Delivery rates for Texas electricity change twice a year, in March and September. And as of September 2023, the price you pay per kilowatt hour to get power to your home is at its highest level in five years.
Why do Texas Electric Delivery Rates Change?
Electric delivery rates pay for the infrastructure that gets power to your home or business.
While electricity supply is deregulated in most of Texas, the Public Utility Commission of Texas regulates your local utility company.
Each utility company must submit proof of their infrastructure and delivery costs. And they receive a guaranteed rate of return on that investment, to pay for these essential services.
Trends – Texas Electricity Delivery Rates
This chart shows Texas electric delivery rate trends for the past 5 years.
This dramatic increase in delivery fees is due to several factors: transmission and distribution costs (getting power from where it’s generated to where it’s needed), peak demand and infrastructure maintenance.
How Much is the Power Delivery Charge in Texas?
You can find a multi-year history of Texas electric delivery fees using the links below.
Cost Savings With Latest Electric Delivery Rates
With these September 2023 TDU rate increases, delivery fees account for around 50% of your electricity bill in Texas.
The monthly flat fee for delivery hasn’t changed much. It’s the volumetric price, aka the price per kilowatt hour that’s increased.
That means you can keep your bill lower by adopting energy conservation habits.
Here are some references to get you started: