
Fixed rate electricity plans in Texas have to charge the same price in every billing period of the term, with exactly three exceptions written into the Public Utility Commission of Texas (PUCT) rule that defines them, 16 TAC 25.475(b)(5): actual changes in TDU delivery charges, changes to ERCOT or Texas Regional Entity administrative fees, and new costs imposed by law. A possible fourth, grid reserve costs, is now under review in PUCT Project 59997.
That fourth path isn't new, and it has never been used. The same rule already lets the PUCT designate a specific ancillary service as a cost beyond a provider's control for existing contracts. The one petition the commission has decided under that sentence, for a reserve product called ECRS, was denied in December 2024. On November 5, 2026, PUCT Staff asked whether the path should be repealed, rebuilt with clear rules, or used for ERCOT's newest reserve product, DRRS. Comments are due December 4, 2026. Nothing has been decided.
A fixed rate locks in the total price for each billing period of the contract term, not just the energy charge. The PUCT's definition of a fixed rate product in 16 TAC 25.475(b)(5) covers "all recurring charges and ancillary service charges," and the term must be at least three months.
Two other parts of the same rule shape what "fixed" means on a Texas electricity bill:
A fixed rate is not a fixed bill. The price holds, but the bill still rises and falls with the kilowatt-hours you use. If you're still choosing between plan types, Fixed-Rate vs Variable-Rate Electricity in Texas covers that decision. This article is about what can still move after you sign.
The rule lets a fixed price vary from the disclosed amount for three reasons only, and anything outside them stays locked for the term. In the words of 25.475(b)(5), the price may vary "solely to reflect actual changes in TDU charges, changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity, Inc. administrative fees charged to loads or changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP's control."

TDU delivery charges are the fees your local wires utility, such as Oncor, CenterPoint, AEP Texas or TNMP, bills through your provider to move power to your meter. They are the exception most Texans actually see, because every provider in a territory bills the same delivery charges and a fixed plan can pass a change straight through.
The most recent large example is Oncor. Its residential delivery charge rose from 6.0295 to 6.8673 cents per kWh on October 4, 2026, about $8.38 more at 1,000 kWh a month (as of October 4, 2026), under PUCT Docket 59249. Oncor's fixed monthly charges stayed at $4.06. Those rates are temporary until the PUCT issues a final order, as the Oncor delivery charge breakdown explains. For every territory's line items, see TDU Delivery Charges Explained, and for TNMP's September steps and December surcharge, see the TNMP rate guide.
ERCOT, the grid operator for most of Texas, funds itself through a system administration fee charged per megawatt-hour of load, and a change in that fee is the second allowed reason. Texas Regional Entity, which monitors reliability standards in the ERCOT region, is named in the same clause.
This exception is usually tiny. The PUCT approved changing ERCOT's System Administration Fee from $0.63 to $0.61 per MWh, effective January 1, 2026, according to ERCOT's 45-day market notice. One MWh is 1,000 kWh, so on a 1,000 kWh month that change is $0.02.
The third reason covers changes from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP's control. It needs a law, not a market move, which makes it the narrowest of the three in day-to-day practice.
One word-level detail is worth knowing. The indexed product definition right below it, 25.475(b)(6), adds "or regulatory actions" to the same exception. The fixed rate definition leaves those words out and handles grid reserve costs in a separate sentence of its own, which is where Project 59997 comes in.
This table puts every possible cause side by side, with the latest real case for each and its size on a 1,000 kWh month.
| Possible cause of a change | Allowed under 25.475(b)(5) today? | Latest real case | Size at 1,000 kWh a month |
|---|---|---|---|
| TDU delivery charges | Yes, actual changes only | Oncor, October 4, 2026 (Docket 59249) | About $8.38 more |
| ERCOT administrative fee | Yes | $0.63 to $0.61 per MWh, January 1, 2026 | $0.02 less |
| New fees or costs imposed by law | Yes, if beyond the provider's control | Needs a new or modified law | Set by the law |
| Ancillary service (grid reserve) costs | No, unless the PUCT expressly designates a specific product | ECRS petition denied December 19, 2024. DRRS under review in Project 59997 | $0 today. No DRRS cost per kWh has been published |
| Wholesale price swings, heat waves, scarcity pricing | No | Not listed in the rule | $0 |
No. Ancillary service costs are already part of a Texas fixed price, and the rule says the price "may not vary from the disclosed amount to reflect changes in ancillary service charges unless the commission expressly designates a specific type of ancillary service product as incurring charges beyond the REP's control for a customer's existing contract." No ancillary service product has ever received that designation.
Ancillary services are the reserves ERCOT buys so the grid can cover a sudden loss of a power plant or a fast swing in demand. Retail providers pay their share of those costs. Because a fixed price includes ancillary service charges by definition, the cost risk of reserves sits with the provider for the length of a fixed term.
The designation sentence is the one opening the rule leaves. It is written narrowly: a specific type of ancillary service product, an express commission designation, and existing contracts only.
No. The only petition the PUCT has decided under the designation sentence was denied. In Docket 55959, the Texas Energy Association for Marketers and the Alliance for Retail Markets filed a joint petition on December 8, 2023, asking the commission to designate ERCOT Contingency Reserve Service (ECRS) so providers could make a one-time adjustment to certain existing fixed-rate contracts. The PUCT issued its declaratory order on December 19, 2024, and the answer was no.
The request covered fixed-rate contracts signed on or before June 9, 2023. According to EnergyChoiceMatters' report of the decision, the PUCT found providers had adequate notice that ECRS was coming. The final order said ERCOT's ECRS procurement in 2023 totaled 2,531 MW, "which was within the estimated range of 1,093 MW and 3,039 MW that ERCOT provided to the Wholesale Market Working Group in 2022."
Commissioners Lori Cobos and Kathleen Jackson voted to deny the petition. Chairman Thomas Gleeson and Commissioner Courtney Hjaltman were recused. The final order did not adopt an administrative law judge's broader proposed conclusion that "there is no question that REPs have a significantly greater ability to [accurately predict A/S costs] than their residential and small commercial customers," so the larger question of who should carry new reserve costs was left open.
The Retail Electric Provider Coalition filed a motion for rehearing on January 13, 2025. On January 22, 2025, the commission voted not to add it to an open meeting agenda.

DRRS, short for Dispatchable Reliability Reserve Service, is a new ancillary service ERCOT is building under Nodal Protocol Revision Request 1309. ERCOT's NPRR1309 page says the change "develops Dispatchable Reliability Reserve Service (DRRS) as a new Ancillary Service," and records PUCT approval on July 9, 2026, "as presented in Project No. 54445."
Before that vote, the Retail Electric Provider Coalition asked for order language designating DRRS as a service "that will incur costs beyond the REPs' control at the time that service is incorporated into the ERCOT Ancillary Services plan," EnergyChoiceMatters reported. The July order left that language out, and the PUCT said it would open a project instead.
At the July open meeting, PUCT Chair Thomas Gleeson said he didn't know when the commission would move forward, adding, "I don't think there are lot of details around how that would be done, safeguards for customers, and the like," according to the same EnergyChoiceMatters report. He recommended a project "to see what changes need to be made, what details or guardrails need to be put around this," and tied the issue to the commission's concern with "affordability."
That project is Project 59997. Staff filed the control request on July 15, 2026, and on October 28, 2026 the project was restyled "Treatment of DRRS and Other Future Ancillary Services Costs in Existing Fixed-Rate Retail Contracts."
DRRS isn't running yet. ERCOT estimates DRRS will be fully implemented in mid-2028, according to an October 29, 2026 PUCT staff memo, which says ERCOT's project management office gave that estimate at an October 2026 Protocol Revision Subcommittee meeting. The same memo says DRRS "must also be considered in ERCOT's 2028 AS Methodology development so that quantities may be determined." ERCOT's own comments for its June 2026 board vote also said "Implementation in 2028." No DRRS cost per kWh has been published.
On November 5, 2026, PUCT Rules & Projects Staff filed questions for comment in Project 59997, and one option on the table is removing the ancillary-service path from the fixed rate rule altogether. Comments are due December 4, 2026, and reply comments are due December 18, 2026. Staff hasn't proposed a rule change, and nothing has been decided.
The Staff memo, from Luisa Venegoni of Rules & Projects, asks stakeholders to address these open questions, as summarized in the memo and in EnergyChoiceMatters' November 5 report:
Staff's questions run in both directions. Some would close the path for good. Others would write the rules for using it.
The Office of Public Utility Counsel (OPUC), the state agency that represents residential and small commercial consumers, filed a notice of participation on November 9, 2026. As of November 13, 2026, the project lists four filings, and OPUC's notice is the most recent.
Only the longer terms do, based on ERCOT's current estimate. A 12-month fixed plan signed in November 2026 ends in November 2027, before mid-2028. A 24-month plan ends in November 2028 and a 36-month plan in November 2029, so both run past the estimated DRRS start.
| Fixed term signed in November 2026 | Contract ends | Overlaps ERCOT's mid-2028 DRRS estimate? |
|---|---|---|
| 12 months | November 2027 | No |
| 24 months | November 2028 | Yes |
| 36 months | November 2029 | Yes |
Overlap by itself changes nothing on your bill. A DRRS cost could reach an existing fixed price only if the PUCT designated DRRS under 25.475(b)(5) or changed the rule, and then allowed a variation for existing contracts. One of the options Staff put on the table would remove that path entirely. The mid-2028 date is also an estimate, and it can move.
The protection on the other three causes is the same for every term length. For when to lock in, the forward price curve guide covers timing, and the renewal guide covers the notice and switching windows at the end of a term.
Your Electricity Facts Label (EFL) and Terms of Service spell out exactly when your price can move. Start with the EFL Disclosure Chart's answer to "Can my price change during the contract period?" and the row beneath it, then find the fixed rate section of the Terms of Service.
Ambit Energy's own documents use the rule's three causes. The Ambit Texas Residential Terms of Service (version v. TOU103123, dated October 31, 2023) says: "The price of a fixed rate product may change during a contract term only to reflect changes in TDU charges, changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity administrative fees charged to loads or changes resulting from federal, state or local laws that impose new or modified fees or costs on REPs, including Ambit Energy, that are beyond our control." To see how Ambit's plans and terms compare, see Every Ambit Energy Plan Compared.
Not on an existing fixed-rate contract under today's rule. A DRRS cost could reach a fixed price only if the PUCT expressly designated DRRS or changed the rule, and neither has happened. ERCOT estimates DRRS will be fully implemented in mid-2028, and no DRRS cost per kWh has been published.
No. Wholesale price swings are not one of the three causes in 25.475(b)(5). A heat wave or a winter storm can raise your bill through higher usage, but not your fixed price. What a Texas winter storm can and can't do to your electric bill covers the winter side.
No. A fixed rate holds your price, while your bill still moves with the kilowatt-hours you use. Budget billing smooths the bill amount instead, without changing what you pay over the year, as the Average Monthly Billing guide explains.
It depends on your Terms of Service. Ambit Energy's Texas Residential Terms of Service says: "Price changes resulting from these scenarios do not require us to provide you with advance notice."
Comments go to Project No. 59997 by December 4, 2026, with reply comments by December 18, 2026, according to the Staff memo. Every filing is posted on the PUCT Interchange listing for Project 59997.
Plan details and rates subject to change. TDU charges and ERCOT fees in this article are as of the dates shown.
TNMP TDU delivery charges for homes are $7.56 a month plus 7.7710 cents per kWh as of October 1, 2026, according to the Public Utility Commission of Texas (PUCT). At 1,000 kWh, that's $85.27 a month for delivery alone, the highest of the five delivery utilities on the PUCT's residential table. The rates from TNMP's rate case took effect September 13, and December 2026 bills add a one-month surcharge on top.
The September 13 change was the second step in two weeks. Texas-New Mexico Power's per-kWh charge rose from 6.4665 to 7.4022 cents on September 2, then to 7.7710 cents on September 13, according to BKV Energy's historical TDU rate table. Together the two steps add $12.75 a month at 1,000 kWh. Only $3.40 of that came from the rate case itself.

