CenterPoint Houston Rate Hike Waiting for PUCT

by | Mar 12, 2024 | Industry News, Save Money

Will PUCT Approve CenterPoint Rate Hike?

Houston gets a rate hike from CenterPoint Energy this month to cover their Distribution Cost Recovery Factor. Learn why it's on your monthly bill.
CenterPoint Energy customers will see a rate hike on their Houston bills. Learn why the city approved CenterPoint’s Distribution Cost Recovery Factor charge and how much more you’ll pay.

Last month, CenterPoint made a deal with the City of Houston and other local governments in its service area to add a Distribution Cost Recovery Factor (DCRF) rate to residential bills. Effective March 1, this Houston electric company slaps an extra $2.67 on the delivery charge. So, an average Houston home using 1,000 kWh per month will pay an extra $3.96 for the rate hike on every bill. Interestingly, the DCRF rate is deemed interim, signaling the likelihood of future changes.

Recent state rules changes empower electric utilities such as CenterPoint to seek delivery rate tweaks twice a year. In turn, the Public Utility Commission of Texas (PUCT) must swiftly review these requests within a tight 60-day window. This month, CenterPoint filed a general rate case with the PUCT, raising the uncertainty on the future of Houston power bills. That means PUCT is on the clock.

So, will your power bills increase? In the short-term, yes. And in the long-term, probably so. After all, it costs a lot of money to care for Houston’s power delivery system. 

Houston consumers face a new CenterPoint Energy rate hike but can save more when they shop cheap rates.
Everyone pays distribution rate hikes but the best way to really cut your Houston electricity bill is to shop cheap rates!

Texas Utility Duties

The Houston deal and the rate bump that comes after arise from a mix of factors. The big one is the need for better infrastructure and upkeep. While inconvenient, these rate shifts help make sure the power grid stays reliable and safe. We may not like paying for the power grid, but we sure need it.

Texas utilities go beyond merely distributing power. They manage the framework needed to deliver power to your home. This includes service for power lines, substations, and other critical pieces of the electrical grid. So, utilities play a crucial role in managing the flow of power across the grid. They balance the supply and demand, ensuring a stable and reliable power supply for homes.

Furthermore, utilities respond to outages promptly, working fast to restore power when disruptions occur. And aren’t you glad they work quickly? Your monthly payment funds the workers who brave the wind and rain to bring back your service.

Houston Rate Hikes

The CenterPoint rate hike, now waiting for PUCT approval, adds a layer of complexity to the already dynamic electricity landscape in Houston. To protect yourself from rising utility costs, make sure your retail plan is the best one for your needs. Shop for plans at to find the one that suits your home. With low retail power costs, your wallet can weather utility rate hikes.

Our Facebook Page

Recent Posts