What became AEP Central started out in 1916 as the Central Power and Light Company (CPL) providing towns in Arkansas, Missouri, and Texas with electricity, ice, and street railway service. In 1925, CPL came under the control of Central and South West Corporation (CSW). In the late 1940s, the CSW separated off its natural gas, water, and ice businesses and focus solely on its electric utility operations, including CPL. American Electric Power (AEP) bought CSW in 1979, renaming it AEP Texas. CPL then became AEP Texas Central Company.
Following deregulation, AEP Texas kept its AEP Central and AEP North subsidiaries as separate TDSP/TDU companies. In 2016 both were finally fully merged into AEP Texas. In 2019, AEP Texas began consolidating charges from its North and Central Divisions into one rate. The new single tariff rate went into affect in May, 2020.
American Electric Power (AEP) is an investor-owned electricity utility company based in Corpus Christi, Texas. Because AEP Texas serves so much of Texas, the company is active in all the communities it serves. In 2019, the AEP Texas Foundation supported more than 160 nonprofit organizations and social services agencies throughout the state. Over the years, the AEP Texas Foundation has become a mainstay in communities, awarding numerous grants to education and social justice projects as well.
Frequently Asked Questions About AEP Texas Central
Here are answers to some common questions that people have had about AEP Texas Central
Find out more about rate reforms planned for the Texas grid and how they might affect your choices and your electric bills.
What Planned Rate Reforms for the Texas Grid Are Coming?
The thaw after Winter Storm Uri has come, and nearly all Texans have reliable power and water once again. But as Texans huddled in unheated homes and boiled snow for potable water, they wondered who to blame. They also wanted measures in place to prevent it happening again. Lawmakers demanding answers have since returned to the Texas Capitol and planned rate reforms for the Texas grid.
Weatherizing Electricity and Natural Gas Infrastructure
Winter Storm Uri caused numerous freeze-offs that shut down both natural gas pipelines and Texas electricity plants. The Texas House and Senate differ in their approaches to improving weatherization. House legislation addresses electricity infrastructure but remains silent on natural gas. However, House leaders say natural gas infrastructure legislation is on the way. That means the lower and upper chambers could be closer in thinking than their bills currently reflect. High profile bills tend to be fluid until conference committee members hash out details late in a legislative session. Both House and Senate legislation authorize the Public Utility Commission of Texas to penalize utility companies when they fail to weatherize. No doubt the five TDUs operating in Texas (AEP Texas Central, AEP Texas North, Centerpoint Energy, Oncor, TNMP) are watching this provision closely. An interesting sticking point is who will pay for all this weatherization. Current legislation does not address that issue. In the end, customers will likely bear the brunt whether through public expenditures or higher electricity bills.
Emergency Alerts ... Someday
House and Senate bills under consideration would create an emergency alert system for power disasters. The Senate version moves more quickly by directing the Public Utility Commission to create one. The House version requires the Texas Division of Emergency Management to conduct a study by March 2022.
Bye Bye Griddy
Rate reforms planned for Texas grid include the banning of wholesale indexed products like those offered by now-defunct Griddy. Some customers saw rates skyrocket during the storm to as much as $9.00 per kWh. Banning products like Griddy’s appears to have traction in both chambers of the legislature.
Legislation to be Finalized Soon
Whatever the legislature decides to send to Governor Greg Abbott, Texans won’t have to wait long to see it. The last day of the 87th Regular Session is May 31. At that point, Abbott will decide which bills to sign and which to veto. Only then will Texans know what to expect for the Texas power grid.
Posted on Occasionally, folks ask some good questions when they’re shopping for electricity. Our Texas Electricity Consumer Questions Series tries to clear up the confusion and answers those questions so you can be a better-informed consumer.Generating electricity is only half its cost. Getting it to you is the other. Photo by Ladyheart at Morguefile.com
From J. in Sharyland— “Are there any REPs that don’t have high TDU charges?”
We understand your frustration, J., but remember that REPs don’t have TDU charges —consumers do. Here's why:
TDU’s own and maintain the local network of transmission and distribution lines. TDUs must offer access to their wires to all REPs on a non-discriminatory basis under standard terms and conditions set by the PUC. REPs sell the electricity to their customers.
Electricity consumers live within a TDU company’s service territory and receive their electricity via that utility’s wires. The consumer buys the electricity from a REP but must pay for the transmission and distribution of that electricity over the local wires to their home.
TDU delivery charges depend on where the consumer lives, who their TDU is, and the PUC-approved rate their TDU can charge them based on their electrical usage.
TDU service territories in ERCOT are divided into 5 main service areas which are based on the original investor-owned utilities (IOU) from before deregulation. These IOUs are:
Texas-New Mexico Power Company (TNMP)
AEP Texas Central
AEP Texas North
Center Point Energy
Oncor
Sharyland Utilities territory mainly straddles Oncor and AEP Texas North.
Some background—Back in March 2015, Sharyland Utility residential customers saw a 25% increase in their TDU charges. The increase stemmed from Sharyland’s rate case application to the PUC to increase its rates following its merger with Cap Rock Energy. The new service territory was then known as “SU-CapRock”.
Unfortunately, settling the whole mess turned into a game of “kick the hornet’s nest”. The PUC and all concerned parties are still working to sort it all out. Sharyland’s delivery rates remain among the highest in the state.
Zip Codes with the Cheapest AEP Texas Central Rates in Texas
Generating electricity is only half its cost. Getting it to you is the other.
© 2023 Texas Electricity Ratings — Rates as of
