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Oncor Proposes To Slash Inadvertent Gain Charge Applicable To REPs
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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 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.
Docket 58306
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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
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 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
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