ERCOT's December 2026 Outlook Puts Grid Emergency Odds at 2.95% in Its Riskiest Hour. What a Texas Winter Storm Can and Can't Do to Your Electric Bill

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.

Key takeaways

• ERCOT's December 2026 MORA, posted October 2, 2026, puts the highest Energy Emergency Alert (EEA) risk at Hour Ending 8 a.m. CST on December's peak-load day, at 2.95%. ERCOT considers anything at or below 10% low risk.
• The same hour carried a 1.81% EEA probability in ERCOT's December 2025 outlook, so the riskiest-hour figure is up 1.14 percentage points from a year earlier. ERCOT did not give a reason for the year-over-year change.
• ERCOT's January 2027 MORA, posted November 6, 2026, puts January's riskiest hour, Hour Ending 8 a.m. CST on the month's peak-load day, at a 3.20% EEA probability. The same hour sat at 1.4% in ERCOT's January 2026 outlook. Both are under the 10% low-risk line, and ERCOT did not give a reason for the change.
• Wholesale-indexed plans, the Griddy-style product behind four- and five-figure bills during Winter Storm Uri, have been illegal for Texas residential customers since September 1, 2021 under PURA Section 39.110.
• A fixed-rate plan's price can't change during the term because of a storm. Texas law does let it move when TDU delivery charges, ERCOT administrative fees, or laws change.
• When a county's previous-day high did not exceed 32 degrees Fahrenheit and the forecast holds at or below that level for 24 hours, a Texas retail electric provider can't authorize a disconnection for nonpayment there, under 16 TAC Section 25.483(j).

What did ERCOT's January 2027 outlook say?

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:

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.

What did ERCOT's December 2026 outlook say?

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:

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."

What does a 2.95% chance of an Energy Emergency Alert mean?

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.

Will Texas have rolling blackouts this winter?

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.

How do December 2026 and January 2027 compare with past winter outlooks?

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.

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.

Why is winter grid risk highest in the morning?

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.

Can a Texas winter storm raise your electric bill?

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: which bill lines can a storm change?

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).

The pattern is simple. Price protection depends on your plan type, but usage protection depends on you.

Does a fixed-rate plan protect you from a winter price spike?

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.

Can a variable-rate plan go up after a winter storm?

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.

Are Griddy-style wholesale-indexed plans still legal in Texas?

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.

Why does usage matter more than price in a cold snap?

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.

What changed on the Texas power grid since Winter Storm Uri?

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.

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.

What protects you during extreme cold in Texas?

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:

1. The deferred payment plan is on request. You have to ask your provider for it, and it covers bills that become due during the weather emergency. It spreads the bill out. It does not forgive it.
2. Prepaid service has a matching rule. Section 25.498 uses the same extreme weather definition and bars a prepaid disconnection from starting during an extreme weather emergency in that county.
3. The rule is enforced. In Docket No. 56560, the PUCT approved a $91,500 administrative penalty against a retail provider that authorized disconnections for 113 customers in counties under extreme weather emergencies in the summer of 2023. The utilities did not complete any of them.

If a bill dispute comes up later, the guide to disputing an electric bill in Texas walks through the PUCT complaint process.

Who qualifies for a critical care designation?

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.

How do you check Texas power grid status during a winter storm?

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.

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.

What is an ERCOT Weather Watch?

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.

What should Texas households do before winter?

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:

1. Find your contract end date. Under Section 39.112(g), every bill shows it in bold, underlined text. Your provider must send at least three written expiration notices in the last third of your contract, and for contracts longer than four months the final notice comes at least 30 days before it ends. The guide on the best time to renew an electricity contract in Texas covers the timing.
2. Read your EFL. Confirm whether your plan is fixed or variable, what the base charge is, and how TDU charges pass through.
3. Pull last winter's usage. Download December through February from Smart Meter Texas and note your highest month.
4. Choose fixed or variable on purpose. If you are deciding between Ambit Energy's Lone Star Classic (fixed) and Lone Star Flex (variable), compare the live EFLs for your ZIP code.
5. Sign up for ERCOT alerts. Register for TXANS and Energy Emergency Alert notifications, and download the ERCOT app.
6. Start any critical care application early. If someone in your home relies on electric medical equipment, get the PUCT form to your physician now.
7. Remember the 32-degree rule. If a bill comes due during an extreme weather emergency and you need time, ask your provider for a deferred payment plan.

For background on how providers, utilities and ERCOT fit together, see how Texas deregulated electricity works.

Frequently asked questions

Is the Texas power grid ready for a winter storm in December 2026?

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.

What does ERCOT's January 2027 outlook say about grid risk?

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.

Can my electric company raise my fixed rate because of a winter storm?

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.

Can my electricity be shut off for nonpayment when it's below freezing in Texas?

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.

What is an ERCOT Energy Emergency Alert?

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.

When does ERCOT update its winter outlook?

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.

• DCRF final order, no bill change: The Public Utility Commission of Texas (PUCT) filed its final order in Docket No. 59981 on November 5, 2026. The final residential DCRF is 0.6137 cents per kWh (as of November 9, 2026, in CenterPoint's compliance tariff), identical to the interim rate that has applied to meters read since September 30, so nothing changes on your bill.
• TEEEF final order, no bill change: The same day, the PUCT filed its final order in Docket No. 57980. The residential TEEEF stays at 0.0742 cents per kWh, the interim rate effective August 15, 2026, and the order says no refund or surcharge is needed.
• TC5 refund credit ends November 13: In a November 3, 2026 compliance filing (PUCT Tariff Control No. 60469), CenterPoint set its Rider TC5 Refund credit of 0.0278 cents per kWh to zero effective November 13, 2026, because it estimates the credit will have finished returning about $14.9 million in overcollected transition charges by then. The per-kWh delivery charge goes from 6.5333 to 6.5611 cents, and the delivery cost at 1,000 kWh goes from $70.23 to $70.51.

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.

Key Takeaways

• Current rate: CenterPoint's residential delivery charge is $4.90 a month plus 6.5611 cents per kWh effective November 13, 2026, per CenterPoint's November 3 compliance filing. Before that, meters read from September 30 paid 6.5333 cents (as of November 1, 2026, per the PUCT's rate summary).
• August 15 dip: The per-kWh charge fell 3.2 percent, from 5.1461 to 4.9811 cents per kWh (effective August 15, 2026), after a settlement removed some mobile generators from CenterPoint's emergency-generation rider.
• September 1 jump: The charge rose about 28.7 percent to 6.4130 cents per kWh (effective September 1, 2026). The Transmission Cost Recovery Factor alone rose 1.4639 cents, from 1.6173 to 3.0812 cents per kWh, under PUCT Docket No. 59825.
• September 30 step: The DCRF went from 0.4934 to 0.6137 cents per kWh (effective September 30, 2026). That is a net increase of 0.1203 cents, about $1.20 a month at 1,000 kWh. The PUCT's November 5, 2026 final order kept that 0.6137-cent residential rate.
• November 13 step: CenterPoint's TC5 refund credit of 0.0278 cents per kWh ends (effective November 13, 2026). That raises the total to 6.5611 cents per kWh, about 28 cents a month at 1,000 kWh. The final TEEEF order filed November 5 left that rider unchanged at 0.0742 cents.
• How Houston compares: At 1,000 kWh, CenterPoint's $70.51 delivery cost from November 13 is higher than AEP Texas Central ($60.15) and AEP Texas North ($59.00), and lower than Oncor ($72.73 since Oncor's October 4, 2026 increase) and TNMP ($85.27), per the PUCT's November 1, 2026 rate summary.

