Understanding the specific line items on your Texas electricity bill is the first step toward managing your monthly energy costs.
Key Takeaways
- Oncor delivery charges represent the cost of maintaining the grid, including poles, wires, and meters, and are passed through directly to consumers without markup by retail providers.
- The current 2025-26 Oncor residential delivery rate consists of a fixed monthly fee plus a variable rate per kilowatt-hour (kWh) that changes based on regulatory approvals.
- You cannot negotiate these delivery fees, but you can reduce your total cost by lowering your energy consumption through home efficiency upgrades and smart usage habits.
If you live in the Dallas-Fort Worth metroplex or other parts of North Texas, you have likely noticed a specific line item on your electricity bill labeled “Oncor Delivery Charge” or “TDU Delivery Charges.” For many residents moving into a new home or reviewing their budget, this fee can be a source of confusion and frustration, especially when it seems to increase despite your best efforts to shop for a low electricity rate.
If your Oncor delivery charge feels high, it’s usually because you used a lot of electricity that month, and because a big share of the fee is tied directly to your usage. While you have the power to choose your retail electricity provider, the delivery charges are set by the Transmission and Distribution Utility (TDU) and approved by state regulators. We are here to help you decode exactly what these charges are, how to calculate them for your specific usage, and why they are necessary for keeping the lights on across Texas.
What Is the Oncor Delivery Charge?
If you want the Oncor delivery fee explained simply, it is a fee collected to cover the cost of delivering electricity to your home. While your Retail Electric Provider (REP), companies like TXU, Reliant, or Green Mountain Energy, sells you the actual electricity, Oncor is the utility company responsible for the physical infrastructure. This includes maintaining the power lines, repairing poles after storms, and managing the advanced smart meters on the side of your house.
It’s important to understand that your REP does not profit from this charge. They collect it from you and pass it directly to Oncor. Even if you switch electricity providers to find a cheaper energy rate, the Oncor delivery charges will remain exactly the same because they are tied to your physical location, not your electricity plan.
Current Oncor TDU Delivery Charges and Rates
To understand your bill, you need to know the current numbers. The Oncor delivery charge is actually made up of two distinct parts: a fixed monthly customer charge and a variable charge based on how much energy you use. These rates are reviewed and adjusted periodically, often around March and September in recent years, after approval by the Public Utility Commission of Texas (PUCT). The exact timing and size of changes depend on regulatory decisions.
As of September 1, 2024, a typical residential Oncor TDU delivery rate structure looks like this:
- Fixed Monthly Charge: $4.23 per month. This applies regardless of how much electricity you use.
- Variable Rate: Approximately 5.1893 cents per kWh. Your exact rate is set in the official tariff and appears on your plan’s Electricity Facts Label (EFL).
These rates cover various riders and tariffs, including transmission cost recovery factors and energy efficiency cost recovery factors. When you look at the “Average Price per kWh” on an electricity plan advertisement, it usually includes an estimate of these Oncor charges based on 1,000 or 2,000 kWh of usage.
How to Calculate Your Oncor Delivery Fee
Calculating your exact delivery fee requires a little bit of math, but it is the best way to audit your bill for accuracy. You can calculate your total Oncor fee using this simple formula: Fixed Charge + (Monthly Usage in kWh × Variable Rate) = Total Delivery Charge.
The example below uses the rates effective as of September 2024 to show how the math works. Always check your EFL or the PUCT/Oncor sites for the exact current numbers on your bill.
- Step 1: Start with the fixed monthly fee of $4.23.
- Step 2: Multiply your usage (1,000 kWh) by the variable rate ($0.051893). This equals $51.89.
- Step 3: Add the fixed fee ($4.23) to the variable total ($51.89).
- Total Oncor Charge: $56.12.
This math highlights why your delivery charges skyrocket in the summer. If your usage doubles to 2,000 kWh to run the air conditioner, that variable portion doubles, significantly increasing the total fee.
