Many Houston residents were shocked when they received their August electricity bills and noticed a significant increase compared to the previous month. The culprit was found to be a 46.5% jump in the transmission and distribution service provider (TDSP) charge paid to CenterPoint Energy, which maintains the infrastructure that delivers electricity to homes and businesses. CenterPoint raised the per kilowatt-hour TDSP charge on September 1st, but applied it to customers’ August electricity usage. This meant higher bills for August’s air conditioning needs, upsetting consumers.
The TDSP charge has two components – a fixed monthly fee and a variable per kilowatt-hour fee. The variable portion increased from 3.73 to 5.47 cents per kilowatt-hour. CenterPoint says this increase is to fund its new $200 million emergency power generation program and capital investments in poles, wires, and meters. The program was approved after the deadly 2021 blackouts with the goal of improving reliability.
While transmission and distribution charges fluctuate seasonally, this was an unusually large jump. Customers have little choice but to reduce electricity use or change retail providers to lower overall bills. The Public Utility Commission approved CenterPoint’s rate hike over the summer, though some consumers felt the increase should have been phased in gradually. The pattern of complaints has led Houston’s Better Business Bureau to revoke CenterPoint’s accreditation.