Will Temporary TDU Rates Hurt You?
A bill making its way through the Texas Legislature could change how electric transmission rates work. House Bill 3157 would let transmission and distribution utilities (TDUs) raise their fees while waiting for state approval. This means a TDU could raise rates at any time. In that case, Texas power customers would have to pay higher costs until the Public Utility Commission of Texas (PUC) makes a final decision. If the PUC rejects the increase, the TDU must refund or credit customers. However, people would still pay more upfront. This could impact how much Texans pay for power through their electric provider.
What Are Temporary TDU Rates?
Right now, TDUs must wait until the PUC reviews and approves any rate changes. HB 3157 would change that. If a TDU raises rates, retail electric providers pass those costs to customers. This appears in the “TDU Delivery Charges” or similarly named section on your power bill.
Even if the PUC later denies the increase, Texans would have already paid more for several months. The money would be refunded, but that doesn’t change that Texans had to shell out more cash needlessly. TDUs get the money they purportedly need right away, and PUC later says whether or not it agrees.
How Would This Bill Affect Customers?
If this bill becomes law, electric bills could go up more often. Under HB 3157, TDUs could raise rates, and customers would have to pay higher electricity prices right away. Although TDUs would have to refund any overcharges, customers might not get their money back for months. So, this could make your budgeting for electricity harder.
Plus, customers would get angry at their TDUs for taking money they shouldn’t have earned. Sure, it all gets fixed on the back end. But these extra charges never should have occurred.
When Would This Bill Take Effect?
If two-thirds of both legislative chambers approve HB 3157, it would take effect immediately. Otherwise, it would start on September 1, 2025. Either way, the bill would require the governor’s signature upon passage. So, even though this bill has a long way to go, Texans should keep an eye on it to see how it might impact their electricity costs.
For now, customers can make budgeting for their electricity easier when they shop for competitive electricity plans. Choosing a plan at http://www.texaselectricityratings.com with fixed rates can help protect against sudden cost increases. So, even if TDU rates rise, your retail price remains the same. Stay informed and compare options to get the best deal.