TNMP TDU delivery charges are the PUCT-approved fees Texas-New Mexico Power Company collects to carry electricity over its poles, wires and meters to homes and businesses in its service area. TNMP is a transmission and distribution utility (TDU), not a retail electric provider. Every provider in TNMP territory passes the same delivery charges through to its customers.
TNMP says it delivers power to more than 280,000 homes and businesses in Texas, from its headquarters in Lewisville. Its service area spans three regions, North-Central Texas, Gulf Coast Texas and West Texas, according to TNMP's service area page. Outages and meter problems go to TNMP at 888-866-7456, not to your electricity provider.
For a home, the TNMP delivery charge has two parts:
TNMP's sister utility in New Mexico, PNM, is regulated by the New Mexico Public Regulation Commission and has no role in Texas delivery charges. The broader guide to TDU delivery charges for Oncor, CenterPoint, AEP and TNMP explains how each line item appears on a Texas bill.

TNMP charges more to deliver power than any other utility on the PUCT's residential table. At 1,000 kWh, TNMP delivery costs $85.27 a month as of October 1, 2026, compared with $59.27 to $70.23 at the other four utilities on that table. TNMP also has the largest fixed monthly charge.
| Utility (PUCT table, as of October 1, 2026) | Monthly charges | Per-kWh charge | 500 kWh | 1,000 kWh | 2,000 kWh |
|---|---|---|---|---|---|
| TNMP | $7.56 | 7.7710 cents | $46.42 | $85.27 | $162.98 |
| CenterPoint | $4.90 | 6.5333 cents | $37.57 | $70.23 | $135.57 |
| Oncor | $4.06 | 6.0295 cents | $34.21 | $64.36 | $124.65 |
| AEP Texas Central | $3.24 | about 5.7 cents | $31.83 | $60.42 | $117.59 |
| AEP Texas North | $3.24 | about 5.6 cents | $31.26 | $59.27 | $115.30 |
Source: PUCT residential TDU delivery charges, as of October 1, 2026, read again on October 22, 2026. The PUCT table rounds the AEP per-kWh charges, so multiplying them won't reproduce the AEP totals exactly.
One update since that table: Oncor's per-kWh charge rose to 6.8673 cents on October 4, 2026, according to BKV Energy's rate history. That puts Oncor at $72.73 at 1,000 kWh. TNMP still costs $12.54 a month more than Oncor and $15.04 a month more than CenterPoint. Over a year at 1,000 kWh a month, that's about $150 more than Oncor and about $180 more than CenterPoint, for delivery alone.
The fixed charge matters most for small homes and apartments. TNMP's $7.56 compares with $4.90 at CenterPoint, $4.06 at Oncor and $3.24 at both AEP Texas utilities. It applies every month, whatever you use.
TNMP delivery charges changed twice because two separate updates landed 11 days apart. On September 2, 2026, the per-kWh charge rose from 6.4665 to 7.4022 cents, before the rate case took effect. On September 13, the rate case rates replaced that stack, taking the per-kWh charge to 7.7710 cents and trimming the fixed charge from $7.85 to $7.56.
The TNMP September Timeline shows which rate applied when:
| In effect (2026) | Monthly charges | Per-kWh charge | 500 kWh | 1,000 kWh | 2,000 kWh | What changed |
|---|---|---|---|---|---|---|
| April 11 to September 1 | $7.85 | 6.4665 cents | $40.18 | $72.52 | $137.18 | Spring level |
| September 2 to September 12 | $7.85 | 7.4022 cents | $44.86 | $81.87 | $155.89 | Per-kWh stack update, before the rate case |
| September 13 onward | $7.56 | 7.7710 cents | $46.42 | $85.27 | $162.98 | Rate case rates, PUCT Docket No. 58964 |
| Change since spring | minus $0.29 | +1.3045 cents | +$6.24 | +$12.75 | +$25.80 |
Dates and rates come from BKV Energy's historical TDU table. The PUCT's September 1, 2026 TNMP rate report lists the same 7.4022-cent rate and the $81.87 total at 1,000 kWh, and the PUCT's October 1 table confirms the September 13 row.
The September 2 step was the bigger of the two: $9.35 a month at 1,000 kWh, a 14.5 percent jump in the per-kWh charge. It came before TNMP's new base rates applied, so it reflects an update to other pieces of TNMP's per-kWh stack rather than the rate case.
That timing explains why TNMP numbers online disagree. Pages written in early September show $81.87 at 1,000 kWh, which was current for only 11 days. Some AI-generated answers fold both steps into a single increase of about $12.75. The rate case accounts for $3.40 of it.
The PUCT approved a settlement of TNMP's rate case, Docket No. 58964, on July 30, 2026. TNMP described the result as a modest increase of about 1% to delivery rates, in its first rate filing in seven years. New rates apply to bills rendered 45 days after the order, which matches the September 13, 2026 effective date on TNMP's current tariff.
TNMP's "about 1%" describes delivery rates across its whole system. For a residential customer at 1,000 kWh, the September 13 step was about 4.2 percent, so the household effect is larger than the headline figure.
| Residential charge (Docket No. 58964) | Before | After |
|---|---|---|
| Customer charge | $1.13 a month | $1.70 a month |
| Metering charge | $6.72 a month | $5.86 a month |
| Distribution system charge | 2.5670 cents per kWh | 4.6020 cents per kWh |
| Rider HCRF (new) | none | 0.0882 cents per kWh |
| Rider RCE (resumed) | none | 0.0180 cents per kWh |
| Rider IS (new, one month) | none | Set in a compliance filing for December 2026 |
Source: EnergyChoiceMatters, July 31, 2026.
The settlement created or resumed three riders that retail providers pass through:

TNMP's announcement quoted the settlement as saying the agreement "is in the public interest... and will conserve the parties' and the public's resources." The deal was signed by consumer groups, cities, large customers and PUCT Staff, according to TNMP.
A 2-cent base rate increase didn't add 2 cents because other charges came down at the same time. TNMP's residential distribution system charge rose 2.035 cents, from 2.5670 to 4.6020 cents per kWh. The total per-kWh delivery charge rose only 0.3688 cents, from 7.4022 to 7.7710 cents, because charges TNMP was already collecting through riders were reset or folded into the new base rate.
The arithmetic is simple. The new base charge plus the two new per-kWh riders added about 2.14 cents. For the total to rise only 0.3688 cents, the rest of the stack had to fall about 1.77 cents.
Stacking the base increase on top of the old total would put TNMP's per-kWh charge near 9.44 cents, or about $101.93 at 1,000 kWh. That overstates the September 13 increase about six times, $20.06 versus the real $3.40. The PUCT's October 1 table lists 7.7710 cents and $85.27. The same trap showed up with CenterPoint's September 30 rider change, as the Houston CenterPoint delivery charge breakdown explains.
The fixed side moved the other way. The customer charge rose 57 cents and the metering charge fell 86 cents, so the fixed monthly charge dropped 29 cents. The whole increase sits in the per-kWh charge, so bigger homes absorb more of it:
Rider IS is a one-month interim surcharge on December 2026 TNMP bills. It collects the difference between TNMP's final rates and the rates it actually billed from May 22 through September 12, 2026. TNMP's final residential rates are higher than the rates billed during that window, so for residential customers Rider IS is expected to be a charge rather than a credit.
TNMP didn't put interim rates into effect while the case was pending. EnergyChoiceMatters reporter Paul Ring summed up the result: "Rider IS essentially grants TNMP the revenues it would have received under interim rates without having implemented interim rates prior to a final order."
The PUCT set the surcharge in Docket No. 59973:
Three details matter for households:
Oncor customers saw a similar interim-rate rider this summer, covered in the Oncor August 1 delivery charge breakdown. December is also when winter usage starts to climb, which the ERCOT December 2026 winter outlook puts in context.
A fixed-rate plan doesn't fully protect you from TNMP delivery charge changes. Texas rule 16 TAC §25.475 lets a fixed-rate product's price change "solely to reflect actual changes in TDU charges," along with certain ERCOT fees and new legal costs. So a TNMP rate change or rider, including Rider IS, can reach a fixed-rate bill.
How it shows up depends on how your plan bills delivery:
The walkthrough on how to read a Texas Electricity Facts Label covers the six numbers to check before you sign.
The rate case settlement also reset TNMP's discretionary service charges. Moving into a home with an existing standard meter got cheaper, while a new standard meter and service at premium locations got more expensive.
| TNMP discretionary charge (standard meter) | Before | After |
|---|---|---|
| Move-in, existing standard meter | $1.50 | $1.00 |
| Move-in, new standard meter | $36.00 | $54.00 |
| Disconnection at premium location | $104.00 | $163.00 |
| Reconnection at meter after disconnection for nonpayment | $1.50 | $1.50 |
| Standard reconnect, premium location | $101.00 | $145.00 |
| Same-day reconnect, premium location | $236.00 | $353.00 |
Source: EnergyChoiceMatters, July 31, 2026, summarizing the Docket No. 58964 settlement.
Your provider passes these TNMP fees through when the service is performed. For a typical move into a home with a working standard meter, the TNMP move-in charge is now $1.00.
TNMP customers won't see Blackstone rate credits until the deal closes, and it hasn't closed. The PUCT approved Blackstone Infrastructure's purchase of TNMP's parent company, TXNM Energy, with $45 million in rate credits, TNMP said on February 6, 2026. Those credits begin only after closing, so they won't offset December's Rider IS.
As of TXNM Energy's July 17, 2026 announcement, filed with the SEC, the deal had approval from the PUCT, the Federal Energy Regulatory Commission and the Federal Communications Commission, plus federal antitrust clearance. It still needed the Nuclear Regulatory Commission and the New Mexico Public Regulation Commission. TXNM estimated closing in the first half of 2027 and extended the merger agreement's end date to May 31, 2027.
"We remain committed to our proposed partnership with Blackstone Infrastructure because it is critical to TXNM Energy's long-term ability to provide clean, affordable and reliable power to the customers we serve," said Don Tarry, President and CEO of TXNM Energy, in that announcement.
Texas delivery charges are rising because utilities are spending on grid growth and storm recovery, and riders are how that spending reaches bills between rate cases. TNMP's Hurricane Beryl rider is one example. The Texas Energy Poverty Research Institute (TEPRI) reported that ERCOT residential electricity rates rose about 30 percent since 2021. TEPRI projected a further 29 percent increase from 2025 to 2030, from 15.33 to 19.75 cents per kWh (as of December 9, 2025), driven mainly by planned transmission and distribution investment.
Demand growth sits behind much of that investment. "Texas is continuing to grow beyond data centers significantly," Thomas Gleeson, chair of the Public Utility Commission of Texas, said in July 2026, as reported by the Texas Tribune.
David Kinchen, Chief Operating Officer at Energy Ogre, put the household effect plainly in his Q1 2026 Texas market update: "Delivery fees are rising regardless of your provider."
TNMP's share of a bill shows why. The latest U.S. Energy Information Administration Electric Power Monthly put the average Texas residential price at 15.88 cents per kWh for July 2026. At 1,000 kWh, TNMP delivery works out to about 8.5 cents per kWh by itself, more than half of that statewide all-in average, before any supply charge.
The TNMP Three-Date Bill Check is a quick way to see which TNMP delivery rate your bill used and what's still coming. You need your bill's service dates, its bill date and your kWh.
| Date | What to check | TNMP delivery at 1,000 kWh |
|---|---|---|
| September 2, 2026 | Was your usage billed before or after this date? | $72.52 before, $81.87 from September 2 |
| September 13, 2026 | Bills rendered on or after this date use the rate case rates. | $85.27 |
| December 2026 | Your December bill carries Rider IS for one month. | $85.27 plus the Rider IS charge |

