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Texas House Committee Chair Presses Texas PUC To Extend Demand-Based Transmission Rate Participation To Retail Electric Providers Serving Residential Customers

July 1, 2026

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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Texas State Rep. Drew Darby, Chair of the House Energy Resources committee, requested in a letter to the Texas PUC that the PUC, "extend demand-based transmission rate participation to Retail Electric Providers (REPs) serving residential customers".

Darby welcomed the proposed move away from 4CP rates, in a pending rulemaking, but said that such action does not go far enough in addressing transmission costs paid by residential customers

"Residential ratepayers are left absorbing a growing share of costs, costs that, in many cases, were driven by infrastructure investments sized to serve large commercial loads, not the households now paying for them," Darby said

Citing the legislature's directive in SB6, Darby said, "The logical next step is to authorize residential customers, through their REPs, to participate in demand-based transmission rates. Doing so would close the remaining gap in equitable cost allocation, honor the Legislature's directive, and ensure that the families of Texas share the same rate-management tools that have long been available to large commercial customers."

"Additionally, if the PUC has concerns about its statutory authority to implement such a reform, I would welcome that candor. The Legislature is actively conducting interim hearings on these issues, and knowing where the PUC believes its authority ends and where legislative action may be required would be valuable as we do that work," Darby said

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