Energy field notes / Delivery charges
CenterPoint delivery charges for businesses (2026)
CenterPoint's delivery charges are the part of a Houston business electricity bill that no retail provider can change: CenterPoint Energy Houston Electric delivers the power, the Public Utility Commission of Texas approves the prices, and your provider passes them through. Above 10 kVA most of them are billed on your peak demand for the month, measured in kVA rather than kW, with no ratchet on the distribution charge. Here is what each line pays for, which lines changed in 2026, and what you can do about the total.
By Wire & Watt Published Updated
What are CenterPoint delivery charges?
CenterPoint Energy Houston Electric operates the transmission and distribution system in the Houston area and does not generate electricity. Your retail electricity provider sells you the supply and sends the bill.
CenterPoint charges your provider for delivering and metering the power, and your provider passes those delivery charges on to you. The rates come from CenterPoint’s Tariff for Retail Delivery Service, approved by the Public Utility Commission of Texas, and they apply whichever provider you choose.
Which rate class is my business on?
- Secondary Service Less Than or Equal to 10 kVA. Small sites. Apart from fixed monthly charges, the delivery charges are priced on the kWh you use.
- Secondary Service Greater Than 10 kVA. Non-residential sites whose peak demand is above 10 kVA in the current month, or was above 10 kVA in any of the previous 11 months. Most delivery charges are priced on peak demand.
Sites with commercial kitchens, refrigeration or larger air conditioning often fall into the larger class.
Why CenterPoint bills in kVA.
CenterPoint measures demand in kilovolt-amperes (kVA), where Oncor uses kilowatts (kW). kVA counts all the power your equipment draws from the lines, including the part that does no useful work, so a site’s kVA is usually a little higher than its kW. Equipment such as motors and compressors widens the gap.
What each CenterPoint charge pays for.
For a site on Secondary Service Greater Than 10 kVA, CenterPoint’s delivery charges are made up of the following. The prices change between rate cases: in 2026 the TCRF and Schedule SRC II changed on September 1, the TEEEF rider (temporary emergency generation) on August 15 and the DCRF rider on September 30. The current amounts, each with its sheet date, are in the next section.
| Charge | Billed on | What it pays for |
|---|---|---|
| Customer charge | Fixed, per month | Customer service and billing. Higher for IDR-metered accounts. |
| Metering charge | Fixed, per meter, per month | The meter and reading it. Higher for IDR-metered accounts. |
| Distribution System Charge | Per billing kVA | The local poles, wires and substations that deliver power to your site. |
| Transmission Cost Recovery Factor (TCRF) | Per NCP kVA, or 4CP kVA if IDR-metered | Your share of the cost of the ERCOT high-voltage transmission system. |
| Distribution Cost Recovery Factor (DCRF) | Per billing kVA | Distribution investment CenterPoint recovers between full rate cases. |
| Energy Efficiency Cost Recovery Factor (EECRF) | Per kWh | CenterPoint's energy efficiency programs. |
| System restoration charges | Per billing kVA | Repays bonds the Public Utility Commission approved in 2025 to finance system restoration costs. |
| Other riders and credits | Per billing kVA | Nuclear decommissioning, rate case expenses, temporary emergency generation, and tax-related credits. |
What CenterPoint charges right now.
From the tariff sheets in force on October 31, 2026. Sites at or below 10 kVA pay per kWh; sites above 10 kVA pay mostly per kVA of demand, on the current month’s peak. IDR-metered sites pay higher fixed charges and transmission on 4CP kVA, noted in the table. The Texas prices page holds the same tables beside Oncor’s and the state averages.
