AEP Texas TDU Charges Explained

Last updated: January 2026
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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:

  1. Look at the "Average Price" which includes TDU charges
  2. Compare plans at your typical usage level (500, 1000, or 2000 kWh)
  3. Read the Electricity Facts Label (EFL) for full details
  4. Check for hidden fees beyond the advertised rate

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More About AEP Texas Billing

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Frequently Asked Questions

Can I avoid AEP Texas TDU charges?

No, TDU charges are required for electricity delivery and are the same regardless of which REP you choose. They're regulated by the state and cannot be avoided or negotiated.

Why are TDU charges separate from my electricity rate?

Texas deregulated electricity supply but kept delivery as a regulated monopoly. This separation ensures fair competition among REPs while maintaining reliable infrastructure.

How much of my bill is TDU charges?

TDU charges typically make up 20-30% of your total electricity bill, depending on your usage and supply rate. The percentage is higher for low-usage customers.