To check the math, multiply your kWh by the per-kWh charge for your row and add the fixed monthly charge. At the current rate, that's your kWh times 7.7710 cents, plus $7.56. If the delivery line doesn't match and your provider can't explain the gap, the guide to disputing an electric bill in Texas walks through the next steps.
TNMP households can't shop away delivery charges, so the levers are the supply rate, usage and timing:
Yes. TNMP delivery charges are PUCT-approved and passed through at the same amount by every retail electric provider in TNMP territory. For the same usage, the TNMP delivery cost is identical no matter which company bills you.
TNMP's rate case rates apply to bills rendered on or after September 13, 2026, 45 days after the PUCT's July 30 order in Docket No. 58964. A separate per-kWh increase took effect earlier, on September 2, 2026.
The residential Rider IS rate is set in TNMP's October 2, 2026 amended filing, which the PUCT found in compliance on October 13 in Docket No. 59973. It applies to December 2026 bills only. Check the delivery or TDU line on your December bill, or ask your provider for the rate it's passing through.
Among the five utilities on the PUCT's residential TDU table, yes. At 1,000 kWh, TNMP delivery costs $85.27 as of October 1, 2026, compared with $72.73 for Oncor after its October 4 increase and $70.23 for CenterPoint.
Rider HCRF is TNMP's Hurricane Cost Recovery Factor. It recovers $20.5 million in Hurricane Beryl restoration costs over five years, at 0.0882 cents per kWh for residential customers, about $0.88 a month at 1,000 kWh.
No. Every provider passes through the same TNMP delivery charges. Switching can lower the supply part of your bill, so compare plans by the EFL average price at your usage rather than the energy charge alone.
TNMP delivery now costs $85.27 a month at 1,000 kWh as of October 1, 2026, the highest on the PUCT's table, after two September increases worth $12.75 combined. The rate case itself added $3.40, and a one-month Rider IS charge lands on December bills. Rate credits from the Blackstone deal wait on a closing that TXNM expects in the first half of 2027.
Delivery rates in this article come from the PUCT residential TDU table as of October 1, 2026, the PUCT's September 1, 2026 TNMP rate report and BKV Energy's historical TDU table, as of the dates shown. Plan details and rates subject to change, and an Electricity Facts Label is available for every plan.
A provider of last resort in Texas, or POLR, is the backup retail electric provider that keeps your lights on if your chosen provider stops serving you. On October 9, 2026, the Public Utility Commission of Texas (PUCT) approved the POLR list for the 2027-28 term, which begins in January 2027. Your power stays on, and you can leave POLR service at any time.
That safety net has existed since Texas opened retail electricity choice in 2002. What changed this month is who stands behind it for the next two years. As of October 10, 2026, POLR service costs about 20 to 21.5 cents per kWh at 1,000 kWh, depending on your utility area, according to the PUCT-posted POLR Electricity Facts Labels.

A provider of last resort is a retail electric provider (REP) that the PUCT designates to serve customers whose provider can't continue, plus any customer who asks for POLR service directly. Texas rule 16 TAC §25.43 sets up POLR service in every competitive utility area: Oncor, CenterPoint, AEP Texas Central, AEP Texas North and TNMP.
The rule covers four customer classes: residential, small non-residential, medium non-residential and large non-residential. It also creates two types of POLR providers:
The PUCT is plain about what POLR service is for. "POLR service is a safety net for customers whose chosen REP is unable to continue service," the commission's Provider of Last Resort page says. "This service is intended to be temporary and used only under rare circumstances when a REP is unable to provide service, or when a customer requests POLR service."
POLR designations apply only where retail choice is in effect. Lubbock Power & Light runs its own POLR process (see the Lubbock LP&L rate change explainer), and city-owned utilities and most electric cooperatives don't offer retail choice at all.
TXU Energy Retail Company is the only volunteer POLR for the 2027-28 term, and up to 15 LSPs per customer class back it up in each utility area. The PUCT approved the list in Commission Staff's September 18 final recommendation without modification, according to EnergyChoiceMatters (October 9, 2026).
The filings in PUCT Project No. 59209 show how the list came together:
TXU volunteered for residential and small non-residential customers in all five areas, and for medium non-residential customers everywhere except AEP Texas North, according to EnergyChoiceMatters. TXU's volunteer request, which includes how many customers it will take, was filed in redacted and confidential versions (items 247 and 249).
In each area, the LSP with the largest market share also files the monthly residential POLR Electricity Facts Label (EFL), under §25.43(j)(3). That label publishes the POLR rate for the area.
| Utility area | Volunteer POLR, 2027-28 (residential) | Company that files the residential POLR price label | Residential LSPs |
|---|---|---|---|
| Oncor | TXU Energy | TXU Energy Retail Company | Up to 15 |
| CenterPoint | TXU Energy | Reliant Energy Retail Services | Up to 15 |
| AEP Texas Central | TXU Energy | Reliant Energy Retail Services | Up to 15 |
| AEP Texas North | TXU Energy | Reliant Energy Retail Services | Up to 15 |
| TNMP | TXU Energy | Reliant Energy Retail Services | Up to 15 |
The label filers shown are the current 2025-26 filers listed on the PUCT's POLR page, and Staff's September 18 recommendation keeps the same companies first on the 2027-28 residential lists. The 2025-26 designations stay in place through December 2026, so nothing changes for customers on the day the new term starts unless a provider fails.
Your electricity keeps flowing. When a REP can't serve its customers or fails its obligations to ERCOT, ERCOT runs a "mass transition" that moves every affected meter to a POLR provider. Your utility still delivers the power and restores outages. Only the company that bills you changes.
Texas has done this at scale. ERCOT transitioned 9,926 Griddy customers to POLR providers between February 26 and March 2, 2021, according to a PUCT filing. "It's going to be very important for customers who are shifted to the Provider of Last Resort to take a look at the plan that they're put on because they very likely might want to go ahead and change again," Tim Morstad, associate state director for AARP Texas, told NBC 5 Dallas-Fort Worth on March 1, 2021.

ERCOT fills volunteer POLR slots first, then spreads the remaining customers across LSPs by market share. Section 25.43(l) sets the order:
You don't choose your POLR provider, and neither does your old provider. For 2027-28, a transitioned household goes first to TXU, the only volunteer, until TXU's limit is reached. Customers beyond that limit are spread across the LSPs.
Which group you land in matters for your price on day one. A VREP must serve you on a market-based, month-to-month product, under §25.43(m)(1). An LSP can bill you at the POLR formula rate covered below. In February 2021, the PUCT reopened volunteer POLR applications for exactly that reason. "I don't want (consumers) to have to deal with getting put on a bad POLR plan," then-Commissioner Arthur D'Andrea said at the time, adding that "this outcome is all about protecting them," as reported by Texas Public Radio.
You'll get three notices. Section 25.43(t) requires one each from ERCOT, your old provider and your new POLR provider:
Residential bills from an LSP at the POLR rate also carry a PUCT message headed "An Important Message from the Public Utility Commission Regarding Your Electric Service."

As of October 10, 2026, POLR service costs about 20 to 21.5 cents per kWh at 1,000 kWh. The PUCT posts one residential POLR EFL per utility area each month, filed by the largest LSP.
| Utility area (label filer) | Label date | 500 kWh | 1,000 kWh | 2,000 kWh | Energy charge |
|---|---|---|---|---|---|
| Oncor (TXU) | Oct. 10, 2026 | 21.9¢ | 21.5¢ | 21.3¢ | 5.19¢ |
| CenterPoint (Reliant) | Oct. 10, 2026 | 21.8¢ | 21.3¢ | 21.0¢ | 5.2¢ |
| AEP Texas Central (Reliant) | Oct. 10, 2026 | 20.6¢ | 20.3¢ | 20.1¢ | 5.2¢ |
| AEP Texas North (Reliant) | Oct. 10, 2026 | 20.5¢ | 20.2¢ | 20.0¢ | 5.2¢ |
| TNMP (Reliant) | July 10, 2026 | 21.2¢ | 20.4¢ | 20.0¢ | 4.1¢ |
All prices are average cents per kWh from the PUCT-posted residential POLR EFLs. An October TNMP label couldn't be confirmed at publication, so check the PUCT POLR page for the current one.
For context, as of October 20, 2026, the latest U.S. Energy Information Administration Electric Power Monthly put the average Texas residential price at 15.88 cents per kWh for July 2026, up from 15.36 cents in July 2025. That average covers every kind of residential customer, so it's a rough yardstick. Even so, the Oncor POLR price at 1,000 kWh sits about 5.6 cents, or roughly 35%, above it. On a 1,000 kWh month, that's about $215 on POLR versus about $159 at the statewide average.
The POLR formula adds a fixed charge on top of last month's wholesale prices. Under §25.43(m)(2)(A), the residential LSP rate equals non-bypassable charges, plus an LSP customer charge of $0.09 per kWh, plus an LSP energy charge, all divided by the kWh you used:
| Piece of the Oct. 10, 2026 Oncor POLR price at 1,000 kWh | Cents per kWh | Share of total |
|---|---|---|
| LSP customer charge | 9.0 | About 42% |
| LSP energy charge (September prices x 120%) | 5.19 | About 24% |
| Delivery, ERCOT fees and other pass-through charges (remainder) | About 7.3 | About 34% |
| Total | 21.5 | 100% |
On a 1,000 kWh month, the customer charge alone comes to $90. The cap matters, too. Starting from the October Oncor energy charge of 5.19 cents, the November charge can't go above about 8.3 cents, whatever wholesale prices do in October. A wholesale spike reaches POLR bills a month late and in limited steps, which is one reason a Texas winter storm's effect on your electric bill depends so much on the plan you're on.
The PUCT gives its own reason for the higher price: "POLR service is relatively high-priced, due to the costs associated with planning and the risk of serving an uncertain number of customers with uncertain electricity loads."
Yes, you can leave POLR service at any time by enrolling in a plan with any provider. "Customers who are switched to a POLR are free to choose another provider or plan at any time," Reliant said in a written statement to Texas Public Radio in February 2021.
Two details help you move faster:
Some AI-generated answers describe a "60-day fee-free window" for leaving POLR service. That reads the rule backward. The 60 days in §25.43 is a deadline for the LSP, not a window for you. It's when the LSP has to stop charging the POLR formula rate, which the next section covers. Leaving early doesn't depend on that date at all.
If you stay put, an LSP must move you off the POLR formula rate and onto its own market-based, month-to-month product by the 61st day of service, or the first billing cycle after day 60. Section 25.43(c)(8) bars a month-to-month product from carrying a termination fee or penalty.
A month-to-month product beats the POLR formula, but its price isn't locked the way a fixed-rate contract's is. Shopping still pays.
Your old provider must return your deposit within seven calendar days of the start of the transition, under §25.43(p)(5). Your new POLR provider can ask for a deposit, but it must serve you in the meantime, and Texas rules limit when it can collect.
If a deposit is a hurdle when you shop for a replacement plan, the guide to no-deposit light companies in Texas covers what you may qualify for.
The 60-Day POLR Exit Plan is a four-step checklist for leaving POLR service on your own terms, built around the deadlines in §25.43. The day-61 and price rows describe an LSP at the POLR formula rate. If you landed with the volunteer POLR instead, you start on its month-to-month market-based product, and the same four steps still get you onto a plan you chose.
| When | What to do | Why it matters |
|---|---|---|
| Day 1 | Read the ERCOT postcard and your POLR provider's notice. Write down your POLR start date, your ESI ID and your utility (TDU). | Your ESI ID and TDU are what a new provider needs to enroll you. |
| Week 1 | Pull your last 12 months of usage from past bills or Smart Meter Texas. Read the POLR EFL for your area. | Plans price differently at 500, 1,000 and 2,000 kWh, and your real usage decides which plan is cheapest. |
| Weeks 1-2 | Compare fixed-rate plans by their EFLs at your actual monthly usage. Check the contract length and the early termination fee. | You'll know your new price before a POLR deposit can come due, which is no earlier than day 15. |
| Before day 60 | Enroll in the plan you chose. Ask for an out-of-cycle meter read if you want the switch to land sooner. If you wait with an LSP, you'll roll to its month-to-month product with no termination fee. | Day 61 is the LSP's deadline, not yours. Every day earlier is a day off a POLR price near 21 cents per kWh as of October 10, 2026. |

