When you flip a switch in the Lone Star State, your electricity’s journey to your home relies on a unique, two-part system. While you have the power to choose the retail electric provider (REP) that bills you, a completely different company physically delivers that power. These behind-the-scenes entities are known as Transmission and Distribution Service Providers (TDSPs), or simply, your local utility companies.
Understanding Your Texas TDSP
No matter which retail provider you select, your physical poles, wires, and meters are owned and maintained by the TDSP assigned to your geographic region. In Texas, there are four major investor-owned utilities: Oncor (serving Dallas-Fort Worth and surrounding areas), CenterPoint Energy (powering Houston and parts of southern Texas), AEP Texas (covering North, Central, and South Texas), and Texas-New Mexico Power (TNMP, serving various pockets across the state). When there is a storm or a power outage, it is your local TDSP—not your retail provider—that dispatches crews to restore your electricity.
How TDSPs Impact Your Monthly Bill
Your utility company charges fees for maintaining the electrical grid, and these delivery charges are passed directly to you on your monthly bill. When you compare Texas electricity rates, it is crucial to understand that pricing is based on each specific area’s utility rates. Furthermore, average prices per kWh are calculated using standard 1,000 kWh or 2,000 kWh monthly usage blocks, which incorporate both fixed and variable local charges from your regional utility.
At BulbOne, we serve as an expert guide and independent platform to help you navigate these regional complexities. Please note that electricity service offers can be fixed or variable, and the rates we display are gathered directly from each provider’s Electricity Facts Label (EFL) for comparison purposes only. Rates are subject to change and are only finalized when your agreement is completed. Additionally, BulbOne is an independent resource and is in no way associated with PowerToChoose.org, which is operated by the Public Utility Commission of Texas.
Want to check the most competitive rates available in your specific Texas zip code? Just call 1-844-567-2863 to speak with our local energy experts today.
Frequently Asked Questions
Can I choose a different TDSP?
No. Your TDSP is determined strictly by your physical location. While you can choose your retail electricity provider, you must use the utility company assigned to your regional delivery zone.
What is the difference between a retail provider and a TDSP?
A retail provider sells you electricity plans and manages your billing. The TDSP owns the physical infrastructure, reads your meter, and repairs power lines during outages.
Are TDSP delivery charges fixed or variable?
TDSP charges consist of both a fixed monthly base fee and a variable rate based on your actual kWh consumption. These charges are approved by the Public Utility Commission of Texas and change periodically.


