Written by 9:00 am Industry News, Think Energy Views: 207

Texas Utilities Increasing Delivery Charges

Starting September 1st, all Texas transmission and distribution utilities (also known as TDUs or TDSPs) are increasing their delivery charges.

Electricity delivery charges are used to service and maintain your area’s electricity infrastructure. These charges pay for the poles and wires that deliver electricity to your house.These charges are separate from the rate you pay for your electricity, and are applied equally to all residential electricity customers regardless of the energy provider they choose..

TDU delivery charges usually change twice a year, in May and September, to account for seasonal differences in the TDU’s operational and maintenance costs. The TDUs bill Think Energy for each customer it serves on a monthly basis, and Think Energy passes these charges on to you on your monthly bill without any additional mark up.

How delivery charges are calculated

Your bill has two parts to it, the cost of the energy itself and the utility company’s delivery charges. Delivery charges make up 30 to 40% of your monthly bill.

A TDU’s charges are estimated to reflect how much it will cost to operate and maintain the transmission and delivery network required to deliver electricity to your home. Because each TDU has a monopoly in its respective service territory, these estimates must be submitted for review and approval by the Public Utility Commission of Texas (PUCT), the state government entity that oversees the electricity market. The PUCT must approve every change in electricity delivery rates for each of the five TDU companies before any rate changes can be implemented by the TDUs.

Updated Rate Comparison Guide & Texas Marketing Tools

The September Rate Comparison Guide is now available but temporarily does not provide any “Current Residential Rate” to compare in Texas markets. These rates are calculated as an average of the rates offered in each of the TDU service territories, inclusive of the TDU delivery charges. Since most other suppliers have not yet updated their rates based on these new delivery charges, we cannot yet provide an accurate rate to compare for Texas markets.

We expect that most of the other energy providers in Texas will update their product offerings to reflect the increased TDU charges by the end of next week. At that time we will update the Rate Comparison Guide and other Texas marketing materials to show an accurate comparison of our rates to those of the other providers in the market.

Questions? Comments? Send us an email at EASupport@ThinkEnergy.plus.  

Think+ is a registered broker of electricity in Texas

●Unlike in other states, Think Energy, LLC is not a licensed Retail Electric Provider by Public Utility Commission of Texas.

●Think+ EAs can market electricity under the “Think Energy” brand that has been licensed to MI Texas REP 2, a Retail Electric Provider licensed by the Public Utility Commission of Texas.

●As a Think+ EA, you will receive the same credit in the Think+ compensation plan for sales made of Think Energy branded products in Texas as you do for Think Energy products in other states and districts.

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