Corpus Christi · AEP Texas Central

Transmission and Distribution Utility (TDU) delivery charges explained

Two companies show up on your Texas bill: the one that delivers power and the one that sells your plan. Here is what each charge means, plus a quick way to see your real plans by ZIP.

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1

The TDU delivers

Your local utility owns the poles, wires, and meters and sets regulated delivery charges.

2

The REP sells the plan

Your retail provider sets the energy charge and handles your billing.

3

Both appear on one bill

Delivery and energy charges add up to your total. Only the REP can change your plan.

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REP vs TDU: who does what

In deregulated Texas, the company that keeps your power flowing is not the company you buy your plan from. Knowing the split makes your bill far easier to read.

TDU: Transmission and Distribution Utility

The TDU is the regulated local utility, such as AEP Texas in the Corpus Christi area, Oncor in North and West Texas, or CenterPoint in the Houston area. It maintains the poles, wires, and meters and restores outages.

  • Delivers the electricity to your meter.
  • Sets regulated delivery charges that apply to every provider equally.
  • Handles outages no matter which retail plan you choose.

REP: Retail Electric Provider

The REP is the company you sign up with, such as Ambit Energy. It does not own the wires. It sets the energy charge and manages your account.

  • Sells you the plan and the energy charge.
  • Handles billing and customer service.
  • Is the only party that can change your plan or rate.

How the charges show up on your bill

Most Texas bills bundle both companies into one statement, then break the charges into separate line items.

TDU delivery charges

  • A per-kWh delivery charge that scales with how much power you use.
  • A fixed monthly delivery charge in many areas, regardless of usage.
  • Identical across providers: these are set by the utility, so switching REPs does not change them.

REP energy charges

  • The energy charge from the plan you chose, which is the part you control by shopping.
  • Any plan-specific items like base charges, minimum-usage fees, or bill credits, all spelled out in the EFL.
  • This is where comparing plans pays off, since the delivery side is fixed.

Comparing plans with the TDU in mind

Because delivery charges are the same for everyone in your area, the smart move is to compare the parts a plan actually controls.

Where to find the current schedule

Each plan's Electricity Facts Label references the current delivery charges alongside the energy charge. Always check the most recent EFL at enrollment, since the document combines both sides into the price examples you see.

What to line up on the EFL

  • Energy charge versus delivery charge, listed separately.
  • Any fees and the term length.
  • Usage examples as a guide, knowing your real use may differ.

See your real plans by ZIP

Delivery charges are fixed, so compare the part you control. Enter your ZIP to see your plans and enroll online.

Why people choose an Ambit plan

Since delivery charges are fixed, the value comes from the retail plan you pick. Where Ambit pulls ahead is what you get back on the power you already use.

A real path to Free Energy

Refer 15 active customers and Ambit credits your own energy free, with no time limit to get there. It is the kind of return a standard fixed plan does not offer.

Rewards on power you already use

The Ultimate Perks plan adds $50 a month in Reward Dollars, and travel plans earn 1 point for every kWh. A 60-day "Try it, Like it, Change it" window lets you switch Ambit term plans with no early-termination fee in your first 60 days. Green plan and no-deposit options are available.

TDU and delivery-charge questions

What are TDU delivery charges?

TDU delivery charges are fees from your local Transmission and Distribution Utility for maintaining power lines, poles, and meters. They are the same for everyone in your area, no matter which retail provider you choose.

What is the difference between a REP and a TDU?

A REP, or Retail Electric Provider, sells you electricity plans and handles billing. A TDU, or Transmission and Distribution Utility, delivers the electricity and maintains the grid. Both appear on your bill, but only the REP can change your plan or rate.

Why do I see both delivery and energy charges?

The energy charge is what you pay your REP for usage. The delivery charge is from the TDU to cover infrastructure. Together they make up your total bill.

Can I lower my TDU delivery charges by switching providers?

No. Delivery charges are set by the utility and are identical across providers. Switching changes only the energy charge and plan terms, which is the part worth comparing.

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