Skip to content

Knowing about TDU fees

November 15, 2012

The Transmission & Distribution Utility (TDU) fees include different charges billed by your local TDSP (Transmission & Distribution Service Provider). Some common elements of TDU fees consist of:

  • Advanced Metering Charge: This amount is evaluated to recover a TDU’s charges related to Advanced Metering Systems, to the level that they aren’t recovered in the standard metering charge of a TDU.
  • Metering Charge: This is assessed to recover charges of a TDU for metering its customer’s consumption, to the level that the TDU charge is a separate entity totally for that purpose, which is approved by the PUC (Public Utility Commission).
  • Competition Transition Charge: This is calculated to recover charges of a TDU for non-securitized costs linked with the transition to competition.
  • Nuclear Decommissioning Fee: This charge is evaluated to recover a TDU’s expenses for decommissioning of nuclear generating locations from service, decreasing residual radioactivity to a point that allows release of the property for unrestricted utilization and termination of license.
  • System Benefit Fund: This non-bypassable charge is approved by the PUC to not go beyond 65 cents per megawatt-hour, which in turn funds the one-time bill payment support, low-income discount, commission administrative expenses, customer education, and low-income energy efficiency plans.
  • Distribution System Charge: The TDU assesses this amount based on the cost of delivery of electricity to a consumer over wires and poles as well as other TDU facilities, but the amount doesn’t include discretionary charges.
  • Transmission System Charge: This refers to one or more than one TDU surcharge(s) on a consumer’s bill in any group. This consists of charges billed by the TDU as tariff riders.
  • Transition Charge: Once a consumer decides to move over to the competition, this charge is evaluated to recover a TDU’s costs for securitized expenses linked to the transition.

As the charges mentioned above are recurring fees, typically every electricity bill will feature them. However, while some of these are flat fees that won’t fluctuate, others may differ in each bill depending on how many kilowatt-hours you utilize in a particular billing cycle. For example, while every bill should show a fixed Advanced Metering Charge, Metering Charge will vary from one bill to another, depending on the kWh you consume in a specific billing cycle.

Your TDU fees may also feature some non-recurring fees that are assessed occasionally, such as the Move-In Fees, Disconnect / Reconnect Fees, Forward Switch Fees, Meter Tampering Fees, Meter Re-Read Fees etc.

Irrespective of whether they are non-recurring or recurring fees, TDU fees will be evaluated by the TDSP for your region.

About Shop Texas Electricity- Shop Texas Electricity helps consumers and businesses compare and shop for their electricity plans in Texas. Learn more about Shop Texas Electricity by visiting us at www.ShopTexasElectricity.com

Comments are closed.

Follow

Get every new post delivered to your Inbox

Join other followers: