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Understanding Your Bill: What are TDSP charges?

February 15, 2018
by dmirza

Senate Bill 7 did away with monopolistic utilities January 1, 2002. At that point, you were given the ability to choose your energy provider, also known as Retail Electric Providers (or REPs).

Although there are many REPs to choose from, all of them continue to utilize the same “wires and poles” that run down your street and into your home. These wires and poles are managed and maintained by companies called, “Transmission and Distribution Service Providers” (or TDSPs). In addition, TDSPs also read your electricity meter.

TDSPs, like all service providers, charge fees based on rates authorized by the Public Utility Commission of Texas. These fees, however, are not directly billed to you.They are billed directly to your REP, who in turn passes them through to you. So when you review your electricity bill, you will notice these fees in addition to the energy rate.

And please note that the TDSP fees will vary month to month based on your actual usage.

Regardless of which REP you choose, it is important you understand that the same TDSP rates will be the same.To find out more about your TDSP fees, you may visit The Public Utilities Commission of Texas (PUCT) website.

Visit our website, Shop Texas Electricity, to the find the best electricity rates and plans in Texas. Signing up with the retail electric provider of your choice takes only minutes!

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