What is a TDSP?
You surely would have across this acronym for while finding an REP (Retail Electricity Provider). A TDSP (short for Transportation Distribution Service Provider) is the company that is responsible for getting the electricity to your home or office from the generators. In fact, all the poles and wires that you see on the highways and roads are not only operated but also maintained by the TDSPs.
In other words, TDSPs have a huge role to play when it comes to transmitting electricity across a network of high voltage lines, telephone poles, and transformers. Also, they keep a record of the kilowatt-hours (kWh) home or office consumes and get them reported to the REP.
Commonly known as “the wire and pole company”, a TDSP is also responsible for the maintenance of the meter that records the amount of energy being used at any moment and adding it up over time. When it comes to making the necessary repairs and restoring power to consumers, these companies take the charge of doing so in case the power goes out owing to something which could be a natural disaster. Even a small animal climbing on sensitive equipment could result in a power outage.
Electric delivery charges are known by several various names like demand charges, TDSP charges, transmission charges, etc. A TDSP charge is a fee that is associated with servicing and delivering power to the customer’s meter from the source of generation. No doubt, there are several costs associated with the maintenance of a large system of millions of miles of electrical lines and millions of meters.
These charges come from your local Transmission Distribution Service Provider, which is also called as your utility company or Transmission and Distribution Utility (TDU). This delivery charge is a blend of standard monthly fees and usage-based fees. They include the cost of maintaining the wires to your home and distributing the electricity.
Based on the units of electricity one consumes monthly, Texas energy companies increase or decrease their fees. And all delivery charges are combined into one single item “TDSP Delivery Charges.” These charges are more like paying for shipping charges when you make an online purchase.
If you buy some clothing items at your favorite online retailer, there is a cost associated with getting your outfits delivered to your home from the manufacturer. When you get the bill, this cost usually shows up as a ‘Delivery’ line item on it. So there’s a cost associated with the electricity delivery to your home. These charges can be found on your electricity bill.
Texas TDU Delivery Charges, also known as Transmission and Distribution Utility Charges, have a great impact on the electricity bill you receive every month. Delivery rates fluctuate every March (usually down) and every September (usually up).
TDU delivery charges pay for maintaining the poles and wires delivering energy to your home. Also, they pay for the meters measuring the electricity. The delivery rates from the top utility companies are passed through to the customer without markup, which are included in your monthly electricity bill from your retail electricity provider.
Simply put, TDU charges are the fees charged by your local TDU for getting electricity to your home, taking care of the power network (or the grid). The TDU manages the electric meter for your home, high voltage wires, and a lot more. Approved by the Public Utility Commission of Texas (PUCT), these charges are passed through to you without any markup, which signifies that you are not paying more than you should for electricity.
No matter who the utility provider, these charges are applied to all residential customers serviced by the TDU.
Well, TDU delivery rates change twice each year: March 1 and September 1.
The PUCT must approve delivery charges. It is good to know if there is a change in delivery rates and these rates impact your bill, your electricity service provider can provide the details of the change.
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Blogger & Writer from Dallas, Texas
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