https:\/\/youtu.be\/Z-7TrOIuzE4 Laura and Julie discuss what Texans should know about delivery charges, otherwise known as TDU\/TDSP rates. In this article: What are TDSP charges? How are TDSP charges billed? Electricity Demand vs. Consumption Why Are My Demand Charges So High? How Can I Save Money on TDSP Charges? Some consumers may get a little bill shocked when they see their electricity delivery charges. You'll recognize these charges by different names: transmission charges, Transmission Distribution Service Provider (TDSP) charges, poles and wires charges, or pass-through charges. We're here to explain why you may see high electricity delivery charges on your bill. anchorWhat is a TDSP, and What are Their Charges? TDSP or delivery companies such as CenterPoint, Texas New-Mexico Power, Oncor, and others are the owners, operators, and maintainers of the power lines and meters. Also, they are responsible for maintaining the poles, wires, meters, and other transmission equipment relating to the distribution of energy from the power plant to the final delivery point. TDSP charges are the fees associates with servicing and delivering power to your meter from the generation source.\u00a0The TDSP sometimes called your Transmission and Distribution Utility (TDU), is the utility company that manages the energy grid in your area of the state. Fees are based on your meter's "peak demand" which is the maximum electricity that you use at a given point in time.\u00a0 Although there are fixed costs and other components associated with your TDSP charges, higher demands are generally the primary cause of high electricity delivery charges. anchor How are TDSP Charges Billed? It's important to understand, the TDSP charges are tariff based and approved by the Public Utilities Commission of Texas (PUCT). These charges include the cost of delivering power to your service address, reading your meter, and handling line outages and emergencies. Energy Providers are billed after the TDSP Delivery Charges are assessed on a monthly basis. Because these charges are tariff-based, they apply to all customers based upon classification and they are not bypass-able. \u00a0Also, it is\u00a0important to remember that the TDSP charges for you and your home are going to be the same amount regardless of who you have as your Retail Electricity Provider (REP). Certain TDSP charges are billed on a monthly basis, and some are billed on a usage basis (per kilowatt-hour).\u00a0 For this reason, the total Delivery Charges amount will vary each month depending on your monthly kilowatt-hour usage. Therefore, if you see\u00a0high electricity delivery charges, this is why. Every electricity company can choose how they show these fees on a bill, which can be confusing. With your past electric providers, they may have lumped the fees together with your energy charge. The energy charge is the cost to produce your power. You can always find all charges on the electricity facts label (EFL) of your current plan. Every plan offered by an electricity provider will include these charges. anchor Electricity Demand vs. Consumption TDSP charges are based primarily on \u201chow\u201d you use your electricity and not exactly \u201chow much\u201d you use. \u00a0Therefore, you can have two facilities in the same\u00a0area that consume the same amount of electricity over a year but can be charged with different TDSP charges. anchor Why Are My Demand Charges So High? Have you seen a sudden hike in your TDSP charges?\u00a0 Here are some potential reasons for\u00a0high electricity delivery charges: 1.) Is your current meter faulty or did you get a new smart meter? If you had an analog meter, there is a chance it was not accurately reading your demand and consumption. The new smart meters are equipped to more accurately read your demand and consumption. 2.) The TDSP charges can be proportionately larger if you use less energy. Because there are fixed components, they are associated with the cost to deliver your power. It can cost more to deliver your electricity. And more to serve your meter than to pay for the actual\u00a0electricity\u00a0itself. 3.)\u00a0Is your retail electricity provider marking up your TDSP charges? Energy Ogre CEO, Jesson Bradshaw says the high delivery charges can actually be a good thing. It\u00a0means the Energy Ogre team is doing our job well on your behalf! anchor How Can I Save Money on TDSP Charges? Here are some options to ensure that you are not being charged too much on TDSP charges. These tips should keep your\u00a0high electricity delivery charges at a minimum. 1.)\u00a0 Have an Energy Ogre member care representative\u00a0assist you in requesting that your TSDP\u00a0check for a faulty meter. 2.)\u00a0 An Energy Ogre member can analyze your bill. We will make sure all fees are correct. We make sure the provider didn't mark up the cost of TDSP charges that weren't accounted for in your bill analysis.\u00a0 Note, it is completely legal for retail electricity providers to mark up these charges,\u00a0however, they must disclose this markup in the EFL. 3.) Build up your electricity usage slowly. Don't turn on all your lights, crank down the air, start the laundry, and dishwasher all in a matter of 5 minutes. Wait more than 15 minutes to bring each large component online. Limit the equipment running simultaneously if possible, or at least the level at which they operate. Also, have your HVAC checked regularly. Not an Energy Ogre member yet? Learn more here. \u00a0 Other Articles: How to Get the Best Electricity Plan In Texas In a Contract? Energy Ogre Can Still Help!Energy Ogre vs Power to Choose \u2013 What\u2019s the Difference?