What is a TDU
… and what are TDU charges…
You have questions, we have answers. A TDU, or more formally, Transmission and Distribution Utility, is the company that Transmits and Distributes electricity to your home from power generators (like wind farms, solar, etc.) TDUs manage “The Grid” of wires and poles. They’re the ones who get in those buckets on a crane and fix high voltage stuff the rest of us want no part of. So, while many companies provide your electricity service, only the TDUs are allowed to manage the poles, wires and other high-voltage stuff that distributes electricity from the power generators to your home. That’s the TDU, and that’s how we backup our claim that you get the same power from us as you do from the “big guys” – we all get it from the same generators and delivered to your home by the same TDUs. Plus, if there’s ever a power outage in your area or repairs are needed, the TDU handles it. And because they’re transmitting and delivering all this power to your home, they charge a fee, two fees actually: a monthly TDU Charge and a per kWh (usage) TDU Charge. We simply pass those charges through to you without markup. These TDU charges can be up to 40% or more of your monthly energy expense. Of course we don’t like them any more than you do, but the TDU is kind-of important as they connect your home to the power grid, and they manage all the high voltage wires and repairs – and that’s how TDUs work here in Texas.
In short, TDU Charges are the costs your local TDU charges to get electricity to your home and take care of the power network (the grid). Your TDU manages the high voltage wires, the electric meter for your home, storm restoration, and lots more. These charges are approved by the Public Utility Commission of Texas and get passed through to you with absolutely no markup by us – so you’re not paying more than you should for electricity. TDU Charges apply to all residential customers serviced by the TDU, regardless of who their provider is. For more details on your TDU Charges, chat with or call us and ask for a Statement of Usage and Payments (call it a “SUP” and we’ll know what you’re looking for).
In a word, yes. TDU Charges can change periodically— not very often— but never say never. It’s something we have no control over. But since you’re with Pogo, you’re on a no deposit, no long-term contract plan so you can choose to leave at any time without penalty. Look, we’re out to save you money. Period. We keep our prices as low as possible—all part of our master plan to keep winning your business every day.
There are two different TDU Charges: monthly and usage. We pass through the monthly charges on a daily basis, and then do a true-up for months that aren’t 30 days (you know, like January, February, March, etc.). We also pass through the usage charges each day based on your actual usage (in kilowatt hours, aka kWh). For a full breakdown of all the TDU Charge components, click here, but here’s a useful summary of the current TDU Charges. Note also that TDUs serve specific areas within Texas. Generally, ONCOR serves the Dallas / Ft. Worth area (DFW) and parts of central/west Texas; CenterPoint Energy serves the Houston area; AEP Texas Central generally service Corpus Christi and the Rio Grande Valley; and AEP Texas North serves parts of north and central Texas.