Understanding TDU Delivery Charges




When you receive your monthly bill, you might notice various charges that contribute to the total amount due. Among the charges, the Transmission and Distribution Utility (TDU) delivery charges are often a significant component. Each TDU is responsible for maintaining the physical infrastructure of power lines, substations, poles, wires, and meters. The cost to maintaining the infrastructure is charged to each customer. The TDU charges vary based on where you live and which utility owns the infrastructure.

Retail Electricity Providers (REPs), like Champion Energy, procure electricity from generators and handle billing including pass-through costs like the TDU delivery charges. On your Champion Energy bill, the energy charge from us and the delivery charge from your utility are listed separately so customers know where their money is going.

Delivery charges are unavoidable costs. They are also subject to change even if you have a fixed rate plan. The changes are reviewed and approved by the Public Utility Commission of Texas (PUCT). Customers typically see the delivery rate change twice a year. Historically, the rates go down in March and increase in September. This change impacts any usage billed in or after those months, even if the usage was prior to that month.