What are CenterPoint delivery charges?

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: which rate was in effect when?

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.

To use the timeline on your own bill, run a three-step read-date check:

1. Find the meter read date. It is printed on your bill with the service period, usually as the last day of the billing cycle.
2. Match it to the timeline. The September 30 change is tied to the meter read date by the PUCT's interim order, so a read on September 29 uses 6.4130 cents and a read on September 30 uses 6.5333 cents.
3. Do the math. If your bill lists delivery charges as their own line, multiply your kWh by that row's per-kWh charge and add $4.90. If the numbers don't line up and your provider can't explain the gap, our guide to disputing an electric bill in Texas walks through the next steps.

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.

What actually changed on August 15?

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.

Why did CenterPoint delivery charges jump on September 1?

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.

What does the September 30 change do?

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:

• July 17, 2026: CenterPoint files its application to amend the DCRF.
• August 14, 2026: Order No. 6 approves interim rates for meters read on or after September 30, 2026, subject to reconciliation against the final tariff.
• September 3, 2026: Commission Staff files its final recommendation.
• October 1, 2026: CenterPoint files a Stipulation and Settlement Agreement signed by Commission Staff, the City of Houston and the Gulf Coast Coalition of Cities. The Texas Coast Utilities Coalition, Texas Industrial Energy Consumers and the Texas REP Coalition are unopposed.
• November 5, 2026: The Commission files its final order. It approves the rates in CenterPoint's application as final and finds they are identical to the interim rates, so no further notice to retail providers is required.
• November 9, 2026: CenterPoint files its tariff in compliance with the final order, listing the residential DCRF at $0.006137 per kWh for meter reads on and after September 30, 2026.

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.

What does this do to your Houston bill?

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:

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:

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.

Does a fixed-rate plan protect you from CenterPoint delivery charge 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.

What can Houston households do now?

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:

• Re-check your plan against the current market. The September 1 delivery increase means plan prices that include delivery are being repriced too. Our guide to the six Electricity Facts Label numbers walks through the fields to compare before signing.
• Match your plan to your usage. A free-nights plan can work for a household that runs the dishwasher, laundry and pool pump after 8 p.m., while a straight fixed rate is usually the safer choice for a daytime-heavy home. We break down the trade-offs in our comparison of TXU Free Nights and Weekends vs Ambit Free and Clear Nights.
• Watch the dates on your next bill. The higher DCRF has applied to meter reads since September 30, and the TC5 credit ends November 13, 2026. At 1,000 kWh, the end of that credit adds about 28 cents a month. For how the Texas delivery utilities compare line by line, see our TDU delivery charges explainer for Oncor, CenterPoint, AEP and TNMP.
• Trim peak usage. Because the delivery charge is mostly per kWh, every kWh you avoid saves about 6.6 cents in delivery alone at CenterPoint's rate effective November 13, 2026, before your supply rate.

Why are delivery charges rising in the first place?

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.

Frequently asked questions

Are CenterPoint delivery charges the same on every Houston electricity plan?

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.

When will my bill reflect the September 30 CenterPoint DCRF change?

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.

Did CenterPoint delivery charges fall in August 2026?

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.

What is PUCT Docket 59981?

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.

Did the November 5 final orders change my bill?

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.

Why does the CenterPoint delivery charge go up on November 13, 2026?

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.

Can I switch providers to avoid the September 30 delivery charge increase?

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.

Key takeaways

• As of October 8, 2026, the City of Lubbock tariff moves LP&L's residential delivery charge on November 1, 2026 to a $2.50 monthly base charge plus 6.008 cents per kWh, replacing 6.312 cents per kWh with no base charge.
• The break-even point is 822 kWh a month, or 9,868 kWh a year. Below it you pay more for delivery. Above it you pay less.
• The Lubbock City Council approved the new rates 5-2 on September 8, 2026. LP&L's cost study showed a $6.1 million shortfall, and staff chose to restructure rates instead of raising them.
• Switching providers does not avoid the base charge. Retail electric providers pass LP&L delivery charges through at cost.
• At 1,000 kWh, Lubbock's new delivery cost of $62.58 sits below Oncor ($72.73) and CenterPoint ($69.03) and above AEP Texas North ($58.99), as of October 8, 2026.

What exactly changes on Lubbock electric bills on 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.

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.

Who pays more and who pays less under LP&L's new base charge?

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.

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.

Why do some savings estimates come out too high?

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: how do you find your own number?

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.

1. Add up 12 months of kWh. Use the "kWh used" or "usage" line on each bill.
2. Compare the total with 9,868 kWh. That is the annual break-even, 822 kWh times 12. Above it you save. Below it you pay more.
3. Calculate your exact yearly change. Take $30.00 (twelve $2.50 base charges) and subtract your annual kWh times $0.00304. A household that used 14,000 kWh last year gets $30.00 minus $42.56, a $12.56 reduction in delivery charges for the year.
4. Check your Electricity Facts Label. Find the lines for "Lubbock Power & Light Monthly Charges" and "Lubbock Power & Light Delivery Charges" on your plan's Electricity Facts Label to confirm your plan passes LP&L charges through.

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.

Why did Lubbock Power & Light add a base charge?

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.

Who approved the new rates, and who voted no?

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.

How do LP&L delivery charges compare with Oncor, CenterPoint, AEP Texas and TNMP?

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.

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.

How have Lubbock delivery charges changed since retail choice began?

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.

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.

When will the new LP&L charge show up on your bill?

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.

Can switching electricity providers help you avoid the LP&L base charge?

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.

What should low-usage households watch for now?

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.

Does the new LP&L base charge apply to every Lubbock address?

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.

What comes next for Lubbock electricity rates in 2027?

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.

Frequently asked questions

How much is LP&L's new base charge?

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.

Will my Lubbock electric bill go up in November 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.

Who sets LP&L delivery rates?

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.

Can I avoid the LP&L base charge by switching providers?

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.

What are the transition charge and franchise fee on a Lubbock bill?

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.

To start an electric bill dispute in Texas, contact your retail electric provider first and put the dispute in writing. Your provider has 21 days to investigate and report back. If that does not fix it, file a complaint with the Public Utility Commission of Texas (PUCT). The one big change: starting October 21, 2026, the PUCT no longer offers a formal complaint against your provider.

