Electric rates may increase due to update in Texas law – NBC 5 Dallas-Fort Worth

All eyes on the power grid lately as winter quickly approaches.

Oil and gas producers across the Texas said they have taken steps to protect their equipment in case of severe weather.  Operators are required to share their emergency plans with the Texas Railroad Commission by Friday.

It’s one of the new measures taken since the winter storm of 2021 that plunged the state into darkness and without heat for days.

Another effort is a renewed emphasis on enough infrastructure to serve the growing state. That part may cost you more on your next bill, in part, thanks to a little known law.

Oncor – which owns power lines across North Texas – is asking for more than $53 million from the electricity providers that use the power lines it owns. It would be the second rate hike in just a matter of months.

Oncor is able to do this because of a new law passed earlier this year by the state legislature. It allows distribution companies like Oncor and others across the state to request up to two rate increases a year, up from just one.

The law update was meant to hasten the process in rate increase request cases to save power distribution companies money, which would presumably translate into lower rates paid by customers. Requests now have just 60 days to evaluate rate increase requests.

On Thursday, the Public Utility Commission of Texas is expected to approve Oncor’s latest request – they already approved the first one, a request submitted in May, in early November.

Most likely, the electric companies are going to pass those rate hikes down to customers. If that happens, the average monthly electric bill would increase by nearly $3 with these two requests combined, according to filings by the state and federal government.

Those rate increases are expected to take effect by the end of December, according to an Oncor spokesperson.

The spokesperson told the Dallas Morning News that cities served by Oncor and the electric companies agreed on the rate and said that even with the slight increase, Oncor’s rates are still among the lowest along all transmission and distribution utilities in Texas.

The company has also stressed this year that these rate hikes are tied to upgrades and investments meant to make North Texas electricity more reliable as the population here continues to grow. Oncor has said it plans to spend over $19 billion over the next 4 years.