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Texas PUC Approves Use Of Standard Market Mechanism To Refund Transition Charges To Retail Providers, Rather Than Lump Sum Individual REP Refunds
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The Texas PUC approved the use of existing market processes to refund to Texas retail electric providers an over-collection of about $15 million which has been collected under the TC5 transition charge rider at CenterPoint Energy Houston Electric
CenterPoint Houston had initially stated that it would distribute the entirety of the TC5 over-collection balance to retail electric providers (REPs) through individual refunds to each of the REPs, in a lump sum, based on the proportion of TC5 transition charges that each REP had remitted from August 1, 2023 to July 31, 2024 (the date that the TC5 charge ended).
In response to requests from the Texas REP Coalition, CenterPoint Houston proposed an alternative refund mechanism under which the TDU would refund or otherwise disburse the TC5 final account balance through a proposed Rider TC5 Refund tariff mechanism, over a forecasted six-month period proposed to begin on May 1, 2026. Rider TC5 Refund will make use of existing billing mechanisms utilized by CenterPoint Houston and REPs via Texas Standard Electronic Transactions (Texas SET).
The Texas PUC has approved the use of this Rider TC5 Refund tariff mechanism
The approved credits to REPs under the Rider TC5 Refund mechanism are:
The PUC directed that CenterPoint Houston must implement the Rider TC5 Refund tariff as effective for scheduled customer meter read dates occurring on or after the provision of 45 days' notice to REPs.
Within two business days of April 2, CenterPoint Houston must issue notice of the approved Rider TC5 Refund tariff to REPs.
Rider TC5 Refund is expected to be in effect for a period of six months. However, Rider TC5 Refund is to remain in effect until the aggregate over-collection balance is exhausted regardless of the length of time required to achieve a full refund, with the rider terminating upon such exhaustion
Docket 59113
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April 2, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Rider TC5 Refund
Residential ($0.000278) Per kWh
Secondary < 10 kVA ($0.000329) Per kWh
Secondary > 10 kVA ($0.102410) Per kVA*
Primary ($0.103137) Per kVA*
Transmission ($0.069930) Per 4CP kVA
Lighting ($0.000557) Per kWh
* Amount is Per Billing kVA
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