In Texas's deregulated electricity market, AEP Texas is a Transmission and Distribution Utility (TDU) responsible for delivering electricity to your home. While you choose your Retail Electric Provider (REP) for the supply portion, AEP Texas handles the delivery—and those charges appear on your bill.
What is a TDU?
A TDU (Transmission and Distribution Utility) owns and maintains the power lines, poles, and infrastructure that deliver electricity to your home. In Texas:
- You cannot choose your TDU—it's determined by your location
- You can choose your REP (Retail Electric Provider) for supply
- TDU charges are regulated by the Public Utility Commission of Texas
AEP Texas Delivery Charges
AEP Texas delivery charges include:
- Base Charge: Fixed monthly fee (~$5.25)
- Metering Charge: For smart meter services (~$2.19/month)
- Delivery Charge: Per kWh rate (~$0.035-0.04/kWh)
- Transmission Charge: Per kWh for high-voltage transmission
How TDU Charges Appear on Your Bill
Depending on your REP, TDU charges may appear:
- Bundled: Combined with supply charges in one rate
- Itemized: Shown separately as "Delivery Charges"
Either way, you're paying the same regulated TDU rates—it's just a matter of how they're displayed.
Comparing Electricity Plans
When shopping for electricity on PowerToChoose.org:
- Look at the "Average Price" which includes TDU charges
- Compare plans at your typical usage level (500, 1000, or 2000 kWh)
- Read the Electricity Facts Label (EFL) for full details
- Check for hidden fees beyond the advertised rate