For the comparison step, the walkthrough on how to read a Texas Electricity Facts Label shows the six numbers that decide what a plan really costs.
Yes, though few households would want to at current prices. Any residential customer can ask an LSP designated for their area to serve them at the POLR rate, under §25.43(p)(1), and the LSP can't refuse except where Texas rules allow it. At about 20 to 21.5 cents per kWh as of October 10, 2026, POLR works as a guaranteed fallback rather than a bargain.
The PUCT adopted updated retail provider certification rules on October 15, 2026, six days after it approved the POLR list. It adopted amendments to 16 TAC §25.107, the REP certification rule, in Project No. 59288. The order revises the REP letter of credit form, certification form and reporting instructions as part of an e-filing update. The Texas Register acknowledgment lists an effective date of November 4, 2026.
The rule reaches a large field. The PUCT counted 138 certificated REPs in 2024, according to its 2025 Biennial Agency Report.
Those letters of credit connect to households in one specific way. In a mass transition, §25.43(p)(9) directs available letter of credit proceeds first toward deposit help for the failed provider's low-income customers, when that provider kept a current low-income list.
No. Your utility (Oncor, CenterPoint, AEP Texas or TNMP) owns the poles and wires, delivers power and restores outages no matter who bills you. A POLR provider is a retail electric provider that sells you electricity and sends the bill.
No. TXU Energy is the only volunteer POLR for 2027-28, but each area also has up to 15 designated LSPs per customer class. Once volunteer capacity is used, ERCOT assigns customers to those LSPs by market share.
The new term begins in January 2027 and runs two years, under §25.43(g)(2). The 2025-26 designations cover any transition through December 2026.
Yes, for electricity used before the transfer. Under §25.43(p)(3), the exiting provider stays financially responsible for serving you until the transfer to the POLR provider is complete, and its notice may describe how it will collect any unpaid balance.
Not through this list. The 2027-28 designations cover the five competitive utility areas. Lubbock Power & Light runs a separate POLR process, and most electric cooperatives and city-owned utilities don't offer retail choice.
The PUCT's Provider of Last Resort page links the monthly residential EFL for each area, such as the Oncor residential POLR EFL. LSPs supply a new label by the 10th of each month.
POLR service keeps the lights on, and the October 9 approval settles who holds that job from January 2027. It's also a temporary price, about 20 to 21.5 cents per kWh as of October 10, 2026. The simplest protection is a plan you picked on purpose, with an EFL you've read at your real usage and a renewal date on your calendar. The guide to the best time to renew an electricity contract in Texas explains how to time that.
Rates in this article come from PUCT-posted POLR Electricity Facts Labels as of the dates shown. Plan details and rates subject to change, and an Electricity Facts Label is available for every plan.
ERCOT's December 2026 outlook gives the Texas power grid a 2.95% chance of needing an Energy Emergency Alert in its riskiest hour, 8 a.m. on December's peak-load day. Its January 2027 outlook, posted November 6, 2026, puts the same hour on January's peak-load day at 3.20%. Both are well under the 10% line ERCOT treats as low risk. For your bill, a Texas power grid winter storm can't change a fixed energy rate mid-contract, but it can push your usage up.
The Electric Reliability Council of Texas (ERCOT) posted its Monthly Outlook for Resource Adequacy (MORA) for December 2026 on October 2, 2026, and for January 2027 on November 6, 2026. The December report says its EEA probabilities "remain well below the threshold indicative of 'elevated' reserve shortage risk (10%)." This guide explains what that number means, why winter risk peaks in the morning, what changed since Winter Storm Uri, and which lines on a Texas electric bill a winter storm can and can't touch. Grid figures are as of November 10, 2026, and rule text is as of October 15, 2026.
ERCOT's January 2027 outlook, posted November 6, 2026, puts January's riskiest hour at Hour Ending 8 a.m. CST, the 7 to 8 a.m. hour, with a 3.20% probability that ERCOT would need to declare an EEA on the month's peak-load day. The report says January's EEA probabilities "remain well below the threshold indicative of 'elevated' reserve shortage risk (10%)."
The highest-risk stretch runs from Hour Ending 7 a.m. through 9 a.m., and ERCOT says "there is a slight EEA risk for nearly all hours." It also notes a smaller rise in EEA risk in the evening, "reflecting the increase in lower-temperature-driven and crypto-mining loads." ERCOT's hourly figures are not additive, so 3.20% is a probability for one hour on January's peak-load day, not a chance for the whole month. Here's how the riskiest hour compares with the same hour in last January's outlook:
| Hour Ending 8 a.m. CST, January peak-load day | January 2026 MORA (posted Nov 7, 2025) | January 2027 MORA (posted Nov 6, 2026) |
|---|---|---|
| Chance of normal grid conditions | 97.79% | 95.16% |
| Chance of an Energy Emergency Alert | 1.4% | 3.20% |
| "Chance of Ordering Controlled Outages" column | 1.18% | 2.79% |
| Deterministic load forecast (50th percentile) | 77,387 MW | 78,912 MW |
| Thermal outage assumption, planned plus unplanned | 7,674 MW | 8,105 MW |
| Capacity reserve margin | 46.6% | 44.9% |
Sources: ERCOT MORA reports for January 2026 and January 2027.
That puts January's riskiest-hour figure 1.8 percentage points above last January's. ERCOT's report doesn't give a reason for the year-over-year change, so this guide doesn't guess at one. ERCOT did change its model for this edition: it added a battery storage sub-model that plans when the state's battery fleet charges and discharges, and it says the result is a slightly lower EEA risk than its previous approach would show with everything else held constant.
As in December, wind is the biggest variable. The January report calls variability in wind generation "the greatest risk factor for declaring an EEA in January," and adds that a significantly low battery state of charge "can also be a substantial risk factor." ERCOT expects 1,178 MW more installed winter-rated capacity than when it prepared the December report, made up of 807 MW of energy storage, 325 MW of solar and 46 MW of gas, with wind unchanged. Its separate severe-winter-storm scenario pushes 8 a.m. demand to between 85,000 MW and 99,000 MW, and ERCOT notes that "the probability of the load reaching 99,000 MW for this hour is extremely remote."
The 78,912 MW average-weather forecast for January's riskiest hour sits above the 75,572 MW peak ERCOT reached during Winter Storm Fern in January 2026 and below the all-time winter record of 80,560 MW set on February 20, 2025.
ERCOT's December 2026 outlook says the grid should have enough generating capacity under typical conditions, with the highest reserve shortage risk in the morning. The riskiest hour is Hour Ending 8 a.m. Central Standard Time, meaning the 7 to 8 a.m. hour, with a 2.95% probability that ERCOT would need to declare an EEA.
The MORA is ERCOT's monthly probability check on whether available generation will cover demand on a month's peak-load day. ERCOT issues each report on the first Friday of the month, two months before the month it covers, and lists every edition on its Resource Adequacy page. The December 2026 edition modeled these figures for the riskiest hour:
| December 2026 MORA, Hour Ending 8 a.m. CST | ERCOT figure |
|---|---|
| Chance of normal grid conditions | 94.39% |
| Chance of an Energy Emergency Alert | 2.95% |
| Deterministic load forecast (50th percentile) | 75,148 MW |
| Thermal outage assumption, planned plus unplanned | 12,001 MW |
| Capacity reserve margin | 45.6% |
Source: ERCOT MORA for December 2026, posted October 2, 2026.
The load forecast assumes average weather for the month and includes new large loads ERCOT expects to be energized by December. ERCOT also expects 969 MW more installed winter-rated capacity than when it prepared the November report, led by 900 MW of new solar and 166 MW of new wind. In an October 2 social media post, ERCOT said the report "takes into account expected colder temperatures and increased morning heating demands characteristic of the start of the winter season."
A 2.95% EEA probability is ERCOT's modeled chance that reserves at 8 a.m. on December's peak-load day fall below 2,500 MW, the level at which ERCOT would declare an Energy Emergency Alert. An EEA is an emergency operating step that unlocks extra resources. It is not an outage.
ERCOT's 2026 Energy Emergency Alert Overview says EEA Level 1 begins when operating reserves drop below 2,500 MW and are not expected to recover within 30 minutes. At that stage ERCOT brings additional generation online and can import up to 1,220 MW from neighboring grids. ERCOT says it has about 2,500 MW of additional capacity available once it enters emergency conditions. Controlled outages become possible only at EEA Level 3, when reserves drop below 1,500 MW.
The MORA spells out how to read its own numbers. "ERCOT considers an EEA probability at or below 10% to indicate that the reserve adequacy risk is low for the monthly peak load day," the report says. It adds that "this probability forecast is not intended to predict specific capacity reserve outcomes." ERCOT's hourly tables also note that the probabilities are not additive, so 2.95% is not a chance for the whole month.
ERCOT does not forecast specific outages, and its December and January models both rate the risk as low. For the December 8 a.m. hour, the MORA lists a 2.35% figure under the column it labels "Chance of Ordering Controlled Outages," which tracks reserves falling below 1,500 MW. The January 2027 report lists 2.79% for its 8 a.m. hour. Like the EEA figures, these are modeled probabilities for one hour on a month's peak-load day, not predictions.
Most winter outages Texans experience are local, not grid-wide. During Winter Storm Fern in January 2026, ERCOT's post-event report said localized outages from ice on power lines and falling trees were managed by local electric utilities and "were not related to issues on the ERCOT grid." If your power goes out in a storm, report it to your transmission and distribution utility (TDU), such as Oncor, CenterPoint Energy, AEP Texas or TNMP, not to ERCOT.
December 2026's riskiest-hour EEA probability of 2.95% is higher than last December's 1.81%, and January 2027's 3.20% is higher than last January's 1.4%. Both sit well below the 8.51% ERCOT modeled for January 2025, and every figure in the table below sits under ERCOT's 10% low-risk line.
| MORA report month | Posted | Riskiest hour (CST) | EEA probability |
|---|---|---|---|
| January 2025 | Nov 1, 2024 | Hour Ending 8 a.m. | 8.51% |
| December 2025 | Oct 3, 2025 | Hour Ending 8 a.m. | 1.81% |
| January 2026 | Nov 7, 2025 | Hour Ending 8 a.m. | 1.4% |
| February 2026 | Dec 5, 2025 | Hour Ending 8 a.m. | 1.13% |
| November 2026 | Sept 3, 2026 | Hour Ending 7 p.m. | 3.40% |
| December 2026 | Oct 2, 2026 | Hour Ending 8 a.m. | 2.95% |
| January 2027 | Nov 6, 2026 | Hour Ending 8 a.m. | 3.20% |
Sources: ERCOT MORA reports for January 2025, December 2025, January 2026, February 2026, November 2026, December 2026 and January 2027.
Two points keep the comparison honest. First, December 2026's single riskiest hour (2.95% at 8 a.m.) is lower than November 2026's (3.40% at 7 p.m.). What changes is the timing. The December report says "Morning EEA risk increases relative to November in line with colder temperatures and increased heating loads," and that "Some of the EEA risk is offset by higher wind generation during the month." Second, ERCOT gives no cause for the 1.14-point rise from December 2025 or the 1.8-point rise from January 2026, so this guide does not guess at one.
The load forecast is worth a second look. ERCOT's average-weather forecast for December 2026's riskiest hour, 75,148 MW, sits above the December demand record of 74,525 MW set during Winter Storm Elliott in December 2022, according to ERCOT's January 2026 monthly report. It sits below the all-time winter record of 80,560 MW set on February 20, 2025, according to ERCOT's peak demand records. During Winter Storm Fern, ERCOT's January 2026 peak reached 75,572 MW on January 26.
Winter grid risk peaks in the morning because heating demand climbs before sunrise, when solar generation is little or nothing. ERCOT's January 2026 outlook put it directly: its morning and evening risk periods "correspond to hours with the highest loads and low or no solar production."

