What is a TDU and why are they charging me?
TDU stands for transmission and distribution utility and it’s also known as a TDSP or transmission and distribution service provider. You’ll recognize these providers as Oncor, CenterPoint, AEP Texas Central, AEP Texas North or TNMP. Because these companies are responsible for delivering your energy and are regulated by the Public Utility Commission of Texas (PUCT), any increase or decrease in delivery charges requires PUCT approval. Occasionally, TDU charges will decrease or increase and we pass those charges to our customers at our cost and without a markup. We will never profit from any TDU charge increase if one occurs. You’ll see that the TDU Charge is broken down and shown separately on your monthly bill as a “TDU Energy Charge”. The TDU Energy Charge is multiplied against your usage . Let’s look at this bill to see an example of the TDU Charges: The Kinetic Energy Charge line in the Charges section turns that usage into a dollar amount. This customer is paying an energy rate of
