Skip to main content
PUCT seal
Public Utility Commission of Texas
Page breadcrumbs and sidebar menu launch button
Skip Navigation Links
PUCT General page content

Office of Public Engagement  

Guide to the Electric Rate Case Process for Investor-owned Utilities inside ERCOT

CenterPoint Energy, Oncor, TNMP, AEP Texas are investor-owned Transmission and Distribution (TDU) electric utilities operating the poles, wires, substations, and other equipment that carry electricity from the power generator to the customer. TDUs charge electric delivery rates to Retail Electric Providers (REP) that are passed through to consumers in their electric bill. The rates charged by TDUs are set by the Public Utility Commission of Texas (PUCT). The PUCT sets rates that allow the TDU to recover the costs of providing delivery service along with an opportunity for a reasonable rate of return on their investment in transmission and distribution equipment.

TDUs are required to notify customers when they request a rate change from the PUCT. Customers and groups affected by a rate change are entitled to participate in the rate case and express their thoughts about the rate requests.

 


Process of an electric rate case

 

Step 1

Application - The TDU files an application for a rate change with the PUCT. The application includes financial, engineering, and customer-usage information supporting the new rates.

Step 2

Administrative Completeness - PUCT technical staff and the PUC's internal administrative law judge determine if the application contains the basic information to proceed with the rate case.

Step 3

Deadline to Intervene -Anyone who wants to actively participate in the case as intervenors must submit a request by this date that is set by the Administrative Law Judge.

Step 4

Referral to State Office of Administrative Hearings (SOAH) - SOAH is a state agency, separate and independent from the PUCT. SOAH conducts hearings, collects evidence and testimony.

Step 5

Proposal for Decision - After hearing from the different sides and considering the law and evidence, the SOAH judge makes a recommendation to the PUC Commissioners. The PUC Commissioners are not bound by the recommendation from the SOAH judge.

Step 6

Open Meeting - The PUC Commissioners vote on a rate change request during a regularly scheduled meeting open to the public and broadcast online. Duly registered intervenors may speak during the open meeting. They must request "Oral Argument" before the meeting to address the commission.


 

How to Follow Along
  • Using the five-digit docket number, you can read all the documents that are filed related to this case. You can sign up to receive an email notification whenever a new document is filed. This can potentially be hundreds of documents. Follow these instructions for how to receive email notifications.
How to participate
  • The PUCT Office of Public Engagement has more information on how to participate in a rate case.
Types of Rate Cases
  • Energy Efficiency Cost Recovery Factor (EECRF) - State law requires electric utilities to offer energy efficiency programs to customers. These programs involve installing energy efficiency measures like insulation, high efficiency lighting and more. In addition, the utilities also offer programs to help schools and local governments reduce operating costs and save energy. Electric utilities recover the costs for these programs through the EECRF.
  • Distribution Cost Recovery Factor (DCRF) - This covers the cost of the smaller poles and wires that you see in your neighborhood. Maintaining and improving the distribution system reduces the number of outages and makes those outages shorter.
  • Transmission Cost Recovery Factor (TCRF) - This covers the costs to build and operate the large towers and wires that carry power long distances from power plants to your local area. The transmission systems are the major highways of the electric grid. Without a strong transmission system, electricity from power plants is backed up and can't get where you need it.
  • Temporary Emergency Electric Energy Facilities (TEEEF) - This pays for mobile generators that can supply electricity to an individual city or neighborhood during an emergency. When the link between a city or neighborhood and a power plant is knocked out by a storm or hurricane, it can take days to repair. Mobile generators can restore the power in an area until those major lines are back and reconnected to the broader electric grid.