| Charge | Amount | Sheet effective |
|---|---|---|
| Customer charge | $2.01 per month | February 26, 2026 |
| Metering charge | $2.95 per month | February 26, 2026 |
| Distribution System Charge | $0.017893 per kWh | February 26, 2026 |
| Transmission Cost Recovery Factor (TCRF) | $0.011506 per kWh | September 1, 2026 |
| Distribution Cost Recovery Factor (DCRF) | $0.005490 per kWh | September 30, 2026 |
| Energy Efficiency Cost Recovery Factor (EECRF) | $0.004970 per kWh | March 1, 2026 |
| System Restoration Charge (Schedule SRC III) | $0.002842 per kWh | February 26, 2026 |
| System Restoration Charge (Schedule SRC II) | $0.000627 per kWh | September 1, 2026 |
| Temporary Emergency Electric Energy Facilities (Rider TEEEF) | $0.000378 per kWh | August 15, 2026 |
| Rate Case Expenses Surcharge (Rider RCE) | $0.000040 per kWh | April 28, 2025 |
| Nuclear Decommissioning Charge (Rider NDC) | $0.000006 per kWh | April 28, 2025 |
| ADFIT Credit (Rider ADFITC II) | ($0.000023) per kWh | September 1, 2026 |
| ADFIT Credit (Rider ADFITC III) | ($0.000417) per kWh | February 26, 2026 |
| Added up | $4.96 per month, fixed$0.043312 per kWh (4.33 cents) | |
| Charge | Amount | Sheet effective |
|---|---|---|
| Customer charge$64.72 for IDR-metered sites | $4.14 per month | February 26, 2026 |
| Metering charge$86.69 for IDR-metered sites | $9.27 per month | February 26, 2026 |
| Distribution System Charge | $4.893378 per billing kVA | February 26, 2026 |
| Transmission Cost Recovery Factor (TCRF)$6.177655 per 4CP kVA for IDR-metered sites | $4.342591 per NCP kVA | September 1, 2026 |
| Distribution Cost Recovery Factor (DCRF) | $1.008963 per billing kVA | September 30, 2026 |
| System Restoration Charge (Schedule SRC III) | $0.495587 per billing kVA | February 26, 2026 |
| Temporary Emergency Electric Energy Facilities (Rider TEEEF) | $0.133331 per billing kVA | August 15, 2026 |
| System Restoration Charge (Schedule SRC II) | $0.110774 per billing kVA | September 1, 2026 |
| Rate Case Expenses Surcharge (Rider RCE) | $0.008707 per billing kVA | April 28, 2025 |
| Nuclear Decommissioning Charge (Rider NDC) | $0.001460 per billing kVA | April 28, 2025 |
| Energy Efficiency Cost Recovery Factor (EECRF) | $0.000930 per kWh | March 1, 2026 |
| ADFIT Credit (Rider ADFITC II) | ($0.003930) per billing kVA | September 1, 2026 |
| ADFIT Credit (Rider ADFITC III) | ($0.072680) per billing kVA | February 26, 2026 |
| Added up | $13.41 per month, fixed$6.575590 per billing kVA$4.342591 per NCP kVA (the month’s 15-minute peak)$0.000930 per kWh (0.09 cents) | |
Worked month, as an illustration only: a non-IDR site with a 50 kVA peak, 15,000 kWh, pays about $573 in CenterPoint charges, or 3.8 cents per kWh before supply, taxes and fees.
How your peak is measured.
Your NCP kVA for the month is the kVA supplied during the 15-minute period of highest use in that billing month. Under CenterPoint’s tariff for this rate class, the billing kVA for the Distribution System Charge is the NCP kVA for the current billing month.
Our guide to demand charges explains the difference between demand and usage, and practical ways to lower a peak.
IDR metering and 4CP.
CenterPoint has two sets of customer and metering charges for this class: IDR-metered and non-IDR-metered. An IDR (interval data recorder) meter records usage in intervals. The IDR-metered charges apply to sites that have reached a peak above 700 kVA in any previous billing month, whatever meter they have.
For those sites, the Transmission Cost Recovery Factor is billed on 4CP kVA: the average of the site’s demand at the moment of ERCOT’s system peak in each of June, July, August and September of the previous year. CenterPoint updates it with the February billing month and keeps it fixed for a year. Other sites are billed on their monthly peak.
Houston vs Dallas: how CenterPoint and Oncor differ.