Pro Tip: Check your Electricity Facts Label (EFL). Every plan has an EFL document that explicitly lists the current TDU delivery charges under the “TDU Delivery Charges” section. Always read this before signing up.
Why Do Oncor Rates Keep Going Up?
Many Texas residents ask why these fees seem to increase year over year. The primary driver for rate increases is the cost of infrastructure investment. Oncor is legally allowed to recover the costs associated with maintaining and upgrading the grid.
Several factors contribute to recent increases:
- Grid Resiliency: Following major weather events, Oncor invests heavily in hardening the grid against winter storms and extreme heat.
- Population Growth: As DFW and North Texas expand, new transmission lines and substations must be built to reach new developments.
- Advanced Metering Systems: The cost of installing and maintaining smart meters, which you can monitor via Smart Meter Texas, is recovered through these fees.
Oncor vs. CenterPoint: How Do DFW Rates Compare?
If you have moved to North Texas from Houston, you might notice a difference in your delivery charges. Texas is divided into several TDU service areas, with Oncor and CenterPoint Energy being the two largest. Generally, Oncor (serving Dallas, Fort Worth, and parts of West Texas) and CenterPoint (serving the greater Houston area) have comparable rates, but they are rarely identical.
Historically, rates fluctuate between the two based on regional recovery costs. For example, if a hurricane hits the Gulf Coast, CenterPoint rates may rise to cover repair costs. Conversely, ice storm damage in North Texas can drive Oncor rate cases. Comparing the two is useful for understanding regional differences, but remember that you cannot choose your TDU, it is determined solely by your zip code.
| Feature | Oncor (North Texas) | CenterPoint (Houston) |
|---|---|---|
| Primary Service Area | Dallas, Fort Worth, Waco, Midland | Houston, Galveston, surrounding areas |
| Primary Cost Drivers | Grid expansion, winter storm hardening | Hurricane recovery, coastal resilience |
| Can You Switch? | No (Location-based) | No (Location-based) |
Can You Lower Your Oncor Delivery Charges?
Because the Public Utility Commission of Texas regulates these rates, you can’t call Oncor to negotiate a lower fee, nor can you switch providers to avoid them. However, you can lower the total amount you pay by reducing your electricity consumption.
Even though you can’t change the Oncor delivery rate itself, you can shrink your Oncor delivery charge by using fewer kilowatt-hours. Because most of the fee is usage-based, every kWh you avoid saves you both energy costs and delivery costs on the same bill. Implementing sustainable changes, such as installing LED lighting, upgrading to a smart thermostat, or improving your home’s insulation, directly reduces the “variable” portion of the delivery fee. For more ideas on reducing usage, check out our guide on how to save on your electric bill.
Eco Edge: Solar panels can significantly offset these costs. By generating your own electricity, you pull less power from the grid, which lowers the variable portion of your Oncor delivery charge for every kWh you self-consume.
Take Control of Your Total Energy Costs
While seeing the Oncor delivery charge on your bill can be annoying, understanding that it pays for the wires and poles that keep your home powered helps put it in perspective. You may not be able to change the rate, but by understanding the math and focusing on energy efficiency, you can exert control over the final total. Focus on what you can change, your usage habits and your home’s efficiency, to make smart, sustainable decisions that keep your bills manageable regardless of the season.
FAQs About Oncor Delivery Charges
Why is my Oncor delivery charge higher than my energy charge?
Do solar panels eliminate Oncor delivery charges?
How often do Oncor rates change?
Can I switch TDUs to get a better rate?
Where can I find the official Oncor tariff rates?
Does the Oncor delivery charge include taxes?
Why did my Oncor delivery charge change in September?
About the Author
David has been an integral part of some of the biggest utility sites on the internet, including InMyArea.com, HighSpeedInternet.com, BroadbandNow.com, and U.S. News. He brings over 15 years of experience writing about, compiling and analyzing utility data.