What Is a TDU? Texas Delivery Companies

What Is a TDU?

A TDU, or Transmission and Distribution Utility, is the company that physically delivers electricity to your home. They own and maintain the power lines, transformers, substations, and meters in your area. When the power goes out, your TDU is the company that sends crews to restore it.

In the deregulated Texas electricity market, the TDU handles the physical side while your Retail Electric Provider (REP) handles the business side. You choose your REP, but your TDU is assigned based on your address.

The Four Major TDUs in Texas

Texas has four major TDUs that serve the deregulated areas of the state:

Oncor Electric Delivery

Oncor is the largest TDU in Texas, serving more than 10 million customers across a territory that covers most of North and Central Texas. Their service area includes Dallas, Fort Worth, Waco, Midland, Odessa, and surrounding communities.

• Outage line: 1-888-313-4747
• Service area: ~120,000 square miles

CenterPoint Energy

CenterPoint serves the greater Houston metropolitan area, including over 2.8 million metered customers. If you live in Houston or its suburbs, CenterPoint is almost certainly your TDU.

• Outage line: 1-800-332-7143
• Service area: Greater Houston metro

AEP Texas

AEP Texas serves South and West Texas, covering cities like Corpus Christi, McAllen, Laredo, and parts of the Rio Grande Valley. Their service territory is geographically large but less densely populated than Oncor or CenterPoint.

• Outage line: 1-866-223-8508
• Service area: South and West Texas

Texas-New Mexico Power (TNMP)

TNMP is the smallest of the four major TDUs, serving scattered areas across the state. Their territory includes parts of the Houston suburbs, Central Texas, and some areas near Dallas.

• Outage line: 1-888-866-7456
• Service area: Various locations across Texas

What TDUs Do

Every day, your TDU handles several critical functions:

Maintain the grid. TDUs keep thousands of miles of power lines, poles, and transformers in working order. After storms, their crews are the ones restoring power.

Read your meter. Smart meters transmit your electricity data to the TDU, which shares it with your REP for billing. If you have an older meter, the TDU sends a meter reader.

Manage connections. When you move to a new address, the TDU handles the physical connection. When you switch REPs, the TDU processes the switch on the delivery side.

Respond to outages. Power outages are a TDU responsibility. Your REP cannot fix a downed power line or blown transformer.

TDU Charges on Your Bill

Every electricity plan in Texas includes TDU delivery charges. These charges typically have two parts:

1. A fixed monthly fee — This covers the cost of maintaining your connection to the grid. It ranges from about $3 to $5 per month depending on your TDU.
2. A per-kWh delivery charge — This is a small per-kWh fee that covers the cost of transmitting electricity through the grid. It varies by TDU but is typically 3-5 cents per kWh.

These charges are regulated by the Public Utility Commission of Texas and are the same no matter which REP you choose. Some plans bundle TDU charges into the advertised rate, while others list them separately. The Electricity Facts Label (EFL) always shows the all-in price including delivery charges.

How to Find Your TDU

The easiest way to find your TDU is to enter your ZIP code or address on ChooseMyPower. Your TDU is determined by your physical location, not by your REP. If you already have an electricity bill, the TDU name appears on it.

The Bottom Line

Your TDU is the behind-the-scenes company that keeps your electricity flowing. You cannot pick your TDU, but knowing which one serves your area helps you understand your bill, report outages to the right company, and make sense of the delivery charges that appear on every plan.