Understaing Changes in TDSP Charges and Their Impact on Your Electricity Bill
Since 2002, much of the Texas electricity market1has had the ability to choose a retail electricity provider (REP), such as XOOM Energy. 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.
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 electricity. The amount assessed may fluctuate based on your monthly 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. As of September 1, 2023, all TDSPs have increased certain energy delivery rates. Any increases or decreases in TDSP charges will be reflected on your bill.
To make your TDSP Delivery Charges easy to find, we list it as a separate line item on your monthly XOOM Energy electricity bill.
Frequently Asked Questions
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 increase?
TDSP fees typically change at least twice per year, including March and September. 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.
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.