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TDSP

Find electricity providers and explore plans in your TDSP

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Why are electricity utilities important?

In deregulated energy markets, the difference between Texas utilities and Texas electricity providers can seem difficult to understand if you haven’t done a lot of research. However, it’s important to know what a utility is because utility charges will show up on your electricity bill every month.

What is an electricity utility / TDSP?

On a high level, a Transmission/Distribution Service Provider (TDSP) or electricity utility is a company that ensures that electricity gets from your electricity provider to your home. TDSPs cover territory, which means you can usually find your electricity utility by zipcode. If you’re looking up competitive electricity rates by zipcode, you’re functionally looking up a plan based on your TDSP.

Electricity service can basically be divided into two processes. There’s the process of choosing a plan and supplying the electricity, and then there’s the process of delivering that plan’s electricity to your home. In a regulated market, the utility would handle both of those processes, but in a deregulated energy market, electricity providers offer the plans to consumers, and electricity utilities or TDSPs deliver the electricity to your home. Electricity providers offer different plans in different TDSPs, so if you sign up for a plan in Houston, you won’t always be able to find the same plan in Dallas, or vice versa.

So, if you wanted to switch to a plan with renewable energy, you would choose a new plan with your electricity provider that offered renewable energy. However, if you experienced a loss of electricity at your address, you would want to call your electricity utility or TDSP to restore your power.

What are TDSP charges on my electricity bill?

Electricity distribution requires maintenance and upkeep, which is why on your electricity bills, you’ll typically see a TDSP charge, or a distribution fee. It can also be called a TDU charge, which stands for Transmission and Distribution Utility. That charge isn’t from your electricity provider, but it is from your electricity utility. It’s analogous to a shipping charge on an online purchase, or the delivery fee on a food delivery app. TDSP charges cover the cost of distributing your electricity to you over the month, as well as the cost of maintaining electricity lines and meters.

TDSP FAQs

Do TDSPs provide electricity?
Electricity utility in a deregulated marketss do not directly electricity. Instead, they work with your chosen electricity provider to deliver power to your home through a network of distribution lines and meters.
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How do I find cheap electricity rates in my zipcode?
Finding a cheap electricity plan in your zipcode is simple and free using Gatby! Just enter your zipcode at the top of the page, and see all the plans offered in your area, from cheapest to most expensive. You can also filter by provider, plan length, or how much renewable energy your provider offers.
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How do you figure out TDSP fees?
This is based on the cost. A flat fee is charged for some fees each payment cycle, while usage-based fees are charged based on how much was used. Some fees may change based on demand for business customers. A demand price is based on how much electricity is sent to or taken away from a system at a certain time or over a set amount of time during the billing cycle.
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If I move providers, will my TDSP fees change?
No matter which REP serves you, TDSPs charge the same fees for your property. Fees might change if you move to a different TDSP area.
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How often do fees for the TDSP go up?
At least twice a year, in March and September, TDSP fees change. When things change, fees may go up or down overall.
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