On October 1, 2026, the PUCT filed its order adopting amendments to 16 TAC §25.485 in Project No. 59557, the "Streamlined Complaint Process" rulemaking. The Texas Register acknowledgment filed the same day lists October 21, 2026 as the effective date. Most of the protections Texas households rely on during a billing dispute did not move at all. This guide separates what changed from what did not, then walks through the dispute one step at a time.

Key takeaways

• On October 1, 2026, the PUCT adopted a rule in Project No. 59557, effective October 21, 2026, that ends formal, docketed complaints against retail electric providers. One investigation by the PUCT Office of Consumer Assistance becomes the only PUCT complaint path.
• Your provider still has 21 days to investigate your complaint, 10 business days to finish a supervisory review, and 15 days to answer a complaint the PUCT forwards to it. None of those deadlines is new.
• Your provider cannot disconnect you over disputed charges until it or the PUCT decides whether they are accurate and tells you. While a PUCT complaint is pending, it also cannot send the disputed amount to collections or report it to a credit bureau. You still owe the undisputed portion.
• Billing was the largest complaint category against Texas retail electric providers from April 1 to September 30, 2026: 1,107 of 2,254 complaints, or 49.1 percent, according to PUCT complaint statistics.
• If you still disagree after the PUCT closes your complaint, the next stop is a Texas court. Justice courts hear civil claims of up to $20,000.

What changed in the PUCT complaint process?

The PUCT eliminated the formal complaint for customers of retail electric providers. Starting October 21, 2026, a complaint to the PUCT about your provider gets one investigation by the Office of Consumer Assistance (OCA). It ends with a closing letter. If the OCA finds a possible rule violation, the complaint goes to the Division of Compliance and Enforcement (DICE).

Before this change, the PUCT process had two tracks. You filed an informal complaint first. If you were not satisfied, the old rule let you "file a formal complaint with the commission within two years of the date on which the commission closes the informal complaint." That formal complaint was a docketed legal case, according to the rule text EnergyChoiceMatters reported in April 2026. That second track is what is gone. The amended rule also drops the word "informal" from the process.

Three practical changes follow from the adoption order:

1. One PUCT investigation instead of two tracks. The OCA, formerly called the Consumer Protection Division, investigates your complaint. It also tries to help you and your provider reach a resolution.
2. The closing letter ends the PUCT process. The letter summarizes the complaint, any remedies taken, and whether the documents suggest a rule violation. PUCT staff wrote in the recommended order, "Critically, this is not a formal legal decision made by the commission." The letter does exhaust your administrative remedies, which lets you go to court sooner.
3. Enforcement can act for everyone affected. DICE can find the same billing error across a provider's whole customer base. It can also seek escalating penalties for repeat violations.

PUCT staff described the old formal track as "protracted and resource intensive contested cases, often involving claims requesting relief the commission is incapable of granting." The adoption order's stated goal: "the commission expects the amended process to produce significantly better results for consumers and to be significantly more user friendly."

Not everyone agreed. The Office of Public Utility Counsel (OPUC) is the state agency that represents residential and small commercial utility customers. In June 19, 2026 comments signed by Chief Executive and Public Counsel Benjamin Barkley, OPUC argued that "to the extent the PFP relies upon Senate Bill (SB) 790 as the basis for the extensive changes made to the Commission's complaint process, this interpretation should be rejected as it greatly exceeds the bill's rulemaking scope." (PFP is the proposal for publication.)

Paul Ring, who covers Texas retail electricity for EnergyChoiceMatters, summed up the outcome on October 2, 2026: "Essentially, the final rule makes a process similar to the prior informal complaint process the only PUC complaint process available to REP customers."

What stays the same when you dispute an electric bill?

Almost every protection a household uses in an electric bill dispute predates this rule and survives it. The provider deadlines, the shutoff protection for the disputed amount, and the ban on forced arbitration for residential customers all stay in place. None of them is a 2026 change, and some have been in the rule for years.

Sources: 16 TAC §25.485, 16 TAC §25.483 and the Project No. 59557 adoption order.

One detail is worth knowing before you file. OPUC asked the commission to state that the customer's reading of the disputed amount controls, and the commission declined. Write down the exact dollar amount you dispute, and put it in every message, so there is no argument later about which portion is protected.

How do you dispute an electric bill in Texas, step by step?

The 21-10-15 Dispute Ladder is a five-step sequence for an electric bill dispute, named for the three deadlines in 16 TAC §25.485 that run the process: 21 days for your provider's investigation, 10 business days for supervisory review, and 15 days for your provider to answer the PUCT. Each rung has its own clock. You climb to the next one only when the rung below runs out or fails.

1. Rung 0, diagnose before you dispute. Pull the bill, your Electricity Facts Label, and your usage history on Smart Meter Texas. Decide whether the problem is the price, the usage, or a fee, then write down the exact dollar amount you dispute.
2. Rung 1, write to your provider (21 days). Call the customer service number on your bill, then follow up by email or letter so there is a dated record. Include your account number, ESI ID, billing period, disputed amount, reason, and the fix you want. Your provider must investigate and tell you the results within 21 days. Pay the undisputed portion by the due date.
3. Rung 2, ask for supervisory review (10 business days). If you do not accept the answer, ask whether the provider offers supervisory review. If it does, a decision is due within 10 business days. If it does not, the provider must tell you how to complain to the PUCT.
4. Rung 3, file with the PUCT (15 days). File online, by phone at 1-888-782-8477, or by mail to P.O. Box 13326, Austin, TX 78711-3326. The PUCT forwards your complaint to the provider, which has 15 days to respond. The OCA then sends you and the provider a closing letter.
5. Rung 4, go to court if you still disagree. The closing letter exhausts your PUCT remedies. A Texas justice court hears civil claims of up to $20,000.

The provider-first order is what the PUCT asks for, not a legal precondition. The PUCT complaint page tells customers to contact their provider first "and allow them to investigate your complaint." The Texas REP Coalition, a group of retail electric providers, asked the commission to make that step mandatory "unless the complaint is related to a disconnection of service." The commission declined. You can go straight to the PUCT when you need to, especially if a disconnection notice is on the way.

These steps apply to every retail electric provider in the competitive market, Ambit Energy included.

How do you check whether the bill itself is wrong?

Most electric bill disputes come down to one of three things: the price charged, the kilowatt-hours billed, or a fee. Check each one against a document you can point to.

• Price. Compare the energy charge and base charge on your bill with your Electricity Facts Label, the PUCT-required disclosure for your plan. The line-by-line guide to reading a Texas electricity bill shows where each charge appears.
• Usage. Log in to Smart Meter Texas, the portal run by the state's transmission and distribution utilities. Compare the kWh on your bill with your meter's 15-minute interval data and daily reads. Smart Meter Texas keeps up to two years of that history. If your bill shows an estimated read, ask for the actual read.
• Delivery charges. TDU delivery charges pass through from your local utility and are the same on every plan in a service area. A rate change from Oncor, CenterPoint Energy, AEP Texas or TNMP can raise a bill without any billing error.
• Fees and credits. Look for late fees, a usage-based bill credit you expected but did not get, or a charge you never authorized.

