Transmission and distribution charges. The 30–40% of your bill nobody explains.
About 30–40% of what you pay each month is delivery charges. That part is regulated. It does not matter which competitive plan you choose, you still pay it
Written by Kyle Aubuchon
Published on Mar 4, 2026
|
3 min read
Reviewed by Hash Manesia, Kyle Aubuchon
Transmission and distribution charges. The 30–40% of your bill nobody explains.
Most Texas electricity advice is about “finding a cheap plan.” Cool. But there is a catch.
About 30–40% of what you pay each month is delivery charges. That part is regulated. It does not matter which competitive plan you choose, you still pay it.
Let’s make delivery charges simple, because they are becoming the biggest reason bills keep rising.
Quick bill anatomy (for humans)
Your bill usually has:
Energy charge
- Competitive
- Based on your plan and usage
- This is the part Gatby helps you optimize
Delivery charges
- Regulated
- Includes transmission and distribution
- Same no matter which company you pick
Taxes and minor riders
- Small but unavoidable
If your bill is $150, roughly $45–$60 of that is delivery.
What transmission charges pay for
Transmission is the long-distance highway system of electricity.
It funds:
- high-voltage lines moving power from generators to cities
- regional upgrades
- reliability improvements for a bigger, hotter Texas
ERCOT’s outlook highlights major transmission expansion as part of the affordability story. These buildouts are necessary, but the costs are recovered through delivery rates.
What distribution charges pay for
Distribution is the neighborhood grid.
It funds:
- poles and local wires
- transformers feeding your apartment complex
- repairs after storms
- upgrades for growth
ERCOT expects tens of billions in distribution investment through the decade. Again, required. Again, repaid through your bill.
Why delivery charges are rising now
Three forces are stacking up.
A big reliability and growth build cycle
Texas is growing. The grid must keep up.
Extreme weather stress
Heat waves, hurricanes, freeze events. Hardening and replacement cost money.
Demand growth that pulls upgrades forward
ERCOT projects explosive load growth this decade. That accelerates build schedules and intensifies cost recovery.
ERCOT states plainly that delivery cost growth is the key driver of residential bill increases through 2030.
The renter problem
Homeowners can add insulation, new windows, solar panels, smart thermostats. Renters cannot. But renters still pay the same delivery charges, and these rising costs hit low-to-moderate income households hardest.
So the best renter strategy is:
- optimize the competitive energy side
- avoid plan traps that punish apartment usage
- track your real all-in rate
What you can control anyway
Even with delivery costs rising, you still have leverage.
Pick plans for 500–800 kilowatt-hours
Apartment bills live here. Many plans are priced to look good at 1,000+.
Avoid fixed fees and tiered gimmicks
A $10 base charge hurts apartments more than houses. Tiered “credits” can turn into silent penalties.
Use your real all-in rate
The advertised rate is a headline. Your all-in rate is your wallet.
How Gatby helps
Gatby does two things renters need:
- We calculate your real all-in rate using your usage pattern.
- We work with providers to find plans that are actually cheap for apartments, not just cheap on paper.
Power Move: check your real all-in rate on Gatby before your next renewal. Email a PDF copy of your bill to bill@gatby.com.
TLDR for renters
- Delivery charges are about 30–40% of your bill.
- They are rising because the grid is expanding and hardening.
- You still win by optimizing the competitive energy side for apartment usage.
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