Same plan. Different city. $100/year more.
Two people sign up for the exact same light plan at the exact same rate. One lives in Houston, one in Dallas. The Houston resident will pay about $100 more per year for a 2,000 kWh/month household. The difference is not the plan. It's the delivery system.
Why Houston Pays More
When you compare light plans, you see the energy rate — 10 cents per kWh, 12 cents, whatever. That's what your light company charges. But there's a second charge on every Texas light bill that most people do not understand: the TDSP delivery fee.
TDSP stands for Transmission and Distribution Service Provider. These are the companies that own the poles, wires, and meters. They physically deliver power to your home. In Houston, that's CenterPoint Energy. In Dallas, it's Oncor.
As of February 2026, CenterPoint charges 6.0009¢ per kWh for delivery. Oncor charges 5.5833¢ per kWh. That 0.4176¢ gap does not sound like much, but it adds up fast.
For every 1,000 kWh you use, Houston pays $4.18 more. Over a year at typical usage, that's $50-100 extra just for living in the wrong service area. And it's about to get worse.
What TDSPs Actually Do
Texas has a deregulated electricity market. That means you can choose your retail light company, but the infrastructure underneath is a regulated monopoly. You cannot choose your TDSP. Your address determines it.
TDSPs are responsible for maintaining the physical grid: power lines, substations, transformers, and meters. When a storm knocks out power, the TDSP crew fixes it. When you move into a new house, the TDSP connects the meter.
The Public Utility Commission of Texas (PUCT) sets TDSP rates through rate cases. These happen every few years. TDSPs propose a rate, cities and consumer groups push back, and PUCT approves a final number. That number applies to everyone in the service area equally.
Key Point
Your retail light company does not control TDSP charges. Whether you pick TXU, Reliant, or a small prepaid light company, the TDSP fee is identical. Shopping for a better plan can lower your energy rate, but it cannot change your delivery cost.
Breaking Down the Charges
TDSP charges are not just a flat per-kWh rate. They include multiple line items. Here's what CenterPoint and Oncor charged as of February 2026:
| Charge Type | CenterPoint (Houston) | Oncor (Dallas) |
|---|---|---|
| Energy Delivery Charge | 3.8642¢/kWh | 3.7911¢/kWh |
| Metering Charge | $3.77/month | $3.42/month |
| Total Per-kWh Rate | 6.0009¢/kWh | 5.5833¢/kWh |
These rates include distribution charges, transmission access, and various regulatory pass-through fees. The specifics do not matter much to your wallet. What matters is the total.
CenterPoint's higher rate reflects two things: Houston's hurricane risk and the Resiliency Plan. Dallas does not face the same storm threat, so Oncor's infrastructure costs are different.
Real Bill Impact: 4 Cities Compared
Let's look at what you actually pay. Assume everyone is on the same light plan: 10¢/kWh energy rate, $9.95/month base fee. The only difference is location.
Small Apartment (500 kWh/month)
Dallas (Oncor)
Houston (CenterPoint)
Difference: Houston pays $2.43/month more = $29.16/year
Typical Home (1,000 kWh/month)
Dallas (Oncor)
Houston (CenterPoint)
Difference: Houston pays $4.53/month more = $54.36/year
Large Home (2,000 kWh/month)
Dallas (Oncor)
Houston (CenterPoint)
Difference: Houston pays $8.71/month more = $104.52/year
Pattern Recognition
The gap scales with usage. Small apartments see $30/year difference. Large homes see $100+/year. High-usage customers in Houston feel the pinch hardest because CenterPoint's line charges scale with consumption.
Why CenterPoint Costs More: The Resiliency Plan
Houston's grid has been hammered by hurricanes. Ike in 2008. Harvey in 2017. Beryl in 2024. Each one knocked out power for hundreds of thousands of people. CenterPoint's solution is a $2.9 billion infrastructure overhaul called the Systemwide Resiliency Plan.