For context, the average Texas home used 1,096 kWh a month in 2024, with an average monthly bill of $163.72, according to the U.S. Energy Information Administration. A bill far above your own history deserves a usage check before anything else.

Can you ask for a meter test in Texas?

Yes. Under 16 TAC §25.124, the electric utility must test your meter when you ask, ordinarily at no charge. If you ask again within four years of a prior requested test and the meter meets ANSI accuracy standards, the utility can charge its tariffed testing fee. If the meter fails, the usage data is corrected and adjusted bills follow. In the competitive market, start the request with your retail electric provider, which works with your local utility.

Can your electricity be shut off while you dispute a bill?

Not over the amount in dispute. Under 16 TAC §25.483(e)(5), a provider cannot authorize a disconnection for failure to pay disputed charges, except the amount not under dispute, until the provider or the PUCT has decided whether the charges are accurate and notified you. You still have to pay the undisputed portion. After proper notice, the provider can disconnect you for failing to pay that part.

A pending PUCT complaint adds a second layer. Under 16 TAC §25.485, while the PUCT complaint is open, your provider cannot pursue collection, disconnect service, or report delinquency to a credit agency over the disputed portion. The timing matters here. The first protection runs until your provider makes its determination and tells you. If the provider rules against you and you still disagree, file with the PUCT right away so the broader protection covers you.

What happens after you file a complaint with the PUCT?

A PUCT Consumer Assistance Specialist reviews your complaint and sends it to your provider. The provider has 15 days to respond. Either side may be asked for more information. The OCA then sends you and the provider a letter with its findings, which can recommend corrective action. The PUCT complaint page adds: "Regardless of the findings, your complaint will then be reviewed by the PUCT's Division of Enforcement and Compliance to determine if further action is warranted." That is the same division this guide calls DICE, the Division of Compliance and Enforcement.

The new rule builds a more direct pipeline. When the OCA identifies a possible violation, it refers the complaint to DICE. PUCT staff gave an example in the recommended order: one customer seeking a refund for a billing error could lead to an investigation that "might uncover dozens or hundreds of consumers that experienced that same error."

The PUCT complaint process does return money to households. In the second quarter of fiscal year 2025, December 2024 through February 2025, the PUCT reported $95,196 in refunds and bill credits for electric customers, out of $105,906 across all utility types, according to its quarterly release. The agency concluded 8,545 complaints in fiscal year 2025, according to its performance measures report.

What if you still disagree after the PUCT closes your complaint?

You go to court. After October 21, 2026, the OCA's closing letter concludes the PUCT process and exhausts your administrative remedy. You can file a civil case without first litigating a formal complaint at the commission. PUCT Chairman Thomas Gleeson filed a memo on September 30, 2026 asking the commission to clarify how exhaustion works. The adopted rule states that the OCA's closure of a complaint concludes the process and exhausts the administrative remedy, after which you may pursue remedies in court.

For most household billing disputes, that court is a Texas justice court, which hears civil cases with up to $20,000 in controversy under Texas Government Code §27.031. The $20,000 limit took effect September 1, 2020. Bring the closing letter, your bills, your written complaints, and your Smart Meter Texas data.

What are Texans complaining about most?

Billing. From April 1 to September 30, 2026, the PUCT logged 2,254 complaints against 58 retail electric providers, and 1,107 of them, 49.1 percent, were billing complaints. The table below totals the PUCT's customer complaint statistics across all providers, as published on October 6, 2026.

Shares may not sum to exactly 100 percent because of rounding. Billing complaints outnumbered the next-largest category by more than 2.5 to 1. Most billing disputes trace back to one of three documents: the Electricity Facts Label, the meter data, or a TDU charge. That is why Rung 0 of the ladder matters most.

What if your provider overbilled or underbilled you?

If you were overbilled, 16 TAC §25.480 requires your provider to correct the overbilling for the entire period. If it does not fix the error within three billing cycles, it owes you interest at the commission-set rate.

If you were underbilled, your provider generally can charge you only for underbilling billed within 180 days of the bill in which it happened. Exceptions apply for meter tampering and certain utility meter errors. When the underbilled amount is $50 or more, the provider must offer a deferred payment plan covering the same length of time as the underbilling, and it generally cannot charge interest on that amount.

Can your electricity contract force you into arbitration?

No, not as a residential customer. 16 TAC §25.485 prohibits terms of service that require residential and small commercial customers to agree to alternative dispute resolution. The Texas REP Coalition asked the commission to let customers agree to arbitration for disputes that would otherwise go to court. PUCT staff responded that these provisions "were initially adopted as important customer protections that were not noticed for amendment in this project," and the commission left them unchanged.

Does the PUCT complaint process cover every Texan?

No. These rules cover customers of retail electric providers in the competitive ERCOT market, served by Oncor, CenterPoint Energy, AEP Texas, TNMP and similar utilities. If your power comes from a city-owned utility or an electric cooperative, start with that utility directly. The PUCT keeps a "Utilities Not Regulated" page listing the providers it does not oversee. Outages and meter hardware belong to your local utility, not your retail provider, as the guide to how Texas deregulated electricity works explains.

Frequently asked questions

How long does an electric company have to respond to a complaint in Texas?

Your retail electric provider has 21 days to investigate a complaint you make directly and report the results. If the PUCT forwards a complaint, the provider has 15 days to respond. A supervisory review, where offered, must be decided within 10 business days.

Can you still file a formal complaint with the PUCT?

Not against a retail electric provider once the rule takes effect on October 21, 2026. The PUCT Office of Consumer Assistance investigation is the only PUCT path, and individual remedies beyond it go to court.

Do you have to pay your electric bill while you dispute it?

Pay the undisputed portion by the due date. Your provider cannot disconnect you over the disputed charges until it or the PUCT decides whether they are accurate and tells you. While a PUCT complaint is pending, it also cannot send the disputed amount to collections or report it to a credit bureau.

Where do you file a complaint against an electric company in Texas?

File with the PUCT through its online electricity complaint form, by phone at 1-888-782-8477 (512-936-7120 in Austin), or by mail at P.O. Box 13326, Austin, TX 78711-3326. Contact your provider first unless a disconnection is imminent.

What is the fastest way to prove a usage error?

Download your 15-minute interval data from Smart Meter Texas for the exact billing period. Compare the total kWh with the kWh on your bill. A gap between the two is the strongest single piece of evidence you can attach to a complaint.

A billing error is frustrating, but the Texas process is built around documents and deadlines. Keep every bill, every message, and your meter data, and the 21-10-15 Dispute Ladder will take you from the first phone call to a closing letter, and past it if you need to.

Plan details and rates subject to change. Rule dates, deadlines and complaint figures in this article are as of October 6, 2026, from the PUCT sources linked above.

