The electricity rate you signed up with includes a portion of the delivery charges that your local transmission and distribution utility (TDU) bills us for delivering power to your home reliably. In September 2012, the Public Utility Commission (PUC) began approving rate increases for these delivery charges. As stated in your original EFL, we reserve the right to pass these rate increases through to you at no mark up. If you signed up or renewed prior to March 2013, you may notice a line item on your bill to account for these increased delivery charges from your utility company. After March 2013, the increase will be included in your total delivery charges from the utility company.
The charge that increased is called the Transmission Cost Recovery Factor or TCRF and it increased by varying amounts based on your utility provider. These providers include:
We are either passing through all or a portion of this new rate increase depending on your contract terms.
For simplicity, we've combined this new pass through to any pre-existing pass through on your contract. Some customers in Oncor already had a $0.0014 per kilowatt hour pass through from a previous tariff change on their current contract. Some customers in Centerpoint already had a $0.0019 per kilowatt hour pass through from a previous tariff change on their current contract.
It will continue to be passed through along with the rest of the utility charges for all contracts starting after March 2013. For contract prior to March 2013, this pass through amount will vary depending on the rate changes approved typically every March 1st and/or September 1st depending on the utility.
Since this new pass through did not hit your contract until late October, we are allowed to back bill for usage with meter reads on and beyond September 1, 2012 (when the new TCRF took effect) and the date the new pass through took effect on your contract.