Oncor vs CenterPoint: What's the Difference?

If you live in Texas, you've probably seen "Oncor" or "CenterPoint" on your electricity bill. But what are these companies, and why do they matter? Here's everything you need to know about Texas's two largest Transmission and Distribution Utilities (TDUs).

What Are TDUs?

Transmission and Distribution Utilities (TDUs) own and maintain the physical infrastructure that delivers electricity to your home—the power lines, transformers, substations, and meters. They don't generate electricity or sell it to you; they simply deliver it.

In Texas's deregulated market, TDUs are the one part of the system you can't choose. Your TDU is determined by your geographic location.

Oncor: Texas's Largest TDU

Service Area

Oncor serves more than 10 million Texans across 400+ cities and 120 counties, including:

Dallas-Fort Worth Metroplex: Dallas, Fort Worth, Arlington, Plano, Irving, Garland
Central Texas: Waco, Killeen, Temple
West Texas: Midland, Odessa, Lubbock (parts)
East Texas: Tyler, Longview (parts)

Oncor Delivery Charges (2026)

| Charge Type | Rate |

|-------------|------|

| Delivery Charge | ~3.5¢/kWh |

| Metering Charge | ~$3.42/month |

| Transmission Charge | Included in delivery |

Key Facts About Oncor

Largest TDU in Texas by customer count
Owned by Sempra Energy (since 2018)
Headquarters in Dallas
Operates over 140,000 miles of power lines
Serves approximately 40% of Texas electricity customers

CenterPoint: Houston's TDU

Service Area

CenterPoint Energy serves the greater Houston metropolitan area and surrounding regions:

Houston Metro: Houston, Sugar Land, The Woodlands, Pasadena, Pearland
Galveston County: Galveston, League City, Texas City
Brazoria County: Brazoria, Lake Jackson
Fort Bend County: Missouri City, Richmond

CenterPoint Delivery Charges (2026)

| Charge Type | Rate |

|-------------|------|

| Delivery Charge | ~3.8¢/kWh |

| Metering Charge | ~$4.39/month |

| Transmission Charge | Included in delivery |

Key Facts About CenterPoint

Second-largest TDU in Texas
Publicly traded company (CNP)
Headquarters in Houston
Also provides natural gas service in Houston
Serves approximately 2.8 million electric customers

How TDU Charges Affect Your Bill

Your TDU charges appear on your electricity bill regardless of which Retail Electric Provider (REP) you choose. Here's how they break down:

Example: 1,000 kWh Usage

Oncor Customer:

| Charge | Amount |

|--------|--------|

| Energy (from REP) | $100.00 |

| Oncor Delivery | $35.00 |

| Oncor Metering | $3.42 |

| TDU Total | $38.42 |

CenterPoint Customer:

| Charge | Amount |

|--------|--------|

| Energy (from REP) | $100.00 |

| CenterPoint Delivery | $38.00 |

| CenterPoint Metering | $4.39 |

| TDU Total | $42.39 |

The difference of ~$4/month (or ~$48/year) is entirely due to TDU charges—not your choice of electricity provider.

Why TDU Charges Differ

Several factors explain the difference between Oncor and CenterPoint charges:

Infrastructure Costs

Oncor serves a larger, more spread-out territory requiring more infrastructure
CenterPoint serves a denser urban area with different maintenance needs

Hurricane Hardening

CenterPoint has invested heavily in hurricane-resistant infrastructure after storms like Harvey (2017) and Ike (2008). These costs are recovered through rates.

Regulatory Decisions

The Public Utility Commission of Texas (PUCT) approves TDU rates based on each company's costs and investment needs.

Service Quality Investments

Both companies invest in grid reliability, smart meters, and outage response capabilities, but their specific investments differ.

What TDUs Do (and Don't Do)

TDUs Are Responsible For:

Maintaining power lines and transformers
Responding to outages
Reading your meter
Connecting and disconnecting service
Vegetation management (tree trimming)
Infrastructure upgrades

TDUs Are NOT Responsible For:

Setting your electricity rate
Billing you directly (your REP handles this)
Customer service for billing questions
Generating electricity

Outage Response: Oncor vs CenterPoint

When the power goes out, your TDU—not your electricity provider—is responsible for restoration.

Oncor Outage Response

Report outages: 1-888-313-4747 or Oncor app
Outage map: oncor.com/outages
Average restoration time: Varies by storm severity

CenterPoint Outage Response

Report outages: 1-800-332-7143 or CenterPoint app
Outage map: centerpointenergy.com/outages
Average restoration time: Varies by storm severity

Important: Calling your REP (TXU, Reliant, etc.) about an outage won't help—they can't restore power. Always contact your TDU directly.

Can You Switch TDUs?

No. Your TDU is determined by your physical location. If you live in Dallas, you're an Oncor customer. If you live in Houston, you're a CenterPoint customer. The only way to change your TDU is to move.

However, you CAN switch your Retail Electric Provider (REP) at any time. Shopping for a better energy rate is the main way to reduce your electricity costs.

TDU Charges and Plan Comparison

When comparing electricity plans, always factor in TDU charges. A plan advertising 8¢/kWh actually costs:

Oncor area: ~11.5¢/kWh total
CenterPoint area: ~12¢/kWh total

The Electricity Facts Label (EFL) for each plan shows the total price including TDU charges at different usage levels.

The Bottom Line

Oncor and CenterPoint are essential parts of Texas's electricity system, but they're not something you choose or control. Understanding their role helps you:

Know who to call during an outage
Understand your bill better
Compare plans accurately by including TDU charges
Set realistic expectations about what you can and can't control

Whether you're in Dallas (Oncor) or Houston (CenterPoint), the key to saving money is shopping for the best energy rate from a Retail Electric Provider—not worrying about TDU charges you can't change.