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Texas TDU Would Eliminate Inadvertent Gain Charge Assessed On Retail Providers, Under Rate Case Settlement
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Oncor and major parties to Oncor's electric rate case at the Texas PUC have reached what is described as an unopposed settlement that would, among other things, eliminate the inadvertent gain charges currently charged to retail electric providers
Signatory parties include Oncor, Texas PUC Staff, the Office of Public Utility Counsel, several cities with original jurisdiction, Texas Industrial Energy Consumers, and the Texas Energy Association for Marketers and the Alliance for Retail Markets, among others
The settlement provides that Oncor will remove inadvertent gain charges from its discretionary services charges set forth in Oncor's proposed Tariff for Retail Delivery Service.
As previously reported, Oncor in its initially filed rate proposal would have slashed the Inadvertent Gain Charge from the current $35.65 to $4.00. The settlement would reduce the Inadvertent Gain Charge to $0 under all types of Discretionary Service Charges
The settlement would set other Discretionary Service Charges (Move-in, DNP, reconnection, etc) as originally proposed by Oncor in the TDU's initial filing (see these DSCs in our prior story here)
The settlement would set Oncor's residential and Secondary <= 10 kW distribution rates as follows (current and initial proposal also provided):
The settlement provides that, in Oncor’s next base-rate case, Oncor will propose two alternatives for the Secondary >10 kW rate class rate design for the PUC to choose between.
One alternative will be based on the existing rate design.
The other alternative will eliminate the demand ratchet and annual load factor tiers methodology, with associated adjustment of the billing determinants.
All parties will be free to take any position regarding which rate design is appropriate, including any targeted relief for specific facility types.
Docket 58306
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January 29, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Oncor Distribution Rates
Initial
Current Filing Settlement
Residential
Customer Charge
per month $1.43 $1.48 $1.48
Meter Charge
per month $2.80 $2.58 $2.58
Distribution System Charge
per kWh $0.025344 $0.038294 $0.036043
Secondary <= 10 kW
Customer Charge
per month $2.26 $2.34 $2.34
Meter Charge
per month $4.61 $4.36 $4.36
Distribution System Charge
per kWh $0.021251 $0.032253 $0.031236
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