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Sunday, February 23, 2020
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Why do I see a "TDU Surcharge" on my bill?

Your contracted rate for electricity includes a portion of the delivery charges that your local transmission and distribution utility (TDU) bills us for delivering power to your home reliably. In March 2014, the TDU implemented increases to those charges that were authorized by the Public Utility Commission of Texas (PUCT). Specifically, the increase is due to the Transmission Cost Recovery Factor (TCRF). The TCRF is a mechanism that allows the TDU to recover interim increases in wholesale transmission costs above the amounts included in the TDU’s base rates for the construction of new transmission lines. A significant portion of the increase is for new transmission lines that will bring electricity and renewable generation from other regions in Texas into the major load centers in the state.  If you signed up for service or renewed your contract prior to March 1st you may notice a line item on your bill called TDU Surcharge, which recovers these increased costs.

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