Direct Energy free nights, sold as Twelve Hour Power, charges nothing for electricity used from 9 p.m. to 9 a.m. The catch is on the Electricity Facts Label. As of September 29, 2026, the 12-month versions charge 34.5 to 35.4 cents per kWh for daytime energy on Direct Energy's current EFLs (dated August 1 and September 1, 2026), or roughly 40.5 to 41.8 cents once delivery is added.

That daytime price is the whole review. Twelve Hour Power can beat a fixed-rate plan, but only for a home that moves well over half of its usage into the free window, and the EFL's own averages assume just 45%.

Key takeaways

• Direct Energy Twelve Hour Power makes 9 p.m. to 9 a.m. free every day, and its EFLs state that no TDU delivery charges are billed during that Designated Free Period.
• As of August 1, 2026, the 12-month daytime energy charge is 34.4999 cents per kWh in Oncor. As of September 1, 2026, it is 35.4314 cents in CenterPoint and 34.8598 cents in AEP Texas Central.
• Longer terms charge far less per daytime kWh. As of August 1, 2026, the Oncor 18-month Auto Pay plan charges 25.5533 cents and the 24-month plan charges 27.6081 cents.
• Every average price on these EFLs assumes 45% of your usage lands in the free window. At that share, the Oncor 12-month plan averages 23.5 cents per kWh at 1,000 kWh as of August 1, 2026, against the 15.88-cent Texas residential average the U.S. Energy Information Administration (EIA) reported for July 2026.
• Measured against that 15.88-cent benchmark, the Oncor 12-month plan breaks even only when about 64% of your usage falls between 9 p.m. and 9 a.m.

What is Direct Energy's free nights plan?

Direct Energy's free nights plan is Twelve Hour Power, a fixed-rate time-of-use electricity plan that charges no energy fee for anything used from 9 p.m. to 9 a.m. and one fixed energy charge for everything used from 9 a.m. to 9 p.m. Direct Energy's free nights page advertises "12 hours of free power" and labels the 24-month version its most popular plan.

Direct Energy is a Texas retail electric provider owned by NRG Energy. Its current Twelve Hour Power EFLs cover 12-month, 18-month and 24-month terms, and some versions add an Auto Pay discount. The EFL calls the free hours the "Designated Free Period."

Twelve Hour Power has one real structural advantage over many free nights plans. The EFL states: "All delivery charges will be prorated and the customer will not be billed for any TDU delivery charges during the Designated Free Period." A nighttime kWh on this plan genuinely costs nothing, not the roughly 6 cents of delivery that some rival free nights plans still bill overnight.

What does the Direct Energy EFL charge after the free window?

As of September 29, 2026, Twelve Hour Power charges a daytime energy rate between 21.8009 and 35.4314 cents per kWh across the six current EFLs reviewed below, depending on the utility and the contract term, plus a $9.95 monthly base charge. Because delivery is billed only on daytime usage, the true price of a daytime kWh is the energy charge plus the utility's per-kWh delivery rate.

Every plan in the table also carries the $9.95 base charge plus the utility's fixed monthly delivery charge ($4.06 in Oncor, $4.90 in CenterPoint, $3.24 in AEP Texas Central), which the EFL's pricing formula prorates to the paid share of usage. Offers change by address and by date, so pull the EFL for your own ZIP code before relying on any row. The Oncor 12-month figures come from the Twelve Hour Power 12 Oncor EFL.

For context, as of July 1, 2024, Dallas Morning News Watchdog columnist Dave Lieber wrote that once the free period ends on Texas free plans, "the kWh rates can be as high as 21 to 29 cents per kWh." When he found a 28.8-cent daytime rate on a competing plan in that column, he wrote: "I have never seen a kWh price that high." The 12-month Twelve Hour Power daytime charge in August and September 2026 sits about 6 cents above that figure before delivery.

Does Direct Energy charge delivery fees during the free hours?

No. Every Twelve Hour Power EFL reviewed here says the customer "will not be billed for any TDU delivery charges during the Designated Free Period," and the EFL's pricing formula applies delivery to 55% of monthly usage, the daytime share it assumes. The free window truly costs nothing, which is a genuine difference from plans that bill delivery around the clock.

That delivery cost does not disappear, though. It moves into the daytime. Watt Owl's March 2026 analysis of two Texas homes, with rates as of February 22, 2026, found that on the four free-hours plans it tested, "free" electricity still cost about 6 cents per kWh in Oncor delivery. It also noted that the plans which waive delivery see "their peak rates jump above 20¢/kWh" (as of February 22, 2026). Twelve Hour Power follows that pattern. Each daytime kWh carries the full 6.0295-cent Oncor delivery rate on top of the 34.4999-cent energy charge, which is how the all-in daytime cost on the 12-month Oncor plan reaches 40.53 cents as of August 1, 2026.

How much more does the 12-month plan charge per daytime kWh?

The 12-month Twelve Hour Power plan charges 8.9466 cents more per daytime kWh than the 18-month Auto Pay version in Oncor (34.4999 versus 25.5533 cents, EFLs dated August 1, 2026). In CenterPoint the gap widens to 13.6305 cents (35.4314 versus 21.8009 cents, September 1, 2026). The shorter commitment carries a steep premium, and the EFLs do not say why.

In dollars, a home using 1,000 kWh a month with 45% in the free window buys 550 daytime kWh. On those 550 kWh, the Oncor 12-month energy charge costs $49.21 more per month than the 18-month plan before any Auto Pay discount, or about $590 a year.

Two details complicate the longer terms. First, the early termination fee rises to $180 on the 18-month plan and $295 on the 24-month plan, compared with $150 on the 12-month plan. Second, the Auto Pay price only applies while you are enrolled: the EFL says "if you are not enrolled in the automatic payment option, you will not receive the discount." Oddly, the 24-month Oncor plan (27.6081 cents) charges more per daytime kWh than the 18-month Auto Pay plan (25.5533 cents) even before the discount, so the longest term is not the cheapest one on these labels.

What does the EFL's "45% free" assumption mean for your bill?

The 45% assumption means the advertised average prices only hold if 45% of your usage falls between 9 p.m. and 9 a.m. Below that share, your real bill runs higher than the EFL's averages. The EFL puts it this way: "Average price calculations are based on a total consumption profile over a 12 month period assuming 45% of consumption occurs during the Designated Free Period." Texas rule 16 TAC 25.475 requires the average price at 500, 1,000 and 2,000 kWh, but the 45% share is Direct Energy's assumption, not a measurement of your home.

The table below models a 1,000 kWh month in Oncor at different free-window shares, using the EFL line items as of August 1, 2026 (daytime energy charge, $9.95 base charge, and delivery prorated to daytime use). The last column is 1,000 kWh at 15.88 cents, the Texas residential average price in EIA's Electric Power Monthly for July 2026.

These are modeled bills that exclude taxes and the small PUC assessment, which is why the 45% row lands within a few cents of the EFL's own 1,000 kWh averages (23.5, 18.3 and 19.7 cents). At the EFL's 45% assumption, the 12-month plan costs about $76 more per month than paying the July 2026 state average, or roughly $915 over a year.

