If you received your latest electric bill within the last week you may have been shocked at how high it was. Several customers emailed Investigator Amy Davis concerned their electric provider overcharged them.

KPRC 2 Investigates is getting a lot of questions about a recent electric bill fee increase that just went into effect. They asked Investigator Amy Davis to get some answers. Amy explains what to look for on your bill.

The TDSP fee increased on September 1

We told you last week that the companies that own the lines and wires (CenterPoint Energy and Texas New Mexico Power) increased transmission and distribution fees (TDSP fees) on September 1. But some of you have messaged KPRC 2 Investigates because you noticed your electric company applying the new rate to all of the electricity you’ve used even before September 1.

Garrett Long sent us his electric bill from Frontier Utilities. Every retail electric provider’s bills look a little differently; but this charge should be labeled something like “TDU Delivery Charge,” “CenterPoint Delivery Charge,” or “TDSU Charge.”

Where to find the TDSU charge on your electric bill

On the list of charges, fees, and tax look for the line that reads TDU delivery charges.

• Long was charged $107.45.
• Those TDU charges are now 5.47 cents a kilowatt plus $4.39.
• But before September 1, the TDU rate was 3.7 cents a kilowatt plus $4.39.
• Long’s bill covers August 3 through September 1, so he thought only one day of energy should be charged that higher rate.
• We did the math by multiplying Long’s total kilowatts (2003 kWh) times the old rate. Using the old rate, that would have been about $78.50 for the TDU charges, not $107.45.

“I said no, that ain’t right. I was overcharged. I shouldn’t be charged that new TDU rate that’s when I contacted the Public Utility Commission because I had no confidence Frontier would offer or change anything on my bill,” said Long. “I doubt it’s just Frontier. It’s probably anybody that received an electric bill was probably charged a higher rate than they were supposed to.”

He’s right. CenterPoint Energy applied the new, higher rate to all bills that went out on or after September 1st, regardless of when the electricity was used. A CenterPoint spokesperson told us the company has always applied the rate this way. TDUs like CenterPoint and Texas New Mexico Power adjust rates up every September 1st and decrease them on March 1st. You can read more about that here.

Complaining May Help

Long called Frontier to tell them he was overcharged, and a Frontier representative told him there was nothing they could do about it. He filed a complaint with the Public Utility Commission. They reached out to Frontier; and Frontier offered Long a $50 credit to his bill. If you ever feel like you can’t resolve an issue with your REP, you should file a complaint with the PUC’s Customer Protection Division. They will reach out to your REP to try and help.

Public Utility Commission statement

The Public Utility Commission of Texas approved CenterPoint Energy’s rate change effective for billings on and after September 1. These rates are charged as of the billing date, not the usage date.

If a consumer believes there is an issue with their bill, we encourage them to first contact their retail electric provider. If they can’t resolve the issue with their provider directly, consumers can contact the PUCT’s Consumer Protection Division by emailing consumer@puc.texas.gov, calling 1-888-782-8477, or filing an informal complaint.

Frontier Utilities statement

“We understand how difficult it is for customers to receive a higher-than-expected electric bill, which is why we work with closely customers to help them pay their bills, including offering payment arrangements. While we do not discuss individual customer accounts, we have verified the customer’s concerns are not the result of a billing issue at Frontier. We have reached out to the customer and explained how Transmission and Distribution Utility (TDU) charges, which are a direct passthrough, are reflected on electric bills in Texas.

It’s important to understand that neither Frontier nor any retail electric provider in Texas controls TDU rates. TDU rates are proposed by Transmission and Distribution utility companies, reviewed and approved the Public Utility Commission of Texas, and adjusted in March and September. The TDU calculates the TDU charges based on the last day of the customer’s billing cycle, delivers those charges to Frontier which then passes these charges to customers as part of their electric bill. This means a customer whose billing cycle ends on Sept. 1 is charged the TDU rate effective on Sept.1 for the entire billing period, even though the usage occurred primarily in August. This is no different than if a rate decrease went into effect on the last day of a customer’s billing cycle. In that instance, the TDU charge would reflect the newer, lower rate, even though most of the electric usage took place prior to the rate decrease.”

CenterPoint Energy statement

Three specific rates have been updated as of Sept. 1, 2023, these rates have always been billed based on the “meter read date,” in accordance with our commission-approved tariff. Unlike some other rate structures, these rates are not prorated. Riders that are billed on the rates in effect on the date that the customer’s meter is read are designated in the individual riders above the rate schedule in the CenterPoint Energy Tariff for Retail Delivery Service.

The rates that have been updated on Sept. 1 are as follows: [See more here]

1. TEEEF - CenterPoint Energy Tariff for Retail Delivery Service page 234

2. DCRF - CenterPoint Energy Tariff for Retail Delivery Service page 230

3. TCRF - CenterPoint Energy Tariff for Retail Delivery Service page 217

As part of our regular adjustment schedule, the TCRF (Transmission Cost Recovery Factor) is adjusted in March and September each year (meaning that we file twice a year, usually file in December and June so the new rates go into effect in March and September). This adjustment accounts for the seasonality of electricity usage, with rates tending to decrease in March and increase in September to align with the patterns of seasonal kWh consumption. The DCRF (Distribution Cost Recovery Factor) is a rate adjustment allowed by Texas statute that permits electric utilities to implement new rates to account for changes in distribution-invested capital without filing a full rate case and the TEEEF (Temporary Emergency Electric Energy Facilities) rider recovers costs for facilities that provide temporary emergency electric energy to help restore electric service to its distribution customers during a widespread power outage.