If you have recently moved to Texas or switched electricity providers, you might find yourself asking a common question: Why are there two different company names associated with my home’s electricity? You might choose an eco-friendly footprint with a premier provider like Gexa Energy, but when a storm rolls through, you see a utility truck from Oncor or CenterPoint Energy servicing the physical lines on your street. Understanding this division of labor is key to navigating the unique, deregulated Texas energy market.

Retail Electric Providers vs. Utilities: Who Does What?

In the Lone Star State’s deregulated market, the process of getting power to your home is split between two distinct entities: your Retail Electric Provider (REP) and your Transmission and Distribution Service Provider (TDSP), also referred to as a TDU. To put it simply, your REP is the company that sells you electricity and manages your billing, while your TDSP is the utility company that physically delivers that electricity to your home.

If you are trying to understand your monthly electricity bill, you may wonder, what is a transmission and distribution service provider and why do they charge fees? The TDSP is the entity responsible for maintaining the physical infrastructure of the grid—including poles, wires, transformers, and smart meters. Because they own and maintain this physical network, they charge regulated delivery fees to transport electricity from power plants to your home. These charges are approved by the Public Utility Commission of Texas (PUCT) and are passed through to your monthly statement, regardless of which REP you choose.

The Six Major Texas TDSPs and Their Territories

Texas is divided into specific utility service territories. While you have the power to choose your REP, you cannot choose your TDSP; it is determined strictly by your physical geographic location. The six major utility companies servicing the ERCOT grid include:

• Oncor: The largest TDSP in Texas, servicing millions of customers, making it easy to secure competitive electricity dallas options.
• CenterPoint Energy: Servicing the Houston metropolitan area and surrounding regions, ensuring reliable delivery for those shopping for electricity Houston.
• AEP Texas Central & AEP Texas North: Covering vast portions of South, West, and Northern Texas.
• Texas New-Mexico Power (TNMP): Servicing various pockets of the state, including areas near the Gulf Coast and West Texas.
• Lubbock Power & Light (LP&L): The newest addition to the deregulated market, transitioning its customers to competitive choice in 2024.

How Green Energy and Your TDSP Work Together

When you choose an eco-conscious provider like Gexa Energy, you can opt for the Gexa Eco Saver Plus 12 Plan. Under this plan, Gexa offsets 100% of your electricity usage with renewable energy credits (RECs) for a full year. However, it is important to realize that the physical electricity flowing into your home is still managed by your local TDSP. The utility company operates the physical wire grid, ensuring that the equivalent amount of clean energy you purchase is safely delivered to the statewide grid, even as they maintain the infrastructure that services your neighborhood.

Simplifying Your Search with ElectricityOne

Navigating the complex landscape of TDSP fees, REPs, and green energy plans can feel overwhelming. That is where ElectricityOne comes in. With over 20 years of experience helping Texans find reliable, quick, and courteous electric service, we streamline the shopping process. We act as a trusted platform that connects residents and businesses with the finest REPs in the state, making it simple to compare options whether you are looking for business electricity plans or a flexible prepaid electric service.

Our meticulous provider selection process ensures that we only partner with REPs that offer:

• Significant cost savings on your energy supply.
• Transparent disclosure of all costs, including TDU pass-through charges, so there are no surprises on your bill.
• Long-term customer satisfaction and reliable support.

Instead of spending hours scrolling through the state’s confusing power to choose portal, our experts do the heavy lifting for you, ensuring you understand exactly what you are paying for—from the energy supply to the utility delivery charges.

Understanding Your Bill and Knowing Who to Call

By understanding the division between your REP and your TDSP, you can manage your utility budget more effectively. Remember, if you experience a power outage or see a downed power line, you should always contact your local TDSP (such as Oncor or CenterPoint) directly, as they are the ones equipped to handle physical emergencies. For billing questions or plan changes, you will contact your REP, like Gexa Energy.

Ready to find the best energy plan for your specific utility delivery area? Call 1.844.567.2863 today to speak with our Texas energy experts.

Frequently Asked Questions

Can I choose a different TDSP if I do not like my current utility?

No. While you have the freedom to choose your Retail Electric Provider (REP), your TDSP is determined solely by your physical location. The physical wires and poles connected to your home belong to the utility company authorized to service your specific geographic area.

Why do TDSP charges change on my bill?

TDSP charges are regulated by the Public Utility Commission of Texas (PUCT) and can be adjusted twice a year. These charges include a fixed monthly customer charge and a volumetric charge based on your total kilowatt-hour usage, which is passed through directly on your bill without any markup from your REP.

Does choosing a 100% green energy plan bypass TDSP delivery charges?

No. Even if you enroll in a 100% renewable plan like the Gexa Eco Saver Plus 12 Plan, your local TDSP must still physically deliver the electricity to your home and maintain the grid infrastructure. Therefore, standard utility delivery charges will still apply to your monthly statement.