If you are a resident of a deregulated electric market in Texas, specifically in Houston, brace yourself for a possible surge in your upcoming electric bill. Even if you consume the same amount of electricity as last month, a noticeable charge increase is expected.
Have you noticed an increase in your electricity bill lately? Well, it could be because the companies responsible for the lines and wires have raised their transmission and distribution fees, also known as TDSP fees. This pass-through charge is reflected on your electric bill, as the TDUs charge the retail electric providers, who then pass the fees on to you. This change took effect on September 1, and it is essential to remember that it may affect your overall electricity costs.
CenterPoint Energy is a company that holds the electric infrastructure in the greater Houston area. In Galveston County, Texas, New Mexico Power owns the lines, wires, and meters. It is a common practice that every year on March 1, TDSP fees experience a decrease in anticipation of the summer season when electric usage typically increases. Conversely, on September 1, TDSP fees increase as electric use decreases in winter.
Comparing the New Electric Rates to the Old Ones
CenterPoint has recently announced a new rate of 5.46/ kWh, marking an increase of 1.7 cents/ kWh from the rate customers have been paying since March 1, 2023. If you are a customer using 3000 kWh per month, you can expect to pay an additional $51 after September 1.
TNMP customers in Texas and New Mexico Power’s service area will experience a surge in TDSP charges, which will go up by 1.5 cents per kilowatt-hour. This means those using 3000 kWh of electricity will have to pay an additional $45.
Why TDSP Rates Undergo Changes?
Regulated utility companies have the privilege of collecting all their costs from their ratepayers and are also assured ofcan contains is due to their crucial role in delivering electricity, maintaining infrastructure, and promptly responding to emergencies, considered a critical public service.
The rates of every utility company in Texas are evaluated and approved by the Public Utility Commission of Texas. You can visit their website by clicking on this link.
David Kinchen, the Chief Operating Officer of Energy Ogre, stated to KPRC 2 that TDUs such as CenterPoint and TNMP must explain to regulators their need for additional funds. Recently, Energy Ogre has been providing information to Texans on how to handle the recent increase in delivery charges.
According to Kinchen, energy companies cannot simply add charges to their bills whenever they want. Each cost needs to be justified. He explains that the companies have been introducing charges to cover the cost of improving the grid to make it more winter-proof and robust. These charges, in his opinion, are justifiable.
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