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Understanding Your Bill: Energy Delivery Charges

Chris Sully April 7, 2011

A common question received by Reliant Energy’s Customer Care team has to do with the “Energy Delivery Charges” that appear on monthly bills.  For those who are interested, here is an explanation of these “Energy Delivery Charges,” also referred to as TDSP Delivery Charges.

Recurring Transmission Distribution Service Providers (TDSP) charges account for the costs associated with the transmission and distribution service provided by the local utility to deliver electricity to the customer’s service address, such as:

  • Delivering power using existing power lines
  • Handling outages and emergencies
  • Reading the meter
  • Ensuring the meter works properly

TDSP Delivery Charges are assessed by the TDSP on a monthly basis and are billed to all energy providers. The customer’s monthly usage as well as changes in the cost from the TDSP charged can impact the amount they are charged.

These charges are regulated by the Public Utility Commission of Texas.

Every electricity plan offered by Reliant Energy includes TDSP charges.

Recurring TDSP charges may be passed on to Reliant customers in three different ways:

(1) Bundled
(2) Partially Unbundled
(3) Unbundled

TDSP charges can make up 25-35% of the bill for typical Residential customers.

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