Texas TDU Delivery Charges, Explained for Energy Reps

Two companies, one bill

Every electric bill in a Texas choice area pays two companies. The retail provider charges for the energy. The wires company, called the TDU or TDSP, charges for delivering it. The customer picks the first one. The address decides the second.

The delivery part is set by the Public Utility Commission of Texas. The retail provider has to pass it through exactly as approved, with no markup. It's the same for every customer in that territory, no matter which provider they use.

What the delivery charge looks like

Each wires company's charge has two parts: a flat monthly fee, usually a few dollars, and a per-kWh charge on everything the home uses. On a typical 1,000 kWh month, delivery can easily be a third of the bill or more.

The amounts differ by territory. Oncor, CenterPoint, AEP Texas Central and North, TNMP and Lubbock Power & Light each have their own rates. That's why the same provider's plan can show a different price in Houston than in Corpus Christi.

Why a fixed rate bill still moves

This is the complaint your reps will hear most. 'I'm on a fixed plan, so why did my bill go up?' Often the answer is delivery. TDU charges can change a couple of times a year, usually around March and September. When they change, every customer in that territory sees it, fixed plan or not.

A rep who can explain that calmly comes across as someone who knows the business. A rep who blames the customer's current provider for a delivery increase usually loses the sale once the customer checks.

How to use this on a call or at the door

A few habits make delivery charges work for your reps instead of against them.

• Compare the energy part. Delivery is the same whoever the customer picks, so the real difference between plans is the energy charge, fees and credits.
• Price by zone. Make sure your reps quote the plan for the customer's wires company. Our Texas leads list it on every record.
• Point to the label. Every plan has an Electricity Facts Label showing the average price with delivery included. Our EFL guide walks through it.

The short version

Delivery charges belong to the wires company, not the provider. They're the same for everyone in a territory and can change a couple of times a year. Get your reps comfortable explaining that, and sort your leads by wires company so every quote starts from the right numbers. More on that in our wires company guide.