HOUSTON – Houston electric customers will start seeing higher bills even if their electricity use stays the same. That’s because transmission utilities like CenterPoint Energy are raising the rates they add to monthly bills starting Sept. 1.
2 Investigates reporter Amy Davis explains how much more customers can expect to pay.
The transmission rate increase is 1.3 cents more per kilowatt-hour, which can add up significantly on electric bills.
How much will my electric bill increase?
Using a customer’s August bill as an example, we did the math. The increase is on the T-D-U delivery charge. The energy charge from the retail electric provider remains unchanged.
In August, the example customer used 1,511 kilowatt-hours of electricity.
Multiplying that by CenterPoint’s current rate plus a flat $4.90 monthly fee results in a charge of $72.15.
Starting Sept. 1, the same 1,511 kilowatt-hours multiplied by the new, higher rate will cost the customer $92.67, an increase of $20.52.
This increase happens every Sept. 1 as the region heads into the fall and winter months, when electricity usage typically declines. Utilities say they need a steady flow of revenue to maintain equipment even when demand is lower.
On March 1, the rate is lowered heading into the summer months.
Another (different) CenterPoint rate increase is expected soon. Once the Public Utility Commission approves the amount CenterPoint says it needs to recoup costs from restoring power after Hurricane Beryl, customers will see bills increase by about another $2 each month for the next 14 years.
CenterPoint increases and decreases rates several times a month. Calculating the changes and keeping up can be difficult. This is the full statement from CenterPoint sent KPRC 2 about the upcoming rate change to repay the company for damages during Hurricane Beryl and other storms last year.
Full CenterPoint statement:
As a reminder about recent rate decreases, for CenterPoint Energy’s last settled rate case, which was supported by parties and approved the Commission, residential rates decreased by about $1/month over the next four years. Additionally, as CenterPoint has worked to provide the State of Texas with vital back-up power options in the San Antonio region, the large temporary generation units will be coming out of rates and by 2027, that reduction will grow to approximately $2 less per month.
On the Hurricane Beryl, Francine and Winter Storm Enzo proceeding, the severe storms that struck the Greater Houston area in summer 2024 and winter 2025 caused several billions of dollars in damage to our communities as well as CenterPoint Energy’s electrical infrastructure. As part of our commitment to prioritizing affordability for our customers, we proactively requested to spread these costs over several years and use more favorable financing
While the settlement outlines a path forward, it remains subject to final approval by the PUCT. We are currently awaiting final PUCT approval for determining the amount of costs approved for recovery as well as their review of the request for securitization including approval of the financing order. The structure of cost recovery could evolve as part of that ongoing regulatory process and the timing and pricing of the securitization bonds transaction.
Once fully approved, it will help minimize the customer bill impact from restoration efforts by spreading storm-related expenses over a period up to 14 years. This approach uses a lower financing rate than traditional methods, resulting in more modest monthly bill increases. We expect that approval from the PUCT and the bond issuance process could take several months, with rates going into effect in early 2026 and in place for the duration of the 14-year recovery period.
Under the proposed settlement, on average, a residential customer using 1000 kWhs per month, would see a rate adjustment of approximately $2.00 per month; however, that can be different initially and over the 14 year time period based on different factors including when the initial rates go into effect as well as residential usage variations that can be impacted by weather, customer growth and other impacts beyond the control of CenterPoint Energy.