How much of your usage has to shift to break even?

Break-even on Twelve Hour Power falls between about 43% and 72% of monthly usage in the free window, depending on the term, the utility and the fixed rate you compare against. The break-even share is the point where the plan's daytime cost (daytime usage times the all-in daytime kWh price, plus the prorated delivery charge and the $9.95 base charge) equals the fixed plan's bill.

The 13-cent column approximates today's cheapest fixed plans. Clear Energy Facts' Twelve Hour Power review, updated September 28, 2026, compared the plan against the top 20 true fixed-rate plans, led by a 13.2-cent plan at 1,000 kWh as of that date, and concluded: "55% or more is what you need to make this plan worth it, and this is not easy to achieve." The 18-month and 24-month rows above land in that same range, while every 12-month row sits well above it.

Can a real Texas household shift that much usage?

The limited real-usage data available suggests most households cannot. Watt Owl ran 15-minute Smart Meter Texas data from two Dallas-Fort Worth homes and found 22.4% and 15.6% of their usage between 11 p.m. and 6 a.m. Its widest window, 8 p.m. to 8 a.m., which is the closest it tested to Direct Energy's 9-to-9 hours, captured 41.2% and 37.2%. Both homes fall short of the EFL's 45% assumption, let alone a 55% to 64% break-even. Two homes are a small sample, which is exactly why your own meter data matters more than any average.

Texas afternoons are the first obstacle. ERCOT's hourly peak load reached a record 91.1 gigawatts on July 22, 2026, and EIA reports the peak occurred at 6:00 p.m. Central, squarely inside Twelve Hour Power's paid window. Afternoon air conditioning cannot move to midnight, and Watt Owl found the free-period share "barely changes by season" in its data.

Habits are the second obstacle. Rebecca Bridges of ElectricityPlans told the Dallas Morning News: "They think they're going to beat the price advertised on the Electricity Facts Label. But people's habits tend to be pretty ingrained. Everybody wants something for free." Her first piece of advice was simpler: "Make sure you understand what you're buying."

How do you test Direct Energy free nights against your own usage?

The 9-to-9 Daytime Kilowatt Test is a four-step check that turns a Twelve Hour Power EFL into a yes or no for your specific home before you sign.

1. Find the daytime energy charge. On the EFL for your address, read the line "Daily beginning at 9:00 AM ending at 9:00 PM."
2. Add the delivery rate. Add your utility's per-kWh delivery charge from the same EFL. The sum is the all-in price of every daytime kWh, for example 40.53 cents on the Oncor 12-month plan as of August 1, 2026.
3. Measure your free-window share. Download 15-minute interval data from Smart Meter Texas for the last 12 months, then divide the kWh used between 9 p.m. and 9 a.m. by your total kWh. Use a full year, because summer afternoons are where this plan wins or loses.
4. Compare with break-even and keep a cushion. Check your share against the break-even table for your plan and your best fixed-rate alternative. If your share does not clear break-even by at least 5 percentage points, a fixed-rate plan is the safer choice, because heat waves, sick days and work-from-home weeks all push usage into daylight.

The Real Cost of Free Nights Plans guide walks through reading a free nights EFL line by line, and the free nights plan calculator runs the same math for other plans.

Who is Direct Energy free nights a good fit for?

Twelve Hour Power fits homes whose electricity use is naturally nocturnal or easy to schedule: night-shift households, electric vehicle owners who charge overnight, and some homes with rooftop solar.

• Night-shift households. Watt Owl names people who sleep through the day as the group that "might get there" on free nights plans.
• EV owners who charge after 9 p.m. EnergySage estimates the average EV driver uses 408 kWh a month on home charging. Add that load to a 1,000 kWh home that already runs 40% of its usage at night, and the free share rises to about 57%, above break-even for the Oncor 18-month and 24-month plans against the 15.88-cent average.
• Some solar homes. Clear Energy Facts notes that for solar owners "the math is different, and this is usually their favorite plan," because panels cover much of the daytime load. Confirm how Direct Energy credits any electricity you export before switching, since this review covers only the consumption charges.

The poor fits are work-from-home households, homes that run air conditioning hard all afternoon, and anyone considering the 12-month plan without a year of data showing 60% or more of usage at night.

What fees and contract terms should you check before signing?

Beyond the daytime rate, five terms on the Twelve Hour Power EFL and plan page decide what the plan really costs.

• Base charge: $9.95 per month on every EFL reviewed here, billed whether you use electricity or not.
• Early termination fee: $150 on the 12-month plan, $180 on the 18-month plan and $295 on the 24-month plan, each applying through the end of the term. The 12-month EFLs say the fee does not apply if you move and provide a forwarding address and other requested evidence of the move. Look for the same move language on the 18-month and 24-month EFLs before you sign.
• Auto Pay condition: the 0.5-cent discount applies to the paid energy charge only while you are enrolled in automatic payment.
• 90 Day Satisfaction Guarantee: Direct Energy's plan page says you can change to a qualifying Direct Energy plan in the first 90 days with no fee. As written, it covers a move to another Direct Energy plan.
• Price dates: the EFLs reviewed here are dated August 1 and September 1, 2026. Rates on new EFLs can differ, so re-check the label on the day you enroll.

How does Direct Energy free nights compare with Ambit Free and Clear Nights?

Ambit Free and Clear Nights offers free electricity from 9:00 p.m. to 5:59 a.m., seven days a week, according to Ambit Energy's launch announcement. That is a nine-hour window against Twelve Hour Power's twelve hours. A longer window captures more usage, so the fair comparison is not window length alone but the all-in daytime kWh price each EFL charges against the free share each window captures in your home.

Run the same 9-to-9 Daytime Kilowatt Test with a 9 p.m. to 6 a.m. window for Ambit, using the current Free and Clear Nights EFL for your address, and check whether each EFL bills delivery during the free hours, because that changes the all-in math. The TXU Free Nights and Weekends vs Ambit Free and Clear Nights break-even comparison shows that calculation step by step. If the test says your home cannot shift enough usage to night, a fixed-rate plan avoids the daytime premium entirely, and every Ambit Energy plan compared for 2026 lays out those options side by side.

Frequently asked questions

What are Direct Energy's free night hours?

Direct Energy's Twelve Hour Power plans make electricity free from 9 p.m. to 9 a.m. every day, per Direct Energy's free nights page and its EFLs. Usage from 9 a.m. to 9 p.m. is billed at the plan's daytime energy charge.

What is the Direct Energy free nights daytime rate?

As of August 1, 2026, the daytime energy charge is 34.4999 cents per kWh on the 12-month Oncor plan. As of September 1, 2026, it is 35.4314 cents on the 12-month CenterPoint plan and 34.8598 cents on the 12-month AEP Texas Central plan. Longer terms run lower, such as 27.6081 cents on the 24-month Oncor plan as of August 1, 2026. Add your utility's delivery rate for the all-in daytime cost.

