Understanding changes in TDSP charges and their impact on your electricity bill

Since 2002, much of the Texas electricity market has had the ability to choose a retail electricity provider (REP), such as Cirro Energy¹. In these areas of Texas, REPs aren’t the only companies involved in providing electricity. Transmission and Distribution Service Providers (TDSPs) are among the entities that also play an important role.

TDSPs’ roles include transmitting, delivering and restoring power

They manage and maintain the infrastructure, like poles, wires, transformers and meters, essential for ensuring that you have power.

TDSPs have specific territories in Texas

You can’t choose your TDSP. If you live in an area served by a TDSP, you may be served by CenterPoint Energy (CNP), Oncor, Texas-New Mexico Power (TNMP), AEP Texas, Central Company (TCC) or AEP Texas North Company (TNC), depending on your service address.

What are TDSP delivery charges?

These are fees assessed by your TDSP to cover the cost of its services, like maintaining the wires to your home, reading your meter, and transmitting and distributing your electricity1. The amount assessed may fluctuate based on your usage and price changes allowed by the Public Utility Commission of Texas (PUCT), which regulates all TDSPs in the state. It’s important to note that the same TDSP charges for your premise are billed by the TDSP to your REP, regardless of your REP. REPs pass these charges through to their customers without markup.

To make your TDSP Delivery Charges easy to find, we list it as a separate line item on your Cirro electricity bill.

You can find detailed information on TDSP charges here.

Frequently asked questions

Show all answers

Will my TDSP fees change if I switch providers?

TDSPs charge the same fees for your premise regardless of the REP serving you. Fees may change if you move to a new TDSP territory.

How often do TDSP fees change?

TDSP fees typically change quarterly. Changes can result in a net increase or decrease in fees.

How are TDSP fees calculated?

This depends on the fee. Certain fees are charged at a flat rate per billing cycle, while some are multiplied by the usage. For commercial customers, certain fees may be based on demand. A demand charge is based on the rate at which electric energy is delivered to or by a system at a given instant, or averaged over a designed period, during the billing cycle.

Terms and conditions

¹With certain exceptions, the areas within the Electric Reliability Council of Texas (ERCOT) with customer choice do not include areas served by Municipally Owned Utilities or Electric Cooperatives.