Texas heats mostly with electricity. According to the U.S. Energy Information Administration (EIA), citing Census Bureau data, 61% of Texas homes use electricity as their primary heating source, compared with 39% of homes nationwide. Natural gas heats about 35% of Texas homes, and EIA notes that most modern natural gas furnaces still need electricity to ignite and to fan heat through the house.
Wind is the swing factor. The December 2026 MORA calls variability in wind generation "the greatest risk factor for declaring an EEA for the month." The 2.95% figure is also not a storm forecast. ERCOT's base model already folds in weather-related plant outages from potential December storm events.
ERCOT runs a separate severe-winter-storm scenario as well. It pushes 8 a.m. demand to between 78,000 MW and 90,000 MW and adds more weather-related plant outages and wind turbines lost to icing. ERCOT notes that "the probability of the load reaching 90,000 MW for this hour is remote." Both the base model and the storm scenario account for the state's weatherization standard and Firm Fuel Supply Service, an ERCOT program for generators that keep backup fuel available.
Yes, but mostly through usage, not through your price per kWh. A winter storm can't change a fixed energy rate during its term, and it can't put a Texas household on wholesale-indexed pricing. It can push heating usage up, and on a variable-rate plan, higher costs can be reflected in a later month's rate.
The Winter Storm Bill Check is a six-line test that sorts each part of a Texas residential electric bill by whether a winter storm can change it. Run it against your latest bill and your Electricity Facts Label (EFL).
| Bill line | Can a winter storm change it? | Why |
|---|---|---|
| Fixed-rate energy charge | No, not during the term | PURA Section 39.112(a) defines a fixed rate product as one whose price, including recurring charges, "does not change throughout the term of the contract," with narrow exceptions |
| Variable-rate energy charge | Yes, in a later billing cycle | Your provider can reprice a variable plan from one billing cycle to the next under the terms on your EFL |
| Wholesale-indexed price | Not for households | PURA Section 39.110 bars offering a wholesale indexed product to residential or small commercial customers, effective September 1, 2021 |
| TDU delivery charges | Not because of the storm itself | Delivery rates change through utility tariffs and PUCT proceedings, and changes pass through on fixed and variable plans alike under Section 39.112(a) |
| Provider base charge | Not on a fixed plan | Recurring charges are part of the fixed price. On a variable plan, check the EFL terms |
| kWh usage | Yes, and this is the big one | 61% of Texas homes heat with electricity (EIA), so cold days drive usage up on every plan type |
The pattern is simple. Price protection depends on your plan type, but usage protection depends on you.
Yes for the energy charge, though not for every line on the bill. Under PURA Section 39.112(a), as amended by House Bill 16 in 2021, a fixed rate product has a term of at least three months, and its price does not change during that term, "except that the price may vary to reflect actual changes in transmission and distribution utility charges, changes to ERCOT or Texas Regional Entity administrative fees charged to loads, or changes to federal, state, or local laws."
That means a fixed rate is not immune to every change. If your utility's delivery charges move during your contract, your bill can move with them. The guide to TDU delivery charges for Oncor, CenterPoint, AEP and TNMP explains how those charges work. For Ambit Energy customers, Lone Star Classic plans are fixed-rate plans, and the live EFL for your ZIP code shows current pricing. The fixed-rate vs variable-rate guide compares the two in more depth.
Yes. A variable rate can change from one billing cycle to the next, so higher costs during a cold snap can be reflected in a later month's rate. A fixed-rate customer does not carry that risk during the term.
Ambit Energy's Lone Star Flex is a month-to-month, variable-rate plan with no term commitment. The Lone Star Flex guide covers who it fits, and the current rate is always on the live EFL. Contract timing matters here too. Under Section 39.112(h), a customer who doesn't pick a new plan before a fixed contract ends rolls onto a default "month-to-month product in which the price the customer pays for electricity may vary between billing cycles." A contract that expires in December, January or February can put a household on variable pricing in the coldest weeks of the year.
No, not for Texas homes or small businesses. PURA Section 39.110 defines a wholesale indexed product as one whose price "includes a direct pass-through of real-time settlement point prices," and says a retail electric provider, broker or aggregator "may not offer a wholesale indexed product to a residential or small commercial customer." HB 16 took effect September 1, 2021, and applies to enrollments on or after that date.
That ban answers the most painful bills of Winter Storm Uri. FOX 7 Austin reported that one Spring, Texas, customer's daily Griddy statement went from $1.64 on February 10, 2021 to $1,089.72 on February 19, leaving an outstanding balance of $11,048.75. Griddy said the price had reached $9 per kWh. The PUCT later lowered ERCOT's high system-wide offer cap from $9,000 to $5,000 per megawatt-hour, effective January 1, 2022, according to an ERCOT market notice.
Some AI search answers still miss this. One reviewed for this guide on October 15, 2026 said wholesale price spikes "may flow through to indexed or month-to-month plans." For a Texas home, the indexed part has not been possible since 2021. Month-to-month variable plans can still reprice, as explained above.
Usage matters more because every extra kWh of heating is billed at your rate, so a week of freezing weather can raise a bill even when the price per kWh never moves. With 61% of Texas homes heating with electricity, the kWh line is the one most households should watch.
Smart Meter Texas shows up to 24 months of usage history in 15-minute intervals, so you can see exactly what last December, January and February cost you in kWh. Registration asks for your ESI ID, meter number and retail electric provider. ERCOT's own cold-weather tips are behavioral: lower your thermostat by a degree or two if safe to do so, set ceiling fans on reverse to recirculate warm air, and open blinds on sunny days to let the sun warm your home.
Since Winter Storm Uri in February 2021, Texas has required power plants and transmission facilities to weatherize, banned wholesale-indexed residential plans, lowered the wholesale offer cap, and added new reserve tools. In the most recent major winter test, Winter Storm Fern in January 2026, ERCOT issued no Energy Emergency Alert.
Uri set the baseline. At the peak of the February 2021 blackouts, ERCOT took about 20,000 MW of demand offline, enough to power roughly 5 million homes, according to The Texas Tribune. More than 4.5 million Texans lost electricity, many for days. The storm was linked to 246 deaths and an estimated $80 billion to $130 billion in economic damage.
| Grid factor | February 2021 (Uri) | Winter 2026-27 |
|---|---|---|
| Wholesale-indexed plans for homes | Allowed | Banned since September 1, 2021 (HB 16) |
| High system-wide offer cap | $9,000 per MWh | $5,000 per MWh since January 1, 2022 |
| Power plant and transmission weatherization | No mandatory standard | Required, with ERCOT inspections |
| Real-Time Co-optimization Plus Batteries (RTC+B) | Not in place | Implemented December 2025 |
| February demand record | 69,812 MW, set February 14, 2021 | 80,560 MW, set February 20, 2025 |
ERCOT's Fern report lists the changes it credits. Power plants and transmission facilities "are required to be weatherized for extreme weather events," and ERCOT planned at least 450 inspections during the 2025-26 winter season. ERCOT also cited more reserve power, bringing generation online earlier during high demand, and backup fuel at some plants. During Fern, ERCOT said it "did not need to call for conservation, did not issue an Energy Emergency Alert (EEA), and there were no systemwide power outages."
PUCT Chair Thomas Gleeson pointed to that record. "The proof these reforms have strengthened the grid is in the performance of the grid," Gleeson wrote in a statement quoted by The Texas Tribune. He closed the statement with: "Texans can be confident in their electric grid."
Not everyone reads Fern as a full test. Virginia Palacios, executive director of Commission Shift, said Fern was far less severe than Uri, which makes it hard to judge whether natural gas weatherization is working. "We don't really have good data on that," Palacios told the Tribune. Matthew Boms, executive director of the Texas Advanced Energy Business Alliance, pointed to demand growth instead. "The real stress test is what happens as demand grows faster than infrastructure," Boms said.
Texas rules bar retail electric providers from authorizing a disconnection for nonpayment in any county under an extreme weather emergency, and they require providers to offer residential customers a deferred payment plan on request for bills due during it. This is not a new rule. The current version of 16 TAC Section 25.483 took effect July 19, 2023.

