Texas Delivery Charge Math for Fall Pricing

Start with the line you have not priced

You are setting fall prices, and your electric bill has a line that can move without your permission: delivery. Texas TDU delivery rates, the local service line on the bill, change on March 1 and September 1. A fall price can be built on a delivery cost that changes before the season ends.

Before you touch price, separate the bill into supply and delivery. Supply is the energy you buy. Delivery is the poles, meters, and local service that carry it to your building. A fixed-rate electricity contract applies only to the supply charge, not to the TDU delivery line. If your bill uses different labels, find the line that pays for the utility's service.

Delivery rates do not move together. From March to the September change, CenterPoint's delivery rate rose 28%, Oncor's rose 7%, and AEP Central in Corpus Christi reduced its rate by more than 4%. CenterPoint said its new TDU rate of 6.41 cents per kilowatt-hour, up from 4.99 cents per kilowatt-hour, would add about $14 to an average family's otherwise identical bill.

The spread across delivery territories is wide enough to matter in a small business margin. TNMP's delivery rate stood at 7.4022 cents per kilowatt-hour on September 1, 2026, producing an $81.87 monthly delivery cost at 1,000 kWh.

Delivery follows the local service, not the energy supplier. It can move even when your supply rate stays the same. Put that line into your cost sheet before you set fall price.

Run the delivery math before you set price

Keep the check in the same order every time, because the number you get belongs in your unit cost, not in a discount.

• Find the delivery rate.
• Multiply it by average monthly kilowatt-hours.
• Add the monthly delivery fee.
• Add the total to unit cost.
• Re-run margin.
• Lock the supply rate before the next reset.

Start on the bill. Look for the supply line and the delivery line. You are done when you have two separate monthly totals, one for energy and one for service. Check the delivery line even when your supply rate is fixed. Convert a dollar rate to cents before you multiply.

Read the delivery section for cents per kilowatt-hour and a flat monthly charge. Finished means two numbers on a notepad: a rate and a fee. Include an extra delivery charge when it is tied to delivery; keep a separate tax or surcharge in its own line.

Take your average monthly usage and multiply it by the delivery rate. The monthly delivery energy cost comes before the flat fee. A steady monthly amount uses the same shape as the example above. Seasonal swings call for the months closest to fall. Multiple meters need separate math, then add the totals.

Add the flat delivery fee to the number from the multiplication. At the end, you have your total monthly delivery cost, the line that belongs in your cost sheet.

Put the number into your fall price

Divide the total monthly delivery cost by your monthly units sold, then add that amount to your unit cost. The new unit cost includes the delivery service, not just the energy. Divide by what you sell: monthly hours, monthly tickets, or monthly units.

Subtract the new unit cost from your fall selling price. You are done when you have a margin you can defend, not a guess. If the margin is thin, do not hide the delivery cost in a discount. Raise the price, reduce usage, or shorten the pricing window.

Choose a supply rate that covers your expected energy use for the fall window. Finished means a signed supply contract with a start date that matches your pricing window. Keep the delivery math separate from the supply decision. Re-check the delivery rate after each rate change. Update your unit cost if it changes.