The Texas Public Utility Commission updates EECRF charges on an annual basis.
One charge on your home electric bill that may have escaped your notice is for something called the “EECRF.” This discrete charge pays your local utility for costs it incurs for creating energy efficiency programs.
The EECRF (the initials stand for “Energy Efficiency Cost Recovery Factor”) is one among a number of interim rate charges authorized by the Texas Legislature. These charges can be assessed by utilities periodically between more extensive rate case reviews. Another such charge includes the Distribution Cost Recovery Factor, or “DCRF,” authorized by the Legislature in 2011. You can read about recent DCRF charges here and here.
The Texas Public Utility Commission updates EECRF charges on an annual basis. The state’s principal transmission and distribution utilities then include them in rates along with other expenses associated with the wires portion of electric service.
The major T&D utilities in areas of Texas with retail electric completion are Oncor, CenterPoint, AEP and Texas New Mexico Power. The PUC has now authorized updated EECRFs for each of them, with the new charges set to take effect on March 1 of next year. These new EECRF charges are the result of negotiated settlements between utilities and city interveners, including TCAP’s sister organization, the Steering Committee of Cities Served by Oncor.
Here’s a summary:
- The PUC on Sept. 10 approved the EECRF for Oncor, the utility serving Dallas, Fort Worth and other areas of Central and North Texas. Beginning next year, the utility will collect annually from customers $64,782,106 for its EECRF. For residential customers using 1,000 kilowatt hours per month, the EECRF will add about 86 cents to bills. You can find more about this EECRF on the PUC website, at docket 50886.
- The PUC on Oct. 16 approved the EECRF for CenterPoint Houston, allowing the utility to collect from customers $48,796,013 annually. For residential customers using 1,000 kWh, the EECRF will add about 76 cents to bills. More information about this EECRF can be found on the PUC website, docket 50908.
- The PUC on Sept. 24 approved the EECRF for AEP Texas, allowing the utility to collect annually from customers $20,431,462. For residential customers using 1,000 kWh, the charge amounts to about 93 cents. AEP serves customers around Corpus Christi and parts of South Texas. You can find more information about this EECRF on the PUC website, at docket 50892.
- The PUC on Sept. 24 approved the EECRF for Texas New Mexico Power, allowing the utility to collect annually from its customers $5,921,913. For residential customers using 1,000 kWh monthly, the EECRF charge amounts to about $1.22.
Is a policy analyst for TCAP, a coalition of cities and other political subdivisions that purchase electricity in the deregulated market for their own governmental use. Because high energy costs can impact municipal budgets and the ability to fund essential services, TCAP, as part of its mission, actively promotes affordable energy policies. High energy prices also place a burden on local businesses and home consumers.