VIDEO SUMMARY: Understanding the TDU Fees and other Charges on your Texas Electricity Bill

By Adam P. Newton, November 19, 2012, FAQs, News

Bounce Energy believes that you, dear customer, are better served when you’re as informed as possible. This is why we develop great YouTube videos and a detailed FAQ section so that you have a host of resources available to you. With our new “Understanding TDU Fees & other Taxes and Charges on Your Texas Bounce Energy Bill” video, we want to help our Texas customer understand exactly what you’re seeing on your bills when it comes to the Transmission and Distribution Utility (TDU) Fees.

This video provides a detailed breakdown of our current billing setup, complete with diagrams and images displaying how Bounce Energy has un-bundled the TDU Fees from the rate per kilowatt-hour (kWh) that we charge you for the electricity you use. It will also discuss other fees and taxes that you might see on your bill

In general, the TDU Fees consist of the various charges assessed by your local Transmission and Distribution Service Provider (TDSP) to transmit and deliver your electricity to your service address. In other words, the TDSP is the utility company that owns, maintains, and reads the lines, poles, and meters in your area. The five TDSPs for the deregulated parts of the Texas energy grid are Oncor, CenterPoint, Texas-New Mexico Power (TNMP), AEP North, or AEP Central. The TDU fees you are charged are itemized in the gray box on the right hand side of Page 2 of your invoice, while the left-hand side of Page 2 contains a line item that names your TDSP specifically.

All electricity providers like Bounce Energy pass through these TDU Fees, since they are assessed by the TDSP, but we do not all pass them through to customers in them the same way. Some bundle the TDU Fees into the rate per kWh you are charged for your usage, while others have the TDU Fees listed separately (or un-bundled) from the rate per kWh you are charged.

Bounce Energy charges you for your kWh usage costs (known as the “Cost of Usage” on your bill), and then separately passes through the TDU charges assessed by the TDSP for your area. With Bounce, the energy rate you are charged per kWh for your usage is separate from the TDU Fees that the TDSP for your area charges you to transmit and deliver electricity to your service address.

In either case, the TDU Fees are determined and assessed by the TDSP for your area, and Bounce passes them through to customers without mark-up. I would encourage you to view the Electricity Facts Label (EFL) for your plan that was active when you signed up or renewed with Bounce to view the rate/fee breakdown between Bounce and your TDSP / utility company in more detail. You can also visit our Frequently Asked Questions page for a detailed explanation of the TDU Fees on your bill.

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Born and raised in Southeast Texas, Adam P. Newton never acquired the charming accent that most life-long Texans possess in spades, but he’s OK with that. Adam currently creates and curates online content for Direct Energy. Before his career in content marketing, Adam spent several years toiling as a music journalist.

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