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Texas Retail Providers Seek Change In Mechanism For Refunds From TDU
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The Texas REP Coalition requested that the Texas PUC direct CenterPoint Energy Houston Electric, LLC to use an alternative mechanism to distribute $14.92 million in proceeds collected under TC5 – Transition Charges back to retail electric providers
The nearly $15 million to be refunded to REPs represents the balance remaining after the TC5 bonds were fully paid off
CenterPoint Houston had stated that it would distribute the entirety of the TC5 collection balances to retail electric providers (REPs) through individual refunds to each of the REPs, based on the proportion of TC5 transition charges each REP remitted from August 1, 2023 to July 31, 2024 (the date the TC5 charge ended).
The Texas REP Coalition instead proposed a rate rider structure that would make use of existing
billing mechanisms utilized by CenterPoint Houston and REPs via Texas Standard Electronic Transactions
(Texas SET).
The Texas REP Coalition said, "This methodology would be the most efficient and accurate means to distribute the
refunds. Customer contracts with REPs frequently provide for a direct pass-through of regulated
charges from transmission and distribution utilities such as CenterPoint, which would include
refunds provided via this tariff rider. Under this methodology, the refund amount would be automatically calculated and distributed on a per-customer basis by CenterPoint in a consistent
manner across the market, and by REPs in accordance with each customer’s terms of service."
The Texas REP Coalition said, "This refund methodology is compatible with existing mechanisms and processes that
REPs use to pass along delivery charges and credits and is also consistent with the manner in
which similar transition charge refunds have been processed in prior proceedings."
Docket 59113
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January 9, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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