Under Section 25.483(j), a provider with disconnection authority "must not authorize a disconnection for nonpayment of electric service for any customer in a county in which an extreme weather emergency occurs." In winter, the rule defines an extreme weather emergency as a day when "the previous day's highest temperature did not exceed 32 degrees Fahrenheit, and the temperature is predicted to remain at or below that level for the next 24 hours anywhere in the county, according to the nearest National Weather Service (NWS) reports."
Three details matter in practice:
If a bill dispute comes up later, the guide to disputing an electric bill in Texas walks through the PUCT complaint process.
A Critical Care Residential Customer is a household with someone permanently living there whom a physician has diagnosed as dependent on an electric-powered medical device to sustain life, under 16 TAC Section 25.497. That designation lasts two years. A related Chronic Condition designation covers serious conditions that require an electric-powered medical device or electric heating or cooling.
To apply, the customer completes page 2 of the PUCT critical care form, and the patient's physician completes page 3 and sends it by fax or email to the TDU. Designated customers get notice of service interruptions and added disconnection protections. Two limits apply. Section 25.497(c)(4) says designation "does not guarantee the uninterrupted supply of electricity," and the PUCT form says it "does not relieve a customer of the obligation to pay for electric service." Households that rely on electric medical equipment should talk with their physician and their TDU about a plan well before a freeze.
ERCOT's Texas Advisory and Notification System (TXANS) is the fastest way to check Texas power grid status during a winter storm. It moves through set levels, from an early Weather Watch to Energy Emergency Alerts, and you can get it by email, on the ERCOT mobile app or on social media.
| ERCOT notice | What it means | What ERCOT asks |
|---|---|---|
| Weather Watch | Forecasted significant weather, high demand and potential for lower reserves, about 3 to 5 days ahead | Monitor grid conditions |
| Voluntary Conservation Notice | Higher demand forecasted with lower energy supply | Voluntarily conserve during the stated period, if safe to do so |
| Conservation Appeal | Potential to enter emergency operations due to lower reserves | Conserve during the appeal period, if safe to do so |
| EEA Level 1 | Reserves below 2,500 MW, not expected to recover within 30 minutes | Keep monitoring grid updates |
| EEA Level 2 | Reserves below 2,000 MW | Conservation requests, demand response deployed |
| EEA Level 3 | Reserves below 1,500 MW | Controlled outages possible |
Sources: ERCOT TXANS and ERCOT's 2026 Energy Emergency Alert Overview.
ERCOT notes that TXANS notifications do not replace Energy Emergency Alerts, so sign up for both. Its public dashboards show live supply and demand. The guide to ERCOT's July 13, 2026 conservation notice shows how one of these notices played out on Texas bills.
An ERCOT Weather Watch is an early notice, about 3 to 5 days ahead, of forecasted significant weather and high demand. It is the lowest TXANS level, and it asks Texans only to monitor conditions. ERCOT issued a Weather Watch on January 21, 2026, ahead of Winter Storm Fern, and the grid then came through the storm without a conservation request.
The best time to prepare for a Texas winter storm is before December, while you still have time to change plans. Work through these seven steps:

For background on how providers, utilities and ERCOT fit together, see how Texas deregulated electricity works.
ERCOT's December 2026 outlook says capacity should be sufficient under typical conditions. Its riskiest hour, 8 a.m. on December's peak-load day, carries a 2.95% Energy Emergency Alert probability, under ERCOT's 10% low-risk line. ERCOT says the figure is not a prediction of specific outcomes.
ERCOT's January 2027 outlook, posted November 6, 2026, gives its riskiest hour, 8 a.m. on January's peak-load day, a 3.20% Energy Emergency Alert probability, up from 1.4% in the January 2026 outlook. That's still under ERCOT's 10% low-risk line, and ERCOT says its probability forecast is not intended to predict specific outcomes.
No. Under PURA Section 39.112(a), a fixed rate product's price does not change during the term. The only exceptions are actual changes in TDU charges, ERCOT or Texas Regional Entity administrative fees, and changes in federal, state or local law.
Not in a county under an extreme weather emergency. Under 16 TAC Section 25.483(j), that is a day when the previous day's high did not exceed 32 degrees Fahrenheit and the temperature is forecast to stay at or below 32 degrees for the next 24 hours anywhere in the county. You still owe the bill, but you can ask for a deferred payment plan.
An Energy Emergency Alert is ERCOT's emergency operating mode when reserves run low. EEA Level 1 starts below 2,500 MW of reserves, Level 2 below 2,000 MW, and Level 3 below 1,500 MW, when controlled outages become possible.
ERCOT targets a new MORA for the first Friday of each month, covering the month two months ahead. It posted the January 2027 report on November 6, 2026, and the February 2027 report is targeted for December 4, 2026.
A winter storm can't rewrite a fixed contract or put a Texas home on wholesale pricing, and ERCOT rates December and January grid risk as low. What it can do is drive up the kWh on your bill. Check your contract end date, read your EFL, and look at last winter's usage now, while you still have time to choose.
Plan details and rates subject to change. Grid figures are from ERCOT reports as of November 10, 2026, and rule text is from PUCT and Texas statutes as of October 15, 2026.
Update, November 10, 2026: Three CenterPoint changes were filed between November 3 and November 9, 2026. Only one of them moves your bill, by about 28 cents a month at 1,000 kWh.
CenterPoint delivery charges in Houston changed three times in seven weeks this fall, and a fourth, smaller change takes effect November 13, 2026. For meters read from September 30, 2026, the residential delivery charge is 6.5333 cents per kWh plus $4.90 a month (as of November 1, 2026, per the PUCT). Effective November 13, 2026, it's 6.5611 cents per kWh plus $4.90 a month, per CenterPoint's November 3 compliance filing. At 1,000 kWh that comes to $70.51, about 28 cents more than the $70.23 that applied from September 30 and $15.80 more than in late August.
Here is the sequence. The per-kWh charge dipped from 5.1461 to 4.9811 cents effective August 15, 2026, then jumped to 6.4130 cents effective September 1, mostly because CenterPoint's transmission cost rider nearly doubled. Effective September 30, an interim order in PUCT Docket No. 59981 raised the Distribution Cost Recovery Factor (DCRF) from 0.4934 to 0.6137 cents per kWh. The new DCRF replaces the old one instead of stacking on top of it. The Commission's final order, filed November 5, 2026, kept the residential DCRF at that same 0.6137 cents. Effective November 13, the end of CenterPoint's TC5 refund credit adds 0.0278 cents, which takes the total to 6.5611 cents.

CenterPoint delivery charges are the PUCT-approved fees CenterPoint Energy Houston Electric collects to carry electricity over its poles, wires and substations to homes and businesses in the Houston area. Your retail electric provider (REP) passes them through at the same amount no matter which company you buy power from. Whether your plan is with Ambit Energy, TXU, Reliant, Direct Energy or Green Mountain, the CenterPoint charges for the same usage are identical.
For a home, the charge has two parts. The fixed part is $4.90 a month, made up of a $2.11 customer charge and a $2.79 metering charge. The variable part is a per-kWh charge, which is 6.5611 cents per kWh effective November 13, 2026, up from 6.5333 cents for meters read from September 30.
That per-kWh number is really a stack of smaller charges. There is a base distribution rate set in CenterPoint's last full rate case, plus riders that let the utility update specific costs between rate cases. The two riders behind most of this fall's changes are the Transmission Cost Recovery Factor (TCRF) and the Distribution Cost Recovery Factor (DCRF). A third, the TC5 refund credit, is the small one that ends November 13. Every rider change needs PUCT approval before it can appear on a bill, which is why each number in this article traces to a public docket or a published rate notice.
The Houston Delivery Timeline is the simplest way to see which CenterPoint rate applied to a given bill. Between June 1 and November 13, 2026, CenterPoint's residential per-kWh charge takes five different values, while the $4.90 monthly charge never moves.
| In effect (2026) | Per-kWh charge | Monthly charge | What changed |
|---|---|---|---|
| June 1 to August 14 | 5.1461 cents | $4.90 | June 1 update (BKV Energy) |
| August 15 to August 31 | 4.9811 cents | $4.90 | Emergency-generation (TEEEF) rider cut, PUCT Docket No. 57980 |
| September 1 to September 29 | 6.4130 cents | $4.90 | Transmission rider (TCRF) update, PUCT Docket No. 59825 |
| Meters read September 30 to November 12 | 6.5333 cents | $4.90 | Distribution rider (DCRF) update, PUCT Docket No. 59981 (interim rate, made final November 5) |
| November 13 onward | 6.5611 cents | $4.90 | TC5 refund credit ends, PUCT Tariff Control No. 60469 |
To use the timeline on your own bill, run a three-step read-date check:
Some plans fold delivery into a single all-in price per kWh, so you may not see a separate delivery line. The delivery cost is still in there.

On August 15, 2026, CenterPoint's residential per-kWh delivery charge fell from 5.1461 to 4.9811 cents per kWh (effective August 15, 2026), while the $4.90 monthly charge held steady. According to BKV Energy's rate notice, that saved about $1.65 a month at 1,000 kWh and $3.30 a month at 2,000 kWh.
The cut came from a single rider. CenterPoint's Rider TEEEF (Temporary Emergency Electric Energy Facilities) recovers the cost of mobile generators the utility leased for emergencies. A settlement in PUCT Docket No. 57980 with Commission Staff and several cities removed certain of those units from the rider's revenue requirement, according to EnergyChoiceMatters' June 29, 2026 report. The residential TEEEF rate fell from 0.2392 to 0.0742 cents per kWh (effective August 15, 2026). That 0.1650-cent drop matches the change in the total exactly. The PUCT's final order in that docket, filed November 5, 2026, kept the 0.0742-cent residential rate and says no refund or surcharge is needed.
It was less a price cut than a partial reversal. BKV Energy reported that the same charge had risen on June 1, 2026, from 4.9715 to 5.1461 cents per kWh (as of June 1, 2026). The August 15 rate landed within a hundredth of a cent of the pre-June level.
North Texas saw a similar pattern this summer. Oncor's per-kWh delivery charge went down on August 1, 2026, and as we explained in our Oncor August 1 delivery charge breakdown, the Dallas-area bill still went up. The CenterPoint story has the same shape: a small decrease that was gone within weeks.
CenterPoint delivery charges jumped on September 1, 2026 because of transmission costs. The per-kWh charge rose from 4.9811 to 6.4130 cents per kWh (effective September 1, 2026), about 28.7 percent, and nearly all of that came from the Transmission Cost Recovery Factor.
The Transmission Cost Recovery Factor (TCRF) is the rider a Texas utility uses to update the transmission costs it recovers between rate cases, including what it pays to use other utilities' transmission lines across the ERCOT grid. In PUCT Docket No. 59825, approved July 8, 2026, CenterPoint's residential TCRF rose from 1.6173 to 3.0812 cents per kWh (effective September 1, 2026). That 1.4639-cent increase is slightly larger than the 1.4319-cent rise in the total. The rest of the stack moved down a little, including a small DCRF dip from 0.4944 to 0.4934 cents per kWh under CenterPoint's rate notice effective September 1, 2026.

