Utility Check

Oncor TDU Charges Explained

Last updated: January 2026

TDU (Transmission and Distribution Utility) charges are a significant component of your electricity bill in Texas's deregulated market. Oncor, as the TDU for the Dallas-Fort Worth area, charges these fees for delivering electricity to your home.

Understanding TDU charges is essential because they're the same regardless of which retail electricity provider you choose—you can't shop around for lower TDU rates.

What Are TDU Charges?

Oncor's TDU charges cover:

  • Transmission: Moving electricity from power plants to local substations
  • Distribution: Delivering electricity from substations to your home
  • Metering: Reading and maintaining your electric meter
  • Infrastructure: Maintaining poles, wires, and equipment

These charges are regulated by the Public Utility Commission of Texas (PUCT).

TDU Charge Components

Oncor's TDU charges typically include:

  • Monthly Customer Charge: Fixed fee around $3-5/month
  • Delivery Charges: Per-kWh charge (approximately $0.03-0.04/kWh)
  • Transmission Charges: Per-kWh charge for high-voltage delivery

Total TDU charges typically add $30-60 to a typical residential bill.

TDU Charges on Your Bill

TDU charges appear on your bill in different ways depending on your REP:

  • Some REPs show TDU charges as a separate line item
  • Others bundle TDU charges into the overall rate
  • The Electricity Facts Label (EFL) shows total price including TDU

When comparing plans on PowerToChoose.org, prices already include TDU charges.

Understanding Your True Cost

When shopping for electricity plans, always compare the total price per kWh shown on the Electricity Facts Label (EFL), which includes TDU charges. Don't be fooled by advertised "energy charges" that exclude TDU fees.

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Frequently Asked Questions

Can I choose a different TDU to lower my charges?

No, your TDU is determined by your location. If you're in Oncor territory, Oncor is your only TDU option. You can only shop for different retail electricity providers.

How much are Oncor TDU charges?

Oncor TDU charges typically total $0.03-0.05 per kWh plus a small monthly customer charge. For a home using 1,000 kWh, expect $30-50 in TDU charges.

Why do TDU charges change?

Oncor periodically adjusts TDU rates with PUCT approval to cover infrastructure investments, maintenance costs, and operational expenses. Changes are typically announced in advance.