The plan includes replacing thousands of wooden utility poles with steel ones, aggressive tree trimming near power lines, and grid automation to restore power faster after outages. The PUCT approved it in late 2025 after cutting the original $5.75 billion proposal down to size.
Who pays for it? You do. The PUCT approved rate increases that add approximately $1.40/month per year from 2026 through 2028, with a final $0.60/month increase in 2030. That is on top of the base TDSP rates.
Translation
If you are an average Houston resident using 1,000 kWh/month, you will pay about $1.40 more per month in 2026, $2.80 more in 2027, $4.20 more in 2028, and $4.80 more starting in 2030. That is $57.60/year by 2030 just for the Resiliency Plan — separate from base TDSP charges.
The goal is fewer outages and faster restoration. Whether that justifies the cost depends on how often you lose power and how much that disrupts your life. CenterPoint says the upgrades will significantly reduce storm-related outages. We will see.
Oncor Is Not Standing Still
Dallas-Fort Worth is not immune to rate increases. Oncor reached a settlement with PUCT and North Texas cities in January 2026 that raised delivery charges by about 3%. For a typical 1,000 kWh customer, that is roughly $4.64/month more.
Oncor is investing approximately $3 billion in distribution system upgrades through 2028. The difference is North Texas faces growth challenges (population booming, new suburbs), not storm resilience. Oncor is building new infrastructure to keep up with demand.
Both TDSPs are raising rates. CenterPoint is just higher because Houston's infrastructure challenges are more expensive to fix.
Can't change your TDSP. Can change your REP.
You're stuck with your TDSP (Oncor or CenterPoint), but you can choose your light company. And your light company's rate matters more than the TDU difference. If you need lights without a deposit, we can help. We check multiple light companies to see if you qualify for $0 deposit on a traditional plan (8-13¢/kWh energy charge, plus TDU fees). Many people find at least one option. Can't promise it'll work, but worth checking. If no traditional option works, prepaid lights are always available — $40-75 to start, guaranteed approval, same-day service.
What You Can Do About It
You cannot change your TDSP. You cannot opt out of the Resiliency Plan. TDSP charges are regulated and mandatory. But you can minimize the impact.
Shop for the Lowest Energy Rate
TDSP fees are fixed. Your energy rate is not. A plan charging 9¢/kWh instead of 12¢/kWh saves you $30/month on 1,000 kWh usage. That dwarfs the TDSP difference between cities. Focus your shopping effort here.
Lock Rates Before TDSP Increases Hit
TDSP rate changes happen a few times per year. When a new rate case is approved, retail light companies adjust their plans. If you sign a fixed-rate contract before the increase, you lock in the old TDSP rate for the contract term. Check PUCT filings for upcoming changes.
Use Less Power
TDSP charges are per-kWh. Cut your usage by 20% and you cut both energy and delivery costs by 20%. LED bulbs, programmable thermostats, sealing air leaks — all the usual efficiency moves pay off twice.
Consider Time-of-Use Plans (If Available)
Some plans charge lower rates during off-peak hours. If you can shift usage to nights/weekends (run dishwasher at midnight, charge EV overnight), you reduce total kWh cost. TDSP charges still apply, but your overall bill drops.
Reality Check
The TDSP difference between Houston and Dallas is real, but it is not the biggest factor in your light bill. Your energy rate and usage matter more. A Houston resident on a great plan still pays less than a Dallas resident on a terrible one.
Frequently Asked Questions
Why does Houston pay more for lights than Dallas on the same plan?
Can I choose my TDSP company?
What is CenterPoint Resiliency Plan and why does it cost me more?
How much more will Houston residents pay annually compared to Dallas?
Are Oncor rates going up too?
Can I avoid TDSP charges?
This guide is for informational purposes only and does not constitute legal or financial advice. TDSP rates are regulated by the Public Utility Commission of Texas. NoDepositLights.com is powered by Compare Power (PUCT License BR190020).
