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What Is a TDU or TDSP? The Texas Delivery Company Explained

In the competitive part of Texas, one company sells you the electricity and a different one delivers it. The delivery company is called a TDU or TDSP, and it is the one you call when the power goes out.

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What the TDU does

  • Owns and maintains the poles, wires, transformers and meters that carry power to your home.
  • Restores service after outages and storms.
  • Reads the meter, and runs the smart meter data portal that customers and providers use.
  • Carries out connects, disconnects and moves when your provider requests them.
  • Charges for delivery, which your provider passes through on your bill.

It does not sell electricity, set your plan price or send your bill. Those jobs belong to your retail electric provider. See what a retail electric provider is.

The main delivery companies

Four companies deliver power to most of the competitive Texas market: Oncor, CenterPoint Energy Houston Electric, AEP Texas and Texas-New Mexico Power. Which one serves you depends on your address.

Largest Texas delivery companies by delivery-only residential customers, 2025
Delivery companyHomesDelivery cents per kWh
Oncor Electric Delivery3,545,8145.64
CenterPoint Energy Houston Electric2,529,0395.41
AEP Texas Central793,8965.91
Texas-New Mexico Power237,9307.09

Source: U.S. Energy Information Administration, Form EIA-861 (final 2025 data), delivery-only residential service. These are 2025 averages, not tariff rates. A utility's profile on this site is independent and not affiliated with it.

Not every part of Texas is in the competitive market. Some areas are served by municipal utilities or electric cooperatives that sell power directly, and some are outside the main grid. Check your bill or ask your address provider. The find my electric company tool shows which utilities report service in your county.

Where it shows up on your bill

Your bill, or the plan's Electricity Facts Label, lists the delivery charges under a name such as TDU delivery charges, TDSP charges or delivery charges. These are usually a fixed monthly amount plus a per-kWh amount. They are passed through, which means they come from the delivery company, and a cheaper plan does not lower them.

The Electricity Facts Label is a standard disclosure that Texas rules require for residential plans. It shows the average price at three usage levels including delivery. Read the rule at 16 Tex. Admin. Code § 25.475, checked October 9, 2026. See also how to read a Texas plan label.

Who to call for what

Who to contact in competitive Texas
ProblemContact
Power is outYour delivery company (TDU). It owns the lines and restores power.
A downed line or a damaged meterYour delivery company, and call 911 if a line is down and there is danger.
A bill question or a plan changeYour retail electric provider.
A smart meter data questionThe Smart Meter Texas portal or your delivery company.
A complaint you cannot settleThe Public Utility Commission of Texas.

Moving or starting service

When you move in, you choose a retail electric provider, and that provider asks the delivery company to connect or switch service at your meter. The request uses the meter's ESI ID, which identifies the meter at your address. The delivery company carries out the connection and, if the meter needs a visit, schedules it.

Fees for a visit, a reconnection or a special read come from the delivery company and are passed through by your provider, so ask your provider which fees apply before you schedule. Our ESI ID page explains how to find your number.

Outages and your account

Delivery companies run outage maps and alert systems, and most let you report an outage by phone or online. Sign up for alerts with your delivery company, since your retail provider does not run the lines. If someone in your home relies on electric medical equipment, ask your delivery company what programs exist for customers like you.

Three common misunderstandings

  • "Switching providers changes who delivers my power." It does not. The delivery company stays the same.
  • "A cheaper plan lowers the delivery charge." It does not. The charge is set by the delivery company and passed through.
  • "My provider will fix an outage." It cannot. Report outages to the delivery company.

Sources and further reading

Frequently asked questions

What does TDU stand for in Texas?

Transmission and distribution utility. The related term TDSP means transmission and distribution service provider. Both refer to the company that owns the poles and wires and delivers power to your meter.

Can I choose my TDU or TDSP?

No. The delivery company is set by where you live. You can change your retail electric provider, but not the company that delivers the power.

Who do I call when the power goes out in Texas?

Your TDU, the delivery company, since it owns and repairs the lines. Your retail provider cannot restore power.

Are TDU charges the same for every provider?

In a given delivery area, yes. Providers pass through the delivery company’s charges, so switching providers does not change them.

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