AEP Texas: TDU Charges, Service Territory & South Texas Commercial Electricity Guide
Direct Answer
AEP Texas is the Transmission and Distribution Utility (TDU) serving South and West Texas, including Corpus Christi, Laredo, McAllen, Victoria, and San Angelo. AEP Texas maintains the power grid but does not sell electricity. Businesses in the AEP Texas service territory can choose from 60+ licensed REPs to supply their electricity at competitive rates.
AEP Texas: Quick Facts
| Full Name | AEP Texas Inc. (formerly West Texas Utilities and Central Power and Light) |
| Type | Transmission and Distribution Utility (TDU) |
| Customers Served | ~1.1 million metered customers across South and West Texas |
| Service Territory | South Texas (Corpus Christi, Laredo, McAllen, Victoria) and West Texas (San Angelo, Abilene area) |
| Market | ERCOT deregulated market |
| Regulator | Public Utility Commission of Texas (PUCT) |
| Outage Reporting | 1-866-223-8508 |
| Sells Electricity? | No — AEP Texas only delivers electricity. REPs sell supply. |
How AEP Texas TDU Charges Appear on Your Bill
| Charge Component | Unit | Description |
|---|---|---|
| Customer Charge | $/month | Fixed monthly charge per meter, regardless of usage |
| Distribution Demand Charge | $/kW | Based on your peak demand (kW) during the billing period |
| Transmission Demand Charge | $/kW | Based on your peak demand during ERCOT system peak hours (4CP) |
| Distribution Energy Charge | $/kWh | Per kWh charge for energy delivered through distribution lines |
| Transmission Energy Charge | $/kWh | Per kWh charge for energy transmitted at high voltage |
| Metering Charge | $/month | Smart meter data collection and communication |
AEP Texas Service Territory: Major Cities
Not sure if your business is in the AEP Texas service territory? Check your electricity bill for "AEP Texas" under delivery charges. Power My Business can verify your service territory at no cost.
How AEP Texas-Area Businesses Can Reduce Their Electricity Costs
Compare REP Supply Rates
The supply portion of your bill is fully negotiable. Power My Business compares offers from 60+ licensed REPs to find the most competitive rate for your South Texas business.
Optimize Your Demand Profile
AEP Texas demand charges are based on your peak kW demand during the billing period. Shifting high-load equipment to off-peak hours can reduce your demand charge significantly.
Manage Your 4CP Exposure
The transmission demand charge on your AEP Texas bill is based on your demand during ERCOT's four coincident peak (4CP) hours each summer. Reducing load during these hours lowers your transmission charges.
Avoid Auto-Renewal Pricing
When a commercial electricity contract expires without renewal, most REPs automatically roll the account to a month-to-month rate that is typically 30–50% higher than a negotiated fixed rate. Start your renewal process 90–120 days before expiration.
Frequently Asked Questions About AEP Texas
What is AEP Texas?+
AEP Texas is a Transmission and Distribution Utility (TDU) serving South and West Texas, including Corpus Christi, Laredo, McAllen, Victoria, and San Angelo. AEP Texas owns and maintains the power lines, meters, and substations but does not sell electricity — that is done by licensed Retail Electric Providers (REPs).
Can I choose my electricity provider if I'm in the AEP Texas service territory?+
Yes. If your business is in the AEP Texas service territory, you are in the ERCOT deregulated market and can choose from 60+ licensed REPs. AEP Texas delivers the electricity regardless of which REP you choose.
What are AEP Texas's TDU delivery charges for commercial customers?+
AEP Texas commercial TDU charges include a monthly customer charge, a distribution demand charge per kW, a transmission demand charge per kW, and an energy delivery charge per kWh. These charges are set by PUCT and are the same regardless of which REP you choose.
Does AEP Texas handle outages and power restoration?+
Yes. AEP Texas is responsible for all power line maintenance, outage response, and power restoration in its service territory. If you experience an outage, contact AEP Texas directly at 1-866-223-8508, not your REP.
How do I know if my business is in the AEP Texas service territory?+
Your electricity bill lists your TDU. If it says 'AEP Texas' under delivery charges, you are in the AEP Texas territory. Businesses in Corpus Christi, Laredo, McAllen, and South/West Texas are typically served by AEP Texas.
What is the difference between AEP Texas charges and REP charges on my bill?+
Your commercial electricity bill has two main components: AEP Texas TDU charges (delivery) and REP charges (supply). AEP Texas charges cover maintaining the power grid. REP charges cover the electricity itself. You can reduce REP charges by comparing rates — but AEP Texas TDU charges are fixed.
Related Resources
TDU Charges by Provider
Compare Oncor, CenterPoint, AEP, and TNMP delivery charges
Demand Charges Explained
How demand charges work and how to reduce them
What Is 4CP?
How ERCOT's coincident peak affects your AEP Texas transmission charge
Corpus Christi Commercial Electricity
Rate comparison for Corpus Christi businesses in the AEP Texas territory
Manufacturing Electricity Texas
Electricity solutions for South Texas manufacturers
Contract Renewal Guide
How to avoid rollover pricing when your contract expires
Compare REP Rates in the AEP Texas Service Territory
Power My Business is a PUCT-licensed broker (#BR240245). We compare 60+ REPs for South Texas businesses at no direct cost.
PUCT Broker Registration #BR240245 | Power My Business is not a REP, utility, or solar installer. Broker compensation paid by the REP selected.