Quick Answer
A TDU delivery charge pays for delivering electricity to your home through the poles, wires, meters, and other infrastructure in your area. Your local Transmission and Distribution Utility sets these charges, not 4Change Energy. Retail electricity providers collect the charges on your bill and pass them through to the TDU.
If you’ve looked closely at your 4Change Energy bill, you may have noticed a TDU delivery charge listed alongside your electricity costs.
So, what exactly are you paying for?
In Texas, buying electricity and physically delivering that electricity to your home are two different jobs. 4Change Energy is your Retail Electric Provider, while your local Transmission and Distribution Utility, or TDU, maintains the infrastructure that brings electricity to your home.
Here’s how it works.
What Is a TDU Delivery Charge?
A TDU delivery charge covers the cost of transporting electricity across the local power grid and delivering it to your home.
Your TDU maintains important infrastructure such as:
- Power lines
- Utility poles
- Electricity meters
- Transformers
- Local distribution equipment
The TDU is also responsible for maintaining this equipment and restoring service after many power outages.
4Change Energy doesn’t own the poles or power lines in your neighborhood. That’s your TDU’s job.
Who Is My TDU in Texas?
Your TDU is determined by where you live. You don’t choose your TDU when you select an electricity plan.
Depending on your location, your TDU may be:
- Oncor
- CenterPoint Energy
- AEP Texas
- Texas-New Mexico Power
- Lubbock Power & Light
You can switch Retail Electric Providers while remaining connected to the same TDU.
For example, switching to 4Change Energy won’t change the company maintaining the power lines in your neighborhood.
Who Sets the TDU Delivery Charge?
Your local utility sets its TDU delivery charge under rates approved by the Public Utility Commission of Texas.
4Change Energy does not set these delivery rates.
Instead, the applicable TDU charges are included on your electricity bill and passed through to the utility.
That distinction is important when you’re comparing Texas electricity plans.
Why Is the TDU Delivery Charge on My 4Change Energy Bill?
It might seem strange to see a utility charge on a bill from 4Change Energy.
Texas’ deregulated electricity market separates electricity retail service from electricity delivery.
4Change Energy handles your retail electricity plan, customer account, and billing. Your TDU handles the physical delivery of electricity to your property.
Putting the applicable charges together on one electricity bill makes paying for both services much simpler.
Is the TDU Delivery Charge the Same With Every Electricity Provider?
If you’re comparing plans available at the same address, the underlying TDU rates are associated with the utility serving that area rather than the Retail Electric Provider you select.
That means switching electricity providers does not allow you to switch TDUs or avoid your area’s applicable TDU charges.
However, the total prices, fees, terms, and pricing structures of retail electricity plans can vary.
That’s why 4Change Energy recommends looking beyond a single advertised number when comparing plans.
Review the Electricity Facts Label, or EFL, to understand how the plan’s pricing works at different usage levels.
Why Does My TDU Delivery Charge Change?
A TDU delivery charge may include both fixed and usage-based components.
As a result, the amount appearing on your electricity bill can change when your electricity consumption changes.
Think about a Texas summer.
When temperatures climb into the triple digits, your air conditioner may run much longer. Your household could use substantially more kilowatt-hours than it did during a mild spring month.
Higher electricity consumption can result in a higher total usage-based delivery charge.
Approved TDU rates can also change over time.
Can I Avoid TDU Delivery Charges?
Generally, no.
If your home receives electricity through a TDU’s distribution system, applicable delivery charges are part of the cost of providing electricity service to that property.
Be cautious when comparing plans based solely on an advertised electricity rate.
Instead, look at the plan’s EFL. It provides important information about pricing and helps you understand what you could pay at different electricity usage levels.
4Change Energy makes EFLs available for its electricity plans so Texans can review plan details before enrolling.
What Does Your TDU Do During a Power Outage?
Your TDU has another important responsibility: power restoration.
When a Texas thunderstorm, high winds, or another event damages local electricity infrastructure, your TDU is responsible for repairing its equipment and restoring power.
That’s why you should contact your TDU when your power goes out.
Your TDU can provide information about:
- Known outages
- Outage maps
- Restoration estimates
- Downed power lines
- Infrastructure damage
4Change Energy provides an online Power Outage Center to help customers quickly find the correct TDU and outage information for their area.
4Change Energy vs. Your TDU: What’s the Difference?
An easy way to remember the difference is:
4Change Energy: Your electricity provider.
Your TDU: The company that delivers electricity to your home.
4Change Energy manages your electricity plan, account, and billing.
Your TDU maintains the local poles, wires, meters, and other infrastructure needed to deliver electricity.
Both play different roles in keeping your Texas home powered.
Frequently Asked Questions
What is a TDU delivery charge in Texas?
A TDU delivery charge helps pay for the infrastructure and services required to deliver electricity to your home. This includes local poles, wires, meters, transformers, and distribution equipment.
Does 4Change Energy set TDU charges?
No. 4Change Energy does not set your TDU’s delivery rates. Your local utility sets its rates under the applicable Texas regulatory process.
Can I switch my TDU?
Generally, no. Your location determines which TDU serves your property.
You can choose among eligible Retail Electric Providers in deregulated areas, but changing providers does not change your TDU.
Why did my TDU delivery charge increase?
Your total TDU delivery charge can increase when you use more electricity because some delivery charges are based on kWh consumption. TDU rates themselves can also change after regulatory approval.
Who do I contact when my power goes out?
Contact your local TDU to report an outage or check restoration information.
4Change Energy customers can use the 4Change Energy Power Outage Center to find their TDU and the appropriate outage resources.
Understanding Your Texas Electricity Bill
A TDU delivery charge isn’t an extra fee created by 4Change Energy. It reflects the cost of using your local utility’s infrastructure to deliver electricity to your home.
Understanding that distinction makes it easier to read your electricity bill and compare electricity plans.
At 4Change Energy, we want Texans to know what they’re paying for. From straightforward plan information to helpful electricity resources, 4Change Energy makes it easier to understand your electricity service and choose a plan that works for your household.