Does Direct Energy charge TDU delivery fees at night?

No. The Twelve Hour Power EFLs state that the customer will not be billed for any TDU delivery charges during the Designated Free Period. Delivery is billed on daytime usage instead, adding about 5.8 to 6.4 cents to every daytime kWh, per the EFLs dated August 1 and September 1, 2026.

What is the Direct Energy free nights cancellation fee?

The early termination fee is $150 on the 12-month plan, $180 on the 18-month Auto Pay plan and $295 on the 24-month plan, per the EFLs dated August 1 and September 1, 2026. The 12-month EFLs waive it if you move and provide a forwarding address and proof of the move.

Is Direct Energy free nights worth it?

Direct Energy free nights is worth it only if a year of Smart Meter Texas data shows your 9 p.m. to 9 a.m. share clearly above break-even, roughly 53% to 65% against the 15.88-cent Texas average for most versions. The EFL itself assumes 45%, and at that share every version reviewed here costs more than the state average.

The bottom line

Direct Energy free nights is honest about one thing that many free plans are not: the night really is free, delivery included. The price is a daytime kWh that costs 40.5 to 41.8 cents all-in on the 12-month plans and about 28 to 34 cents on the longer terms, as of September 29, 2026. Pull your Smart Meter Texas history, run the 9-to-9 Daytime Kilowatt Test, and sign only if your own numbers clear break-even with room to spare.

Plan details and rates subject to change. The Electricity Facts Label for any plan, including every Ambit Energy plan, is available before you enroll, and it is the document to check.

The best time to renew an electricity contract in Texas is the fall shoulder window of September and October, and inside the 14 days before your current contract ends. That window opened this month with a jolt. On September 12, 2026, TexasPowerCost's daily tracker logged 27 plans withdrawn, 25 plans repriced, and only 2 new plans launched across the Houston, Dallas, and Austin-area markets in a single day. If your contract ends this fall, the shelf you shop from just changed.

Key takeaways

• On September 12, 2026, 27 Texas electricity plans were withdrawn, 25 were repriced, and 2 launched, according to TexasPowerCost. Across September 1 to 13, the tracker counted 56 withdrawals, 358 repricings, and 22 launches.
• Texas retail electric providers must send a residential contract expiration notice at least 30 days before the end date, and you can switch without an early termination fee starting 14 days before that date, per the Public Utility Commission of Texas.
• CenterPoint's per-kWh delivery charge rose 28.3 percent on September 1, 2026, from 4.999 to 6.4130 cents, according to Rhythm Energy. Delivery charges are identical on every plan, so they change your bill, not which plan wins.
• 75 percent of Texas shoppers picked contracts of 12 months or less in 2025, per ElectricityPlans, and the 12- versus 24-month spread is usually under 1 cent per kWh as of September 21, 2026, per TexasPowerCost.
• Choose Texas Power's marketplace data shows August as the cheapest month to buy, at 16.67 cents per kWh as of July 21, 2026 including delivery, and January the most expensive at 17.47 cents.

What happened to Texas electricity plans on September 12, 2026?

On September 12, 2026, retail electric providers withdrew 27 plans, repriced 25, and launched 2 across the Houston, Dallas, and Austin-area markets, according to the TexasPowerCost plan-changes tracker. Counts are by distinct plan, so one plan listed in three utility territories counts once. That was the largest single-day withdrawal count of the month to that point by a wide margin, and it included True Power's 36-month True Value plan in Dallas and Houston.

Here is how the first two weeks of September played out, day by day, per the same tracker:

Add it up and September 1 through 13 produced 56 withdrawals, 358 repricings, and 22 launches. Repricing was the daily norm. Withdrawal came in one burst. My read: providers repriced their way through the first week after the September 1 delivery-rate refresh, then cleared the plans they no longer wanted to sell into fall on September 12.

Why do retail providers pull plans in bulk in September?

Retail electric providers withdraw plans in bulk in September because the regulated delivery rates reset on September 1 and the summer's wholesale costs settle at the same time, so every Electricity Facts Label has to be re-issued anyway. A withdrawal removes an offer for new shoppers. An expiration is the end of your own contract term. The two are different events, and only the second one touches your bill.

Brady Hartung of Rhythm Energy summarized the calendar in the provider's September 1, 2026 delivery-charge update: "The five TDUs in Texas get approval from the Public Utilities Commission of Texas (PUCT) to change their rates throughout each year, but the largest changes are typically March 1 and September 1."

Summer 2026 gave providers plenty to reprice around. ERCOT recorded an all-time peak demand of 91,134 MW on July 22, 2026, and a weekend record of 90,411 MW on August 23, according to ERCOT's 2026 peak demand records. Those records stay unofficial until final settlement, and that settlement is what providers are pricing into their fall shelf right now.

When is the best time to renew an electricity contract in Texas?

The best time to renew a Texas electricity contract is a shoulder-season month, when statewide demand is moderate and providers are not pricing in peak risk. Rhythm Energy names April, May, September, and October as the months with lower demand and more stable rates. Energy Texas gives the same advice: renew in fall or early spring. The 60 to 90 days before your end date is the practical shopping window, and the final 14 days is the fee-free switching window.

The marketplace data adds a twist. Choose Texas Power's analysis of two years of purchases found that August was the cheapest month to buy, at an average of 16.67 cents per kWh as of July 21, 2026 including delivery, while January was the most expensive at 17.47 cents. At the 1,000 kWh tier, August was cheapest and January dearest. At 500 kWh, December was cheapest and July the most expensive. Author Dominique Coury offered one explanation: shoppers signing up in August "may be more eager to select the cheapest plan available to offset their recent high summer electricity bills."

So which is it, fall or August? Both numbers are real, and they measure different things. Shoulder-season advice describes the offer prices providers post. The Choose Texas Power figure describes what shoppers actually chose. The gap between the two is the discipline of the buyer, not the season.

The U.S. Energy Information Administration measures a third thing: the average price every Texan paid. Texas residential electricity averaged 15.94 cents per kWh in June 2026 (as of August 26, 2026, the latest EIA release), up from 15.26 cents in June 2025, per EIA's Electric Power Monthly. That average blends every contract still running from last year with every new one signed this summer. Timing your renewal controls the offer price you lock, not the statewide average. If you are choosing between plan types before you time the renewal, my guide to fixed-rate versus variable-rate electricity in Texas covers the tradeoff.

Renewing for a business instead? The small business electricity renewal guide covers when to renew and what to compare on a business plan.

The 30-14-0 Renewal Clock: what to do at each mark

The 30-14-0 Renewal Clock is a three-mark checklist built on the Public Utility Commission of Texas rules for residential contract expiration. Day 30 is when your notice must arrive. Day 14 is when you can switch for free. Day 0 is when your contract ends and the default rate takes over.

