{"id":5153,"date":"2020-02-12T06:27:58","date_gmt":"2020-02-12T12:27:58","guid":{"rendered":"http:\/\/www.texaselectricityratings.com\/blog\/?p=5153"},"modified":"2020-02-10T13:50:01","modified_gmt":"2020-02-10T19:50:01","slug":"centerpoint-tdu-gets-smaller-rate-hike","status":"publish","type":"post","link":"https:\/\/www.texaselectricityratings.com\/blog\/centerpoint-tdu-gets-smaller-rate-hike\/","title":{"rendered":"CenterPoint TDU Gets Smaller Rate Hike"},"content":{"rendered":"
\"

How high will CenterPoint’s rate increase be? Learn more about your Houston electricity TDU rates and save!<\/center><\/p><\/div>\n

How will CenterPoint TDU rate changes impact your electricity bill?<\/span><\/h2>\n

In a recent <\/span>settlement agreement<\/span>, CenterPoint TDU agreed to smaller rate hikes than it originally intended to levy. What does that mean for you? If you\u2019re a <\/span>typical residential electricity customer<\/span>, your electricity bill will go up about a dollar or two. You may not even notice the change, but because CenterPoint serves about 2.4 million Houston area customers, their attempt to increase prices drew the ire of some key people.\u00a0\u00a0<\/span><\/p>\n

New TDU rates in CenterPoint Houston<\/h3>\n

CenterPoint argues that Houston’s population continues growing. Consequently,\u00a0it needs to build more transmission lines and ensure their reliability and resiliency. In order to ensure that, the utility wants to increase rates. However,\u00a0CenterPoint and its electricity delivery rates<\/a>\u00a0have prompted\u00a0a legal tussle over the proposed new changes.\u00a0As a result they have been facing off against a group of large power users, retail electricity providers<\/a>, and a coalition of cities working to block the utility’s rate increases.\u00a0<\/span><\/p>\n

Based on the <\/span>likely resolution of the case<\/span>, CenterPoint may have been better off leaving rates alone. That’s because before the lawsuit, CenterPoint asked regulators to increase their rate of return from 10.0 percent to 10.4 percent. However, in the current settlement agreement, CenterPoint has lowered their rate to 9.4 percent.<\/span><\/p>\n

That agreement is now before the Public Utility Commission of Texas (PUC)<\/a> awaiting final approval.<\/span><\/p>\n

CenterPoint TDU Charge Rates<\/h3>\n

In Texas,\u00a0TDU charges cover maintenance of electricity infrastructure like poles, transmission lines, and meters. Retail electricity providers\u00a0pass the charges through to customers and forward the money to the TDU. As a result, TDU\u00a0charges appear separately on a customer\u2019s monthly bill. <\/span><\/p>\n

The following are CenterPoint’s agreed-to\u00a0<\/span>TDU charges<\/span> for residential customers:\u00a0<\/span><\/p>\n\n\n\n\n\n\n\n
TDU charge type<\/td>\nCurrent Rate<\/td>\nChange<\/td>\nSettlement Agreement Rate<\/td>\nBilling Unit<\/td>\n<\/tr>\n
Customer<\/span><\/td>\n$1.61<\/span><\/td>\n$0.65<\/span><\/td>\n$2.26<\/span><\/td>\nPer customer<\/span><\/td>\n<\/tr>\n
Metering<\/span><\/td>\n$4.41<\/span><\/td>\n($2.09)<\/span><\/td>\n$2.32<\/span><\/td>\nPer meter<\/span><\/td>\n<\/tr>\n
Transmission<\/span><\/td>\n$0.004437<\/span><\/td>\n($0.004437)<\/span><\/td>\n$0.00<\/span><\/td>\nPer kWh<\/span><\/td>\n<\/tr>\n
Distribution<\/span><\/td>\n$0.012218<\/span><\/td>\n$0.003286<\/span><\/td>\n$0.015504<\/span><\/td>\nPer kWh<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

What\u2019s the bottom line for CenterPoint TDU customers?\u00a0<\/span><\/h3>\n

TDU charges have nothing to do with electricity rates<\/a> charged by Houston retail electricity providers. \u00a0However, CenterPoint\u2019s proposed rate hike before the lawsuit would have cost a customer using 1,000 kWh in a billing cycle an additional $2.38 per month. If the PUC approves the settlement agreement, that increase will be smaller. Though chances are good that this monthly cost won\u2019t make or break your budget, slowly rising expenses are better than skyrocketing ones.<\/span><\/p>\n

Switching electricity providers in CenterPoint Houston<\/span><\/h3>\n

Compared to other TDUs in Texas, CenterPoint charges some of the lowest rates. No matter who you choose for your retail electricity provider, your home is served by one TDU. While TDU distribution rates don’t change that often, retail electricity prices rise and fall seasonally. That’s why you should still shop for the best electricity rates available. Peruse the information on <\/span>https:\/\/www.texaselectricityratings.com<\/span>. We\u2019re heading into a season where electricity rates drop, so you should consider locking in a fixed rate electricity plan today.\u00a0<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

How will CenterPoint TDU rate changes impact your electricity bill? In a recent settlement agreement, CenterPoint TDU agreed to smaller rate hikes than it originally intended to levy. What does that mean for you? If you\u2019re a typical residential electricity customer, your electricity bill will go up about a dollar or two. You may not Read More<\/a><\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","inline_featured_image":false,"_mbp_gutenberg_autopost":false},"categories":[1],"tags":[],"yoast_head":"\nCenterPoint TDU Gets Smaller Rate Hike - Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.texaselectricityratings.com\/blog\/centerpoint-tdu-gets-smaller-rate-hike\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"CenterPoint TDU Gets Smaller Rate Hike - Blog\" \/>\n<meta property=\"og:description\" content=\"How will CenterPoint TDU rate changes impact your electricity bill? 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