What’s the Difference Between a Utility and an Electricity Provider?

When it’s time to choose an electricity plan, it can be really confusing picking your way between all the options available and the host of initials and terms.


What is an Electricity Provider?



Switching to one of these authorized electricity providers is easy.  See our post on How to switch electricity providers.

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What is an Electric Utility?

TDSPs (Transmission & Distribution Service Providers) or EDUs (Electric Distribution Utilities) are common names used for local electric utility companies. You may also see the term TDU (Transmission and Distribution Utility) used occasionally. The terms are interchangeable.


TDSPs and EDUs technically do not generate electricity in a state that is deregulated. However, their parent company may own and operate facilities that generate electricity, and they may purchase electricity from these plants or other wholesale electricity sources in order to serve customers that haven’t switched to another electricity provider.


What’s the Difference Between Electricity Providers and Electric Utilities?

To the general public, it’s not usually that big of a deal where the electricity comes from or how it gets to their location, just as long as it does. However, these two entities play very different roles behind the scenes. For deregulation to function properly, they need clearly defined job descriptions.







Who do I Pay for my Electricity?



