Understanding TDSP/TDU Charges

Electric delivery charges are known by many different names:  Demand Charges, transmission charges, TDSP (Transportation Distribution Service Provider) charges, and pole and wires charges.  TDSP charges are fees associated with servicing and delivering power to your meter from the generation source.  The TDSP, sometimes called your Transmission and Distribution Utility (TDU), is the utility company that manages the energy grid in your area of the state.  The TDSP is responsible for maintaining the poles, wires, meters, and other transmission equipment relating to the distribution of energy from the power production plant to the final delivery point.

The City of Seymour does NOT charge TDSP/TDU fees to their customers!

To understand the savings you are receiving, please read further.

The primary charges that fall under TDSP fees are:  Distribution, Transmission, and Transition Charges.  These fees are based on your “peak demand” which is the maximum electricity that you use at any given point in time.  The grid has to work harder to have the capacity available for your peak demand at all times because that is the worse case scenerio.  If the grid does not prepare accordingly, user could be forced to have rolling blackouts.  Although there are fixed costs and other components associated with your TDSP charges, higher demands are generally the primary cause of higher TDSP fee charges.  Some examples of other fees included are Metering Charges, Advanced Metering Fee, and Nuclear Decommissioning Fee.