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On April 2, 2026 the TPUC issued an Order approving the compliance filing by CenterPoint Energy Houston Electric, LLC to refund the balances in the collection account associated with Schedule TC5, under the Financing Order issued in Docket No. 398091 (the Financing Order). The Commission approves the Rider TC5 Refund tariff included as attachment E to CenterPoint Houston’s amended compliance filing filed on January 23, 2026.

The order approved by  the TPUC directs the utility to refund to Texas retail electric providers an over-collection of about $15 million which has been collected under the TC5 transition charge rider by the utility

The order directs CenterPoint to distribute to REPs and other entities responsible for collection of transition charges from retail consumers, the final balance of the general subaccount, excess funds subaccount and all other subaccounts. The amounts shall be distributed to each REP and other entity that paid Schedule TC5 transition charges during the last 12 months that the Schedule TC5 transition charges were in effect.

As previously reported on January 23,2026, CenterPoint Houston filed an amendment to the Original Compliance Filing, in which it proposed a new Rider TC5 Refund tariff, with a proposed effective date of May 1, 2026, and based on a projected six-month refund period (the Amended Compliance Filing).

In the Amended Compliance Filing, CenterPoint Houston also requested Commission approval to establish a regulatory liability or regulatory asset for any difference between the amounts refunded and the amounts owed at the end of the six-month refund period.

The Financing Order’s prescribed method for distributing the remaining collection account amounts is as follows:

Following repayment of the transition bonds authorized in this Financing Order and release of the funds held by the indenture trustee, the servicer, on behalf of BondCo, shall distribute to REPs and other entities responsible for collection of transition charges from retail consumers, the final balance of the general subaccount, excess funds subaccount and all other subaccounts (except the capital subaccount), whether such balance is attributable to amounts deposited in such subaccounts or to interest thereon, remaining after all other qualified costs have been paid. The amounts shall be distributed to each REP and other entity that paid Schedule TC5 transition charges during the last 12 months that the Schedule TC5 transition charges were in effect. The amount paid to each REP and the other entity shall be determined by multiplying the total amount available for distribution by a fraction, the numerator of which is the total Schedule TC5 transition charges paid by the REP or other entity during the last 12 months Schedule TC5 charges were in effect and the denominator of which is the total Schedule TC5 transition charges paid by all REPs and other entities responsible for collection of transition charges from retail ratepayers during the last 12 months the Schedule TC5 transition charges were in effect.”

In the order the Commission found, that “the method of distribution utilized in the Amended Compliance Filing conforms to Finding of Fact 64 of the Financing Order, by specifying that the remaining collection account amounts be credited by CenterPoint Houston to customers by allowing the use of existing market processes to enable REPs to flow those credits through to customers in accordance with each customer’s terms of service.

The method of distribution utilized in the Original Compliance Filing conforms to Ordering Paragraph 20 of the Financing Order, by refunding the remaining transition charge collection balances through a single disbursement to each REP that paid TC5 transition charges during the last 12 months that such charges were in effect.”