP), and Lubbock Power & Light.
The practical rule: contact the TDU about an outage, and contact the retail provider about the bill or contract. You do not choose the TDU, and changing retail providers does not change which TDU serves the address.
What does the delivery charge pay for?
The delivery portion helps pay for moving electricity from the grid to the home and maintaining the infrastructure required to do it. Depending on the applicable tariff and bill presentation, the delivery amount can include a fixed monthly component, a usage-based component, or other approved delivery items — so two homes in the same TDU territory can pay different delivery totals when their usage differs, even under the same underlying tariff.
Is the TDU charge included in the advertised electricity price?
On an Electricity Facts Label (EFL), the average-price examples at the standard usage levels are designed to reflect the recurring charges used to calculate that example, which includes applicable recurring delivery charges. Taxes and certain non-recurring or location-specific charges may be treated differently, so the EFL and Terms of Service still matter.
That's why "the delivery charge was completely left off the EFL" is usually the wrong diagnosis. The more common problem is a shopper comparing one advertised average-price example against a real month with different usage. Bill credits, minimum-usage fees, base charges, tiers, and time-of-use rules can all change the effective price when actual consumption differs from the example — see our plan traps guide for exactly how that math works.
Find plans for the right delivery territory
Enter your Texas ZIP code to start. If more than one delivery utility can serve that ZIP, we'll explain what to confirm for the exact address before making a recommendation.
Free to use. No monthly management fee. Recommendations are based on plan structure and your usage — not provider placement.
Why can the same retail plan cost more in another part of Texas?
Retail offers are priced for a delivery territory. A provider can sell a plan with the same name in Oncor and CenterPoint territory, but the complete price can differ because the applicable delivery tariffs differ. That's one reason an electricity comparison should start with the service address or verified delivery utility — not a statewide headline rate.
Can I choose or switch my TDU?
Normally, no. The delivery utility is assigned by the service address. You can choose among participating retail providers when the address is in an area open to competition, but the wires company stays the same.
Some ZIP codes cross delivery boundaries. Treat a ZIP-only result as a territory shortlist when more than one utility is possible, and confirm the exact address using the delivery utility shown on an existing bill, a utility service-territory lookup, or information from the property manager or previous occupant.
Can I avoid the delivery charge by changing providers?
No retail provider can remove the regulated cost of delivering electricity to the address. Providers can present or bundle charges differently, and their energy prices and plan structures vary, but delivery service still has to be paid for. The useful comparison is the projected complete bill at realistic usage — not which offer makes one line item look smallest.
How to compare plans when delivery charges are involved
- Identify the delivery territory for the exact address.
- Estimate usage from recent bills whenever possible.
- Read the EFL at more than one usage level.
- Check base charges, bill-credit thresholds, minimum-usage fees, time-of-use rules, and early-termination terms.
- Compare projected monthly costs across a realistic usage range.
That's the approach I Moved to Texas is built around: the tool filters plans by delivery territory and evaluates each plan's structure against the household's usage instead of ranking a single advertised rate. See How We Rank Plans for the full breakdown of ranking factors.
Compare plans using my home and usage
We check your ZIP and delivery utility, then rank plans against your real usage — not a headline rate.
Frequently asked questions
Is a TDU the same as my electricity provider?
No. The TDU maintains the delivery infrastructure and handles outages. The retail electric provider sells the plan, bills the customer, and manages the retail account.
Why does my retail provider collect a TDU charge?
In competitive areas, the retail provider sends the customer bill and collects the applicable delivery charges on behalf of the utility that serves the address.
Does switching providers change my outage company?
No. The delivery utility is tied to the address, so switching retail providers does not change the company responsible for local wires and outage restoration.
Are TDU charges the same across Texas?
No. Delivery tariffs vary by utility territory and can change through the regulatory process, so compare offers within the correct territory rather than assuming a statewide rate.
Can a ZIP code have more than one TDU?
Yes. Some ZIP codes cross utility boundaries, so exact-address confirmation can be necessary before assuming which company delivers power to a specific home.
Sources: Public Utility Commission of Texas — Charges on Your Electric Bill, Electric Customer Rights and Electricity Facts Labels, and the Electricity Facts Label disclosure rule (16 TAC §25.475); Oncor and CenterPoint Energy service-territory pages. This guide does not allege that any provider hides charges, buys placement, or pays for rankings — we don't accept payment for placement either. General informational content, not a substitute for reading the actual EFL of any plan you're considering.