TDU vs REP: who actually charges you for power?
Texas has a deregulated electricity market. That means two different companies show up on your bill. Here's who does what and why it matters.
The two companies behind your bill
In Texas, since the 2002 deregulation, two separate companies participate in lighting up your home:
The TDU (Transmission and Distribution Utility)
It owns the poles, wires and transformers that move electricity from the power plant to your meter. You didn't pick it — the TDU is geography-based. There are 4 major TDUs in Texas:
| TDU | Coverage |
|---|---|
| CenterPoint Energy | Houston and east coast |
| Oncor | Dallas-Fort Worth and north Texas |
| AEP Texas | South and west Texas |
| TNMP | Scattered areas (Galveston, parts of the Rio Grande Valley) |
The TDU doesn't bill you directly. It bills the REP, and the REP bills you.
The REP (Retail Electric Provider)
Here's where you come in: the REP is the one you choose. It competes against other REPs for your account. It sets your per-kWh rate, base charge, and plan. Velcor is a REP, PUCT-certified #VEL-2026.
Why does this matter?
Because when something goes wrong, you need to know who to call:
- Power's out from a storm? → Call your TDU (CenterPoint, Oncor, etc.). They fix poles.
- Question about your bill or plan? → Call your REP. At Velcor: (800) 715-6516.
- Want to switch providers? → You only change the REP. The TDU stays the same.
What PUCT mandates for every REP
No matter which REP you pick, the Public Utility Commission of Texas (PUCT) requires them to:
- Give you an EFL before signup (average price per kWh).
- Give you a YRAC (Your Rights as a Customer) per § 25.475.
- Include the TDU charges inside your single bill.
- Not disconnect service without at least a 10-day notice.
- Offer you a deferred payment plan if you ask for help before disconnection.
Bottom line
- TDU = the wires (you don't pick it, never calls your house).
- REP = who bills and supports you (you do pick it; at Velcor we treat you in Spanish or English).