Oncor Electric Delivery: TDU Charges, Service Territory & Commercial Electricity Guide
Direct Answer
Oncor Electric Delivery is the largest TDU in Texas, delivering electricity to approximately 10 million customers across 400+ cities in North Texas — including Dallas, Fort Worth, Plano, Arlington, and Waco. Oncor does not sell electricity; it maintains the power grid. Businesses in the Oncor service territory can choose from 60+ licensed REPs to supply their electricity at competitive rates.
Oncor Electric Delivery: Quick Facts
| Full Name | Oncor Electric Delivery Company LLC |
| Type | Transmission and Distribution Utility (TDU) |
| Customers Served | ~10 million (largest TDU in Texas) |
| Service Territory | North and West Texas — Dallas, Fort Worth, Waco, Abilene, and 400+ cities |
| Market | ERCOT deregulated market |
| Regulator | Public Utility Commission of Texas (PUCT) |
| Outage Reporting | 1-888-313-4747 |
| ESID Prefix | 10443720 |
| Sells Electricity? | No — Oncor only delivers electricity. REPs sell supply. |
What Is Oncor Electric Delivery?
Oncor Electric Delivery is a regulated Transmission and Distribution Utility (TDU) — not an electricity retailer. Under Texas's deregulated electricity market, the functions of generating, transmitting, distributing, and selling electricity are separated. Oncor's role is to own and maintain the physical infrastructure: power lines, transformers, substations, and smart meters. It delivers electricity from the ERCOT grid to your business's meter, regardless of which Retail Electric Provider (REP) you have chosen.
Because Oncor is a regulated monopoly in its service territory, you cannot choose a different TDU — your delivery provider is determined by your location. What you can choose is your REP, which determines the supply rate you pay for the electricity itself. This is where Power My Business helps: we compare supply offers from 60+ licensed REPs operating in the Oncor service territory to find the most competitive rate for your business.
Key distinction: Oncor charges are fixed by PUCT regulation and are identical regardless of your REP. Only your supply charges (the REP portion of your bill) are negotiable.
How Oncor TDU Charges Appear on Your Bill
Commercial customers in the Oncor service territory typically see the following charge components on their monthly electricity bill. These charges are set by PUCT and are passed through by your REP — they are not marked up or discounted by your REP.
| 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 |
Note: Exact Oncor TDU rates vary by rate class (secondary, primary, transmission voltage). Contact Power My Business for a current breakdown specific to your business's rate class.
Oncor Service Territory: Major Cities
Oncor serves approximately 400 cities and communities across North and West Texas. The following major cities are in the Oncor service territory and are eligible for competitive REP rate comparison.
Not sure if your business is in the Oncor service territory? Check your electricity bill for "Oncor Electric Delivery" under delivery charges, or look for an ESID beginning with "10443720." Power My Business can verify your service territory at no cost.
How Oncor-Area Businesses Can Reduce Their Electricity Costs
Since Oncor TDU charges are fixed, the primary lever for reducing your electricity costs is negotiating a better supply rate with a REP. Here are the four most effective strategies for businesses in the Oncor service territory.
Compare REP Supply Rates
The supply portion of your bill (the REP charges) is fully negotiable. Power My Business compares offers from 60+ licensed REPs to find the most competitive rate for your usage profile and contract term preference.
Optimize Your Demand Profile
Oncor's 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. Learn more on our demand charges page.
Manage Your 4CP Exposure
The transmission demand charge on your Oncor bill is based on your demand during ERCOT's four coincident peak (4CP) hours each summer. Reducing load during these specific hours can lower your transmission charges for the following year.
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 Oncor Electric Delivery
What is Oncor Electric Delivery?+
Oncor Electric Delivery is the largest Transmission and Distribution Utility (TDU) in Texas, serving approximately 10 million customers across 400+ cities in North Texas, including Dallas, Fort Worth, Plano, Arlington, and Waco. Oncor 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 Oncor service territory?+
Yes. If your business is in the Oncor service territory, you are in the ERCOT deregulated market and can choose from 60+ licensed REPs. Oncor delivers the electricity regardless of which REP you choose — your choice of REP only affects your supply rate, not your delivery service.
What are Oncor's TDU delivery charges for commercial customers?+
Oncor's 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 Oncor handle outages and power restoration?+
Yes. Oncor is responsible for all power line maintenance, outage response, and power restoration in its service territory. If you experience an outage, contact Oncor directly at 1-888-313-4747, not your REP.
How do I know if my business is in the Oncor service territory?+
Your electricity bill lists your TDU. If it says 'Oncor Electric Delivery' under delivery charges, you are in the Oncor territory. Businesses in Dallas, Fort Worth, Plano, Arlington, Waco, and most of North Texas are typically served by Oncor.
What is the difference between Oncor charges and REP charges on my bill?+
Your commercial electricity bill has two main components: Oncor TDU charges (delivery) and REP charges (supply). Oncor charges cover maintaining the power grid. REP charges cover the electricity itself. You can reduce REP charges by comparing rates — but Oncor TDU charges are fixed and non-negotiable.
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 Oncor transmission charge
Dallas Commercial Electricity
Rate comparison for Dallas businesses in the Oncor territory
Fort Worth Commercial Electricity
Rate comparison for Fort Worth businesses
Contract Renewal Guide
How to avoid rollover pricing when your contract expires
Compare REP Rates in the Oncor Service Territory
Power My Business is a PUCT-licensed broker (#BR240245). We compare 60+ REPs for North 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.