News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
Two Separate Proposed Orders Presented Re: CenterPoint Disbursement Options
On February 17, 2026, CenterPoint, REP Coalition, and Staff jointly filed evidence and two proposed orders -one for each disbursement option – Option 1 or Option 2.
As background, the docket was initiated in response to a CenterPoint’s compliance filing regarding its PUCT-ordered redistribution to retail electric providers (REPs) of ~$15 million in collected transition charges under Schedule TC5 from 8/1/23-7/31/24.
CenterPoint had originally proposed that it would do so through individual refunds based on the charges paid by each REP.
However, Texas REP Coalition intervened and requested that CenterPoint instead use a rate rider structure that would make use of existing Texas Standard Electronic Transactions (SET) billing mechanisms, as it would be the most efficient and accurate means of distribution.
On February 2, 2026 Staff filed its final disposition recommendation. Staff said that, “[t]he proposed Option 2 is better suited to ensure that ratepayers receive the benefit of the refund, because ratepayers will be refunded based on their actual usage consistent with established billing practices.”
On January 23, 2026 CenterPoint filed amendment to its compliance filing where CenterPoint presented an additional refund methodology labeled “Option 2.”
Option 2 came about based on the REP Coalition’s filing proposing “under which the Company would refund or otherwise disburse the TC5 final account balance through a proposed Rider TC5 Refund tariff mechanism over a forecasted six-month period beginning on May 1, 2026.”
CenterPoint further noted that Option 2 is “the only mechanism by which CenterPoint Houston can be made whole is through the creation of a regulatory asset or regulatory liability,” as “Absent an additional another true-up, CenterPoint Houston has limited means to refund amounts to, or recover amounts from, customers.”
