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Oncor Proposes To Slash Inadvertent Gain Charge Applicable To REPs

Oncor Proposes To Be More "Lenient" In Required Movement Of Small Commercial Customers Into Demand Rate Class (That Includes Demand Ratchet) When Hovering Just Above Class Threshold


July 7, 2025

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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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As part of a newly filed rate case at the Texas PUC, Oncor is proposing to be more "lenient" in the treatment of non-residential customers which hover around 10 kW in a billing cycle, with a revised trigger for the movement of such customers onto a demand-based rate class

Currently, if a customer’s recorded demand exceeds 10 kW in a billing cycle, the customer will be moved from the 6.1.1.1.2 Secondary Service Less Than or Equal to 10 kW rate schedule to the 6.1.1.1.3 Secondary Service Greater Than 10 kW rate schedule. Likewise, if served at primary voltage, the customer would move from the 6.1.1.1.4 Primary Service Less Than or Equal to 10 kW rate schedule to one of the Primary Service Greater Than 10 kW rate schedules

Within these Greater Than 10 kW rate schedules, a demand ratchet may be applicable to the customer

Importantly, the customer cannot move back to the "Less Than 10 kW" rate schedule until the customer has remained below 10 kW for 12 consecutive months.

As part of the rate case, Oncor is proposing a tariff change that would, "allow the customer more flexibility and would be more lenient, which would therefore be more beneficial to the customer."

Oncor proposes that if a customer exceeds 10 kW but does not exceed 12 kW, then the customer would not move to the "Greater Than 10 kW" rate schedule until after the third consecutive or non-consecutive occurrence in a rolling 12-month time frame.

However, if the customer exceeds 12 kW at any time, Oncor proposes that the customer would move to the appropriate "Greater Than 10 kW" rate schedule in the following month.

With regards to the Secondary Service Less Than or Equal to 10 kW rate class, the current tariff language provides that, "Any recorded demand of greater than 10 kW will result in the premise being assigned to the Secondary Greater Than 10 kW rate schedule the following billing month."

The proposed revised tariff would state, "Any recorded demand of greater than 10 kW, three times in a rolling 12-month period, will result in the premise being assigned to the Secondary Service Greater Than 10 kW rate schedule the billing month following the third instance of greater than 10 kW demand. Any recorded demand of greater than 12 kW will result in the premise being assigned to the Secondary Service Greater Than 10 kW rate schedule the following billing month."

Similar language is proposed for the Primary Service Less Than or Equal to 10 kW rate class

In the rate case, Oncor is proposing, for the Residential and Secondary <= 10 kW classes, to decrease the aggregate flat monthly charge, while increasing the volumetric distribution charge. As noted below, for both these classes, the proposed changes result in a net 17 cent per month decrease in the aggregate flat monthly charge (though individual flat components are both increasing or decreasing), while the volumetric base distribution system charge would increase by about 1.1 to 1.3 cents per kWh, depending on class, not including riders

Oncor Distribution Rates
                        Current     Proposed
Residential
  Customer Charge
     per month           $1.43      $1.48
  Meter Charge
     per month           $2.80      $2.58
  Distribution System Charge 
     per kWh         $0.025344      $0.038294

Secondary <= 10 kW
  Customer Charge
     per month           $2.26      $2.34
  Meter Charge
     per month           $4.61      $4.36
  Distribution System Charge 
     per kWh         $0.021251      $0.032253

Oncor also proposes increases in various Discretionary Service Charges, with select proposed increases noted below

However, Oncor proposes to slash the Inadvertent Gain Charge from $35.65 to $4.00.

As previously reported, REPs had sought to eliminate the Inadvertent Gain Charge as a Discretionary Service Charge in Oncor's 2022 rate case, with the REPs in 2022 proposing that Oncor instead recover the actual costs as an operations and maintenance expense.

Oncor Discretionary Service Charges

 (charges are for standard meter, non-premium
   location unless otherwise noted)

                        Current     Proposed

Move-In 
  Existing Standard Meter  0.50      0.55

Move-In 
   New Standard Meter     24.35     28.70


Disconnection For Non-Payment (DNP)
Disconnection at Meter     0.25      0.35


Reconnection After DNP
Reconnection at Meter      0.35      0.45


Inadvertent Gain Charge   35.65      4.00


Docket 58306

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