Transmission weighs more heavily on Houston households than the headline rate suggests. The Texas Energy Poverty Research Institute's ERCOT Electricity Affordability Outlook found that in CenterPoint's service territory in 2023, residential customers used 33 percent of the electricity but were allocated 49 percent of the transmission costs.
You may have read that the fall increase came from Hurricane Beryl. The filings don't show that. CenterPoint's recovery of costs from Hurricanes Beryl and Francine and Winter Storm Enzo was approved earlier, and Energy Ogre's Q1 2026 Texas electricity market update put it at about $2.00 a month for a 1,000 kWh customer, reflected in the March 2026 adjustment.
For meters read on or after September 30, 2026, CenterPoint's residential DCRF rose from 0.4934 to 0.6137 cents per kWh (effective September 30, 2026). The DCRF is the rider that lets CenterPoint recover new distribution investment, meaning local poles, wires and substations, between full rate cases. It was already on your bill at 0.4934 cents and already counted in the September 1 total, so the interim rate replaces that level instead of adding on top of it. The net change is 0.1203 cents, which takes the total to 6.5333 cents per kWh (as of October 1, 2026).
That distinction is easy to miss. Adding the full 0.6137 cents to the September 1 rate would put the total near 7.03 cents and overstate the September 30 increase about fivefold. The PUCT's own October 1, 2026 rate summary lists 6.5333 cents, and so does its November 1 summary.
Here is how PUCT Docket No. 59981 moved from application to final order:
The settlement agreed to CenterPoint's proposed load-growth-adjusted DCRF revenue requirement of $352,318,850 and listed the residential rate at $0.006137 per kWh, the same as the interim rate. The final order, filed November 5, 2026, kept that residential rate. As of November 10, 2026, the DCRF on your bill stays at 0.6137 cents per kWh, with no new effective date to watch for. You can read the order and CenterPoint's November 9 compliance tariff on the PUCT Interchange page for Docket No. 59981.
The meter read date decides when you see it. Most Houston meters are read on a rolling monthly schedule. If yours is usually read around the 22nd, your September 22 read used 6.4130 cents and your October 22 read is the first to carry the new DCRF.
At 1,000 kWh, the CenterPoint delivery portion of a Houston bill went from $54.71 in late August to $69.03 in September to $70.23 for meters read from September 30, 2026, and it's $70.51 effective November 13, 2026. The September 30 step added about $1.20 a month and the November 13 step adds about 28 cents. Most of the $15.80 rise since late August came on September 1.
CenterPoint residential delivery cost, before supply charges from your provider:
| Rate in effect | 500 kWh | 1,000 kWh | 2,000 kWh |
|---|---|---|---|
| August 15 to August 31, 2026 | $29.81 | $54.71 | $104.52 |
| September 1 to September 29, 2026 | $36.97 | $69.03 | $133.16 |
| September 30 to November 12, 2026 | $37.57 | $70.23 | $135.57 |
| From November 13, 2026 | $37.71 | $70.51 | $136.12 |
| Change, September 1 to September 30 | +$0.60 | +$1.20 | +$2.41 |
| Change, September 30 to November 13 | +$0.14 | +$0.28 | +$0.55 |
| Change, August 15 to November 13 | +$7.90 | +$15.80 | +$31.60 |
The September 30 row matches the PUCT's November 1, 2026 rate summary to the penny, and the November 13 figure at 1,000 kWh matches the $70.51 in CenterPoint's November 3, 2026 compliance filing.
Here is how CenterPoint stacks up against the other big ERCOT delivery utilities:
| Utility (as of November 2026) | Monthly charges | Per-kWh charge | Delivery cost at 1,000 kWh |
|---|---|---|---|
| CenterPoint (Houston), from November 13, 2026 | $4.90 | 6.5611 cents | $70.51 |
| Oncor (Dallas-Fort Worth), from October 4, 2026 | $4.06 | 6.8673 cents | $72.73 |
| AEP Texas Central | $3.24 | about 5.7 cents | $60.15 |
| AEP Texas North | $3.24 | about 5.6 cents | $59.00 |
| TNMP | $7.56 | 7.7710 cents | $85.27 |
Source: PUCT residential TDU delivery charges, as of November 1, 2026. The CenterPoint row adds the end of the TC5 refund credit effective November 13, 2026, per CenterPoint's compliance filing under PUCT Tariff Control No. 60469. The Oncor row reflects Oncor's October 4, 2026 increase from 6.0295 to 6.8673 cents per kWh, per BKV Energy's rate notice, which the PUCT's November 1 summary also lists.
Those figures cover delivery only. Your total bill also includes the supply charge you pay your provider. According to Energy Ogre's Q2 2026 Texas electricity market update, citing EIA data, Texas residential customers paid about 15.41 cents per kWh all-in in Q2 2026, roughly 13 percent below the 17.65-cent national average (as of June 11, 2026). CenterPoint customers in Houston averaged closer to 14.93 cents. Those averages predate the September changes.
No, not from these line items. A fixed-rate plan locks the supply portion of your bill, which is the part your provider controls. Delivery charges are set through the PUCT and passed through unchanged, so a TCRF or DCRF increase shows up on your bill even if you signed a 24-month fixed contract last week.
That's also why the average price on your Electricity Facts Label is a snapshot. The label shows average prices at 500, 1,000 and 2,000 kWh with delivery charges included, using the delivery rates in effect when the label was issued. Our guide to reading a Texas Electricity Facts Label covers the six numbers worth checking.
The upside is real, though. A fixed rate keeps the supply side steady when wholesale prices spike, as they can in a Texas summer. On July 22, 2026, ERCOT demand hit a record 91,308 megawatts, according to the Texas Tribune. For a longer look at the fixed-versus-variable question, see our breakdown of the Texas fixed-rate lock decision for August 2026.
Delivery charges are the same for every provider, so the levers you control are the supply rate and your usage. A few practical moves for the next 60 days:
Delivery charges are rising because Texas is building grid to keep up with demand. ERCOT CEO Pablo Vegas told the Texas Senate Business and Commerce Committee in July 2026 that statewide demand could reach roughly 175,000 megawatts by 2032, nearly double the July 22 record, the Texas Tribune reported. "Texas is continuing to grow beyond data centers significantly," said Thomas Gleeson, chair of the Public Utility Commission of Texas.
That growth needs new poles, wires, substations and transmission lines, and the TCRF and DCRF are how utilities recover those costs between rate cases. The Texas Energy Poverty Research Institute (TEPRI) reported that ERCOT residential electricity rates rose about 30 percent since 2021 and projected a further 29 percent increase from 2025 to 2030, from 15.33 to 19.75 cents per kWh (as of December 9, 2025), driven mainly by planned transmission and distribution investment. TEPRI's forecast model was designed by Kit Pevoto, an independent electric rate expert who spent twelve years at the PUCT as manager of its Costing and Pricing Section. TEPRI Executive Director Margo Weisz presented the findings in a January 2026 webinar.
David Kinchen, Chief Operating Officer at Energy Ogre, put it plainly in his Q1 2026 market update: "Delivery fees are rising regardless of your provider." The September 30 rider is part of that longer pattern, not a one-time event.
Yes. CenterPoint delivery charges are PUCT-approved and passed through at the same amount by every provider in the CenterPoint territory. Whether you buy from Ambit, TXU, Reliant, Direct Energy or Green Mountain, the delivery charges for the same usage are identical.
On the first bill with a meter read on or after September 30, 2026. For most households that is the October bill. The new DCRF replaces the old one, so the total rises 0.1203 cents to 6.5333 cents per kWh (as of October 1, 2026), about $1.20 a month at 1,000 kWh. The November 5, 2026 final order kept that rate.
Yes, once. Effective August 15, 2026, the residential per-kWh charge dropped from 5.1461 to 4.9811 cents per kWh, a decrease of about 3.2 percent, after a settlement cut the TEEEF emergency-generation rider. The $4.90 monthly charge stayed the same.
PUCT Docket No. 59981 is CenterPoint Energy Houston Electric's application to update its Distribution Cost Recovery Factor. Order No. 6, filed August 14, 2026, approved interim rates for meters read on or after September 30, 2026, subject to reconciliation once the Commission approved final rates. The final order, filed November 5, 2026, made the interim rates final without changes.
No. The Commission's final order in Docket No. 59981 set the residential DCRF at $0.006137 per kWh, the same as the interim rate, and its final order in Docket No. 57980 kept the residential TEEEF at $0.000742 per kWh. Both orders were filed November 5, 2026, and neither changes the delivery charge on your bill.
Because a credit ends. Since May 18, 2026, CenterPoint's Rider TC5 Refund has been returning about $14.9 million in overcollected transition charges as a credit of 0.0278 cents per kWh. CenterPoint's November 3, 2026 compliance filing sets that credit to zero effective November 13, 2026. The per-kWh charge goes from 6.5333 to 6.5611 cents, about 28 cents a month at 1,000 kWh.
No. Every provider passes through the same PUCT-approved delivery charges. Switching can lower your supply charges but can't change the delivery portion, so compare plans on the average price shown on each Electricity Facts Label rather than the supply rate alone.
Plan details and rates subject to change. An Electricity Facts Label is available for every Ambit residential plan. New service is subject to credit approval. Delivery rates and tariffs cited above are current as of November 10, 2026. Visit ambitenergy.com for full plan terms. This article is from Ambit Energy, VIP Energy Service.
Lubbock electricity rates change on November 1, 2026, when Lubbock Power & Light (LP&L) adds a $2.50 monthly base charge and cuts its per-kWh residential delivery rate from 6.312 cents to 6.008 cents. Homes that use less than about 822 kWh a month will pay slightly more for delivery. Homes that use more will pay slightly less.
The change applies to every LP&L residential meter, no matter which retail electric provider you buy power from, and it starts with the meters LP&L bills on or after November 1. The swing is small. At 500 kWh a month, delivery charges rise $0.98. At 2,000 kWh, they fall $3.58. Every dollar figure in this article is LP&L delivery charges only, as of October 8, 2026, before taxes and before your provider's energy charge, under the City of Lubbock FY 2026-2027 System Delivery Tariff effective November 1, 2026.
Under the tariff on file as of October 8, 2026, LP&L's residential delivery charge changes on November 1 from a purely per-kWh rate to a two-part rate: a $2.50 monthly base charge plus 6.008 cents per kWh. Only one piece of the per-kWh rate drops. The delivery system charge falls from 5.628 cents to 5.324 cents, while the transition charge and franchise fee stay exactly where they are.
| LP&L residential charge (cents per kWh unless noted) | Through October 31, 2026 | From November 1, 2026 | Change |
|---|---|---|---|
| Base charge (dollars per month) | $0.00 | $2.50 | +$2.50 |
| Delivery system charge | 5.628 | 5.324 | -0.304 |
| Transition charge | 0.167 | 0.167 | None |
| Franchise fee | 0.517 | 0.517 | None |
| Total per kWh | 6.312 | 6.008 | -0.304 |
The new figures come from section 5.3.H of the tariff (page 48). The 6.312-cent current total and the 6.008-cent new total both appear in LP&L's September 8, 2026 presentation to the Lubbock City Council. The current 5.628-cent delivery system charge is the 6.312-cent total minus the two unchanged charges.
A base charge is a fixed monthly fee a utility bills for each meter, whatever the meter records. LP&L's transition charge recovers the cost of moving Lubbock into the ERCOT grid and the competitive retail market. "The transition cost is to pay off the stranded debt and assets in closing off the business and moving to the competitive model," LP&L representative Matt Rose told KCBD in January 2024. The franchise fee pays the City of Lubbock for the use of public rights of way.
Lubbock homes that use less than 822 kWh in a month pay more for delivery under the new structure, and homes above 822 kWh pay less. The $2.50 base charge is offset by a 0.304-cent cut on every kWh, and $2.50 divided by $0.00304 is 822 kWh.
| Monthly usage | Delivery cost through Oct 31 | Delivery cost from Nov 1 | Monthly change | Yearly change at that average |
|---|---|---|---|---|
| 500 kWh | $31.56 | $32.54 | +$0.98 | +$11.76 |
| 750 kWh | $47.34 | $47.56 | +$0.22 | +$2.64 |
| 1,000 kWh | $63.12 | $62.58 | -$0.54 | -$6.48 |
| 1,500 kWh | $94.68 | $92.62 | -$2.06 | -$24.72 |
| 2,000 kWh | $126.24 | $122.66 | -$3.58 | -$42.96 |
| 3,000 kWh | $189.36 | $182.74 | -$6.62 | -$79.44 |

For context, the average Texas home used 1,096 kWh a month in 2024, according to the U.S. Energy Information Administration (EIA). A Lubbock household at that average would save about $0.83 a month on delivery. The households most likely to pay more are apartments, small homes and mostly empty properties such as a vacant rental. Large homes, homes running pool pumps and households charging an electric vehicle come out ahead.
A common misreading of LP&L's council slide compares the new 5.324-cent delivery system charge with the old 6.312-cent total. An AI search answer reviewed for this article on October 8, 2026 made exactly this mistake. That sets a partial rate against a full one. The transition charge (0.167 cents) and franchise fee (0.517 cents) still apply after November 1, so the real per-kWh cut is 0.304 cents, not nearly a full cent. At 1,000 kWh, the mistake shows a new delivery cost of $55.74 instead of the correct $62.58, and it pushes the break-even down to about 253 kWh instead of 822 kWh.
The mix-up is understandable. The slide lists the new residential rate as a $2.50 monthly base charge and a 5.324-cent kWh charge, with a footnote that the kWh charge does not include the transition charge and franchise fee. Read the footnote and the totals line up.
The 822-kWh Break-Even Test is a four-step check that tells you whether LP&L's new structure raises or lowers your yearly delivery cost. You need your last 12 months of usage, which is printed on each bill and stored in your provider's online account.

