What a TDU actually does
Transmission and Distribution Utilities (TDUs) own the poles, wires, and meters. They don’t sell you electricity — your retail provider (REP) does that — but they physically move the electrons from generation to your house.
In Texas, you cannot choose your TDU. It’s determined by your address. Oncor serves most of North and West Texas (including Dallas, Fort Worth, and the Permian Basin). CenterPoint serves most of the Greater Houston area.
The tariff breakdown
Every TDU files an annual tariff with the Public Utility Commission. The 2026 numbers:
| Component | Oncor | CenterPoint |
|---|---|---|
| Customer charge | $3.42 | $4.39 |
| Delivery charge (per kWh) | 4.18¢ | 4.62¢ |
| 1,000 kWh monthly total | $45.62 | $50.59 |
On a 1,000 kWh home, CenterPoint customers pay about $60 more per year in delivery charges than Oncor customers — before you factor in the generation rate.
Why this matters when you shop
Because the TDU fee is bundled into every plan, the “average” Texas rate you see quoted isn’t really apples-to-apples across markets. A 10¢ plan in Dallas is not the same bill as a 10¢ plan in Houston.
Our comparison tool shows the all-in rate including your specific TDU fee, so you can compare honestly.