The PUCT's consumer guidance states the rule directly: "Retail electric providers are required to notify residential customers at least 30 days before a contract expires. The residential customer can switch without incurring an early termination charge if the switch is no earlier than 14 days before the contract expiration date provided in the notice. If the customer takes no action in response to the notice, the REP will serve the customer on a month-to-month product."

1. Day 30 (notice arrives): Pull the renewal offer and your current Electricity Facts Label side by side. Note the end date on the notice. That date, not your last bill date, drives everything that follows.
2. Day 30 to day 15: Shop new-customer offers in your ZIP code at your real usage. Compare the total bill at 1,000 kWh, not the headline rate. My walkthrough on reading the six numbers on a Texas Electricity Facts Label shows where the price cliffs hide.
3. Day 14 (fee-free window opens): Enroll in the winner. A switch requested inside this window carries no early termination fee under the PUCT rule.
4. Day 0 (contract ends): If you did nothing, you are now on the month-to-month product. Treat that as a deadline you missed, not a plan you chose.

What happens if your Texas electricity contract expires and you do nothing?

If your contract expires and you take no action, your provider moves you to a month-to-month product whose price can change every billing cycle. That is the default the PUCT rule describes. Month-to-month products carry no early termination fee, so leaving one costs nothing, but staying on one through a cold snap or a hot spell means paying whatever that month's price turns out to be.

Rebecca Bridges, chief marketing officer at ElectricityPlans and a deregulated-market veteran since 2001, put the risk in calendar terms in the site's 2025 shopping review: "Timing on your renewal matters most. For example, a 6-month contract can give you a low price from December to May. But you'll be shopping again at the start of the summer season, which makes it unlikely you'll retain that low rate."

A holdover rate works the same way in reverse. It floats you into whatever season comes next. A deliberate month-to-month plan, like the one I describe in how Lone Star Flex works, is a bridge you choose. A holdover is a bridge you fell onto.

Your plan got withdrawn from Power to Choose. Now what?

A withdrawal removes the offer for new shoppers. It does not change your existing contract, your rate, or your end date. Your Electricity Facts Label still governs until day 0. What changes is the shelf you will shop from when the 30-day notice lands.

Three moves cover it:

• Find your end date on your last bill or your Terms of Service, then set a reminder 45 days ahead of it.
• When the renewal offer arrives, compare it to current new-customer offers in your ZIP code at your usage. TexasPowerCost's plan-types guide notes that the spread between 12- and 24-month plans is usually under 1 cent per kWh as of September 21, 2026, so the term decision is smaller than the plan decision.
• Read the renewal EFL for usage credits, minimum-usage fees, and base charges. My piece on the five plan tricks that cost Texas households $480 a year lists the ones that show up most.

How much did delivery charges change on September 1, 2026?

Delivery charges changed on September 1, 2026 in every Texas utility territory, and the biggest move was CenterPoint's 28.3 percent per-kWh increase. Delivery charges are regulated by the PUCT, pass through on every plan from every provider, and show up as a separate line on your bill. Here are the per-kWh rates as of September 1, 2026, as reported by Rhythm Energy and Energy Texas:

One note on timing: BKV Energy's delivery-charge history lists Oncor's 6.0295-cent rate as effective August 1, 2026, and AEP Texas Central's decrease as effective August 28, so those two rows reflect the fall level rather than a September 1 step. I covered the Oncor change in why your Oncor delivery charge went down and your bill still went up.

For a Houston home using 1,000 kWh a month, CenterPoint's monthly delivery cost moves from about $54.71 to $69.03, according to BKV Energy's September 2026 analysis. Graham Lumley, BKV's growth product manager, put the impact at about 24 to 27 percent more per month depending on a home's usage. Since every provider passes the same delivery rate through, this raises every renewal offer in Houston by the same amount. It never changes which plan is cheapest.

Should you lock in 12 or 24 months this fall?

Lock in the term that ends in a shoulder month, and let the spread between terms decide the rest. Three quarters of Texas residential shoppers picked a contract of 12 months or less in 2025, and 61 percent chose exactly 12 months, up from 53 percent in 2024, according to ElectricityPlans' 2025 annual review. Long-term contracts saved only 3 to 5 percent, which was not enough to persuade most buyers. The site attributes the shift to the ERCOT wholesale market flipping into contango in August 2025, where near-term power is cheaper than power years out.

The end-date math matters more than the term label. A 12-month plan signed in October ends next October, a shoulder month. A 24-month plan signed in October does the same two years out. A 6-month plan signed now ends in March, which is fine. An 8-month plan lands in May, right at the door of summer, which is the trap Bridges described. If your contract ends in June, July, or August, use the term length to move the next end date, not to chase a fraction of a cent.

Whether the price itself is worth locking is a forward-curve question, and I worked through it in should Texans lock in a fixed rate this August. The short version: with 12- and 24-month spreads under a cent as of September 21, 2026, a fixed rate that ends in the right month beats a slightly lower rate that ends in the wrong one.

Which Ambit plan fits a fall 2026 renewal?

Three Ambit Energy plans map to the three situations a fall renewal creates. Lone Star Classic is the fixed-rate plan for locking a shoulder-season price for a full term. Lone Star Flex is the month-to-month plan with no contract, which works as a deliberate bridge when your current contract ends in a bad month and you want to reach October or March before you commit. Free and Clear Nights fits homes that can shift laundry, dishwashing, and cooling into the free-nights hours. I compared all of them, with rates, terms, and fees, in every Ambit Energy plan compared for 2026, and you can check current pricing in your ZIP code on the Texas electricity rates and plans page.

Rates and plan availability are as of September 22, 2026, vary by service area, and are subject to credit approval. The Electricity Facts Label for each plan has the full pricing and terms.

Frequently asked questions

How far in advance does a Texas electricity provider have to notify me before my contract expires?
At least 30 days before the expiration date for residential customers, per the Public Utility Commission of Texas. The notice must state the end date, and that date starts the 14-day fee-free switching window.

Can I switch electricity plans before my contract ends without paying a fee?
Yes, if the switch takes place no earlier than 14 days before the expiration date on your notice. Switching earlier than that can trigger the early termination fee listed on your Electricity Facts Label.

Does a plan being withdrawn from Power to Choose cancel my contract?
No. A withdrawal removes the offer for new customers. Your contract, rate, and end date stay exactly as written in your Terms of Service and Electricity Facts Label.

What is the cheapest month to sign up for electricity in Texas?
Choose Texas Power's marketplace data from the past two years shows August as the cheapest purchase month, at 16.67 cents per kWh as of July 21, 2026 including delivery, and January the most expensive at 17.47 cents. Provider guidance points to the shoulder months of April, May, September, and October for the most stable offer prices.

Is a 24-month plan worth it in fall 2026?
Only if it ends in a shoulder month and the rate is competitive. The spread between 12- and 24-month plans is usually under 1 cent per kWh as of September 21, 2026, per TexasPowerCost, and ElectricityPlans found long-term contracts saved just 3 to 5 percent in 2025.