The test works on the annual total because the new structure is linear, with no usage tiers. A home that uses 600 kWh in April and 1,600 kWh in August pays a little more in the mild months and a little less in the hot ones, and the 12-month total decides the result. If your summer usage runs high, the guide to how many kWh a Texas home uses per day in summer shows where those peaks come from.
LP&L added the base charge to steady its revenue, not to raise it. The utility's cost-of-service study found a $6.1 million gap between what it needs to collect and what current rates bring in, and staff chose to restructure rates instead of asking for an increase.
According to LP&L's September 8, 2026 council presentation, the delivery business has a revenue requirement of $143,396,971 against $137,292,568 in revenue at current rates. That $6,104,403 deficit would have justified a 4.45 percent rate increase. The staff proposal was no rate revenue increase.
The gap comes from selling fewer kWh. LP&L's presentation shows degree days, a measure of how far daily temperatures stray from 65 degrees, falling from 5,467 in fiscal 2021-22 to a forecast 4,662 in fiscal 2025-26, a 14.7 percent drop. Milder weather means less air conditioning and heating, and a utility paid entirely by the kWh feels that directly.
According to KCBD's report on the vote, Chief Administrative Officer Joel Ivy blamed falling revenue on weather patterns and more energy-efficient appliances. He said the base charge would account for 6 percent of total revenue. "It's not going to push us over the top or anything, but it solidifies a certain amount of money so that we can count on having that," Ivy said. He also noted that Oncor and CenterPoint have always billed a base charge.
Rose framed the result as holding the line. "We can still hold our rates the same, but at this point in time, we're not able to lower our rate," he said.
The Lubbock City Council approved the FY 2026-2027 delivery rates 5-2 on September 8, 2026, with Mayor Mark McBrayer and Councilman Gordon Harris voting against. McBrayer argued that LP&L should have trimmed spending once it saw usage falling. "If you saw that going down, then you need to go into your budget and start cutting in your budget," McBrayer said.
That local vote is the key difference from the rest of the competitive Texas market. The Public Utility Commission of Texas (PUCT) sets delivery rates for Oncor, CenterPoint, AEP Texas and TNMP. LP&L is a city-owned utility, so its Electric Utility Board recommends delivery rates and the City Council approves them, as the tariff's own introduction states.
Even with the new base charge, Lubbock's residential delivery cost lands in the middle of the Texas competitive market. At 1,000 kWh, LP&L's new rate costs $62.58 a month, below Oncor, CenterPoint and TNMP and above both AEP Texas zones, as of October 8, 2026.
| Utility | Monthly base charge | Per-kWh delivery charge | Delivery cost at 1,000 kWh |
|---|---|---|---|
| TNMP | $7.56 | 7.7710 cents | $85.27 |
| Oncor | $4.06 | 6.8673 cents | $72.73 |
| CenterPoint | $4.90 | 6.4130 cents | $69.03 |
| LP&L, through Oct 31, 2026 | $0.00 | 6.312 cents | $63.12 |
| LP&L, from Nov 1, 2026 | $2.50 | 6.008 cents | $62.58 |
| AEP Texas Central | $3.24 | 5.6898 cents | $60.14 |
| AEP Texas North | $3.24 | 5.5751 cents | $58.99 |
Non-LP&L rates come from BKV Energy's historical TDU delivery charge tracker, compiled from PUCT and utility tariffs and updated October 2026. LP&L's $2.50 is still the smallest fixed delivery fee in the group.
The comparison also explains LP&L's talking point. Oncor's per-kWh delivery charge rose from 5.6183 cents on March 1, 2026 to 6.8673 cents on October 4, 2026, per the same tracker. "We have been able to maintain our rate when we've seen the other light providers across the state going up by a pretty substantial amount," Rose told KCBD in August 2026. For a line-by-line look at those other utilities, see the guide to TDU delivery charges for Oncor, CenterPoint, AEP and TNMP.
Lubbock's residential delivery charge has moved three times since retail competition opened in 2024: 6.442 cents at launch, 6.312 cents after a 2 percent cut in November 2024, and 6.008 cents plus a $2.50 base charge from November 1, 2026.
| Period | Monthly base charge | Total delivery (cents per kWh) | What happened |
|---|---|---|---|
| March 2024 launch | $0.00 | 6.442 | Retail competition begins in LP&L territory |
| November 2024 to October 2026 | $0.00 | 6.312 | Electric Utility Board approves a 2 percent cut |
| From November 1, 2026 | $2.50 | 6.008 | Base charge added, per-kWh rate cut |
Retail choice is still new in Lubbock. The City Council passed an irrevocable resolution opting into retail competition on February 22, 2022, according to the tariff. Customers shopped from January 5 to February 15, 2024, and anyone who did not choose was randomly assigned to Octopus Energy, Reliant or TXU Energy, KCBD reported. The Lubbock Avalanche-Journal reported the 2 percent cut in September 2024, ahead of its November start. For the bigger picture, here is how Texas deregulated electricity works.
The new rates apply to meters LP&L bills on or after November 1, 2026, so for most households the first bill with the $2.50 base charge arrives in November. The tariff keys on LP&L's billing date, not on the day you used the power, so that first bill may cover some October days at the new rates.
Section 5.3.G of the tariff says the rates apply "for all Meters billed by LP&L on or after November 1, 2026." EnergyChoiceMatters reported that the new rates apply to all new 810 billing transactions, the invoices LP&L sends to retail providers, created on and after November 1. The tariff does not promise to split one billing cycle between the old and new rates. LP&L posts its 2026 meter reading schedule on the City of Lubbock website if you want to see your cycle date.
No. Every retail electric provider in LP&L territory passes the same LP&L delivery charges through at cost, so the $2.50 base charge follows your meter, not your plan. What you can still shop is the energy charge, the part your provider sets, along with any provider base charge or bill credit layered on top.

Some LP&L-area Electricity Facts Labels already carry a line for this fee. A Reliant EFL for the LP&L service area dated November 1, 2024 lists "Lubbock Power & Light Monthly Charges: $0.00 per month" and states that LP&L delivery charges are "passed through without mark-up." On plans that itemize LP&L charges, that line becomes $2.50. Texas rules allow a fixed-rate plan's price to move when utility delivery charges change, so your EFL and terms of service tell you whether your plan passes LP&L's change through.
The base charge also nudges the average prices printed on every EFL. Under the new tariff, delivery alone works out to 6.508 cents per kWh at 500 kWh, 6.258 cents at 1,000 kWh and 6.133 cents at 2,000 kWh, versus a flat 6.312 cents today, as of October 8, 2026. That raises each pass-through plan's 500 kWh price by about 0.2 cents and lowers its 2,000 kWh price by about 0.18 cents. Because every plan moves by the same amount, the change does not reshuffle which plan is cheapest.
Fixed charges stack. A plan with its own monthly base charge or a minimum-usage fee now sits on top of LP&L's $2.50. For example, an apartment using 500 kWh on a plan with a $9.95 provider base charge would pay $12.45 in fixed fees before a single kWh is billed, adding about 2.5 cents to the cost of each kWh. Small households should compare plans at the 500 kWh column of the EFL, not the 1,000 kWh headline. If your contract is ending soon, the guide on when to renew a Texas electricity contract covers the timing.
No. The change applies only to residential customers on LP&L's delivery system. Some addresses inside Lubbock city limits get power from South Plains Electric Cooperative or Southwestern Public Service Company, which the tariff names as the other two utilities serving the city, and those addresses are not affected.
LP&L was established in 1916, owns and operates more than 107,000 electric meters, and is the largest municipal electric system in West Texas and the third largest in the state, according to the tariff. Your bill or EFL names your delivery utility. If it says Lubbock Power & Light, the new structure applies to you. Business rate classes have their own base charges under the same tariff.
The next change is on LP&L's revenue side. Starting in January 2027, LP&L begins receiving its full ERCOT transmission revenue after a five-year period in which ERCOT withheld $110 million, about $22 million a year, to hold other Texas ratepayers harmless from Lubbock's grid connection, KCBD reported in August 2026.
Rose said the returning revenue will go straight into infrastructure, with about $47 million a year in upgrades planned starting in 2027. McBrayer objected to spending money freed up from the ERCOT arrangement on capital projects such as a new substation and the demolition of the retired Massengale Substation. LP&L has set new delivery rates each fall, effective November 1, so the next look at Lubbock delivery charges will likely come with the fiscal 2027-28 budget. For now, run the 822-kWh Break-Even Test, check your EFL, and compare plans on the energy charge, the part of Lubbock electricity rates you still control.
LP&L's new residential base charge is $2.50 per month per meter. It applies to meters LP&L bills on or after November 1, 2026, alongside a delivery rate of 6.008 cents per kWh under the tariff as of October 8, 2026.
Your delivery charges go up only if you use less than 822 kWh in a month. The change ranges from an extra $0.98 at 500 kWh to a $3.58 saving at 2,000 kWh. Your provider's energy charge is separate and does not change because of this tariff.
The Lubbock City Council approves LP&L's delivery rates on the recommendation of the Electric Utility Board. The PUCT sets rates for Oncor, CenterPoint, AEP Texas and TNMP, but not for city-owned LP&L.
No. LP&L delivery charges, including the $2.50 base charge, apply to every LP&L residential meter regardless of provider. Switching changes your energy charge, not your delivery charge.
As of October 8, 2026, the transition charge is 0.167 cents per kWh and the franchise fee is 0.517 cents per kWh. The transition charge recovers the debt and costs of moving LP&L into ERCOT and retail competition, and the franchise fee pays the City of Lubbock for use of public rights of way. Neither changes on November 1, 2026.
Plan details and rates subject to change. LP&L delivery figures reflect the City of Lubbock FY 2026-2027 System Delivery Tariff as of October 8, 2026, and other utilities' delivery rates reflect published tariffs as of the same date.



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