If you have sites in both Houston and Dallas-Fort Worth, the delivery charges on the two bills are built differently. Both come from tariffs approved by the Public Utility Commission of Texas.
| For larger business sites | Oncor (Dallas-Fort Worth) | CenterPoint (Houston) |
|---|---|---|
| Demand unit | kW | kVA |
| Larger rate class starts above | 10 kW | 10 kVA |
| Distribution charge priced on | Billing kW; can be 80% of the highest peak in the past 11 months | The current month's peak (NCP kVA) |
| Distribution price per unit | Varies with annual load factor above 20 kW | One price per kVA |
| 4CP applies to sites that reached | 700 kW or more in any previous month | Above 700 kVA in any previous month |
| 4CP value updated | January 1 | With the February billing month |
Our guide to Oncor delivery charges covers the 80% ratchet and load factor in detail.
What you can and cannot change.
A new supply contract does not change CenterPoint’s delivery charges; they apply whichever provider you choose. What you can influence is the peak those charges are priced on: stagger equipment start-up, watch the demand line each month, and for sites near 700 kVA, plan for ERCOT’s summer peaks.
When we review a bill, we compare the supply charges and flag the delivery charges so you see the whole picture. For a Houston site, start with your ZIP and add your bill when you have it.
Common questions
- What are CenterPoint delivery charges?
- The charges CenterPoint Energy Houston Electric bills your retail electricity provider for delivering and metering power in the Houston area, under a tariff approved by the Public Utility Commission of Texas. They appear on your bill whichever provider you choose, and no provider can discount them.
- Why are CenterPoint delivery charges higher in 2026?
- Four sheets in CenterPoint's tariff changed in 2026: the TCRF (transmission) and Schedule SRC II (restoration bonds) on September 1, TEEEF (temporary emergency generation) on August 15, and DCRF (distribution investment between rate cases) on September 30. The amounts and dates are in the table above; compare them with the TDU section of two bills to see which moved for your meter.
- Can a business avoid or reduce CenterPoint delivery charges?
- Not by switching provider: they apply to every retail plan. Because the distribution charge is billed on this month's peak kVA with no ratchet, lowering your peak lowers next month's charge straight away. kVA also counts reactive power, so equipment with a poor power factor raises the kVA you are billed on.
- How much are CenterPoint delivery charges for a business?
- For a non-IDR site above 10 kVA: $13.41 a month fixed, $6.575590 per billing kVA, $4.342591 per NCP kVA and $0.000930 per kWh, from sheets effective February 26 to September 30, 2026; a 50 kVA, 15,000 kWh month is about $573. Sites at or below 10 kVA pay 4.33 cents per kWh plus $4.96 a month. Each line is in the table above with its sheet date.
- Why does CenterPoint bill in kVA instead of kW?
- CenterPoint measures demand in kilovolt-amperes (kVA), which counts all the power your equipment draws, including the part that does no useful work. So a site's kVA is never lower than its kW, and usually a little higher.
- When is a business on CenterPoint's larger rate class?
- When it is a non-residential site whose peak demand is above 10 kVA in the current month, or was above 10 kVA in any of the previous 11 months.
- What is IDR metering at CenterPoint?
- Sites that have reached a peak above 700 kVA in any previous billing month pay CenterPoint's IDR-metered customer and metering charges, and their transmission charge is billed on 4CP kVA, updated with the February billing month.
Sources and scope
Supplier explanations support the general contract and billing points in this guide. Your own agreement and service location determine the terms that apply to you.
Wire & Watt wrote this guide from the sources below. No supplier or utility paid for it or reviewed it. The supplier a business chooses pays us, never the business: how we’re paid.
- CenterPoint Energy Houston Electric Tariff for Retail Delivery Service, 6.1.1.1.3 (revision 23, effective Feb. 26, 2026) (opens in a new tab)
- CenterPoint Energy Houston Electric Tariff for Retail Delivery Service, Rider TEEEF (revised Aug. 15, 2026) and Rider DCRF (revised Sept. 30, 2026) (opens in a new tab)
- CenterPoint Energy: Houston Electric rates and tariffs (opens in a new tab)
- CenterPoint Energy: Houston Electric transmission and distribution (news release, Feb. 17, 2021) (opens in a new tab)
- Oncor Tariff for Retail Delivery Service, 6.1.1.1.2 and 6.1.1.1.3 (revision 12, effective June 1, 2026) (opens in a new tab)