Knowing About TDU Fees
The Transmission & Distribution Utility (TDU) fees include different charges billed by your
local TDSP (Transmission & Distribution Service Provider). Some common elements of TDU
fees consist of:
Advanced Metering Charge: This amount is evaluated to recover a TDU’s charges
related to Advanced Metering Systems, to the level that they aren’t recovered in the
standard metering charge of a TDU.
Metering Charge: This is assessed to recover charges of a TDU for metering its
customer’s consumption, to the level that the TDU charge is a separate entity totally
for that purpose, which is approved by the PUC (Public Utility Commission).
Competition Transition Charge: This is calculated to recover charges of a TDU for
non-securitized costs linked with the transition to competition.
Nuclear Decommissioning Fee: This charge is evaluated to recover a TDU’s
expenses for decommissioning of nuclear generating locations from service,
decreasing residual radioactivity to a point that allows release of the property for
unrestricted utilization and termination of license.
System Benefit Fund: This non-bypassable charge is approved by the PUC to not go
beyond 65 cents per megawatt-hour, which in turn funds the one-time bill payment
support, low-income discount, commission administrative expenses, customer
education, and low-income energy efficiency plans.
Distribution System Charge: This amount based on the cost of delivery of
electricity to a consumer over wires and poles as well as other TDU facilities, but the
amount doesn’t include discretionary charges.
Transmission System Charge: This refers to one or more than one TDU
surcharge(s) on a consumer’s bill in any group. This consists of charges billed by the
TDU as tariff riders.
Transition Charge: Once a consumer decides to move over to the competition, this
charge is evaluated to recover a TDU’s costs for securitized expenses linked to the
As the charges mentioned above are recurring fees, typically every electricity bill will
feature them. However, while some of these are flat fees that won’t fluctuate, others may
differ in each bill depending on how many kilowatt-hours you utilize in a particular billing
cycle. For example, while every bill should show a fixed Advanced Metering Charge,
Metering Charge will vary from one bill to another, depending on the kWh you consume in
a specific billing cycle.
Your TDU fees may also feature some non-recurring fees that are assessed occasionally,
such as the Move-In Fees, Disconnect / Reconnect Fees, Forward Switch Fees, Meter
Tampering Fees, Meter Re-Read Fees etc.
Irrespective of whether they are non-recurring or recurring fees, TDU fees will be
evaluated by the TDSP for your region.
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