Skip to content
RateBase
← All states

Texas

Regulatory bodies
PUCTRRC
Regional grid
Multiple market regionsERCOT · MISO · SPP
Open matters
2 open cases
Operating utilities
36 covered utilities

Rate-case process

How utility rates are set in Texas

Split oversight between a competitive ERCOT electric market and cost-based natural-gas utility regulation.

In most of ERCOT, generation and retail supply are competitive while regulated transmission and distribution utilities provide delivery service under PUCT rules. Natural-gas distribution rates are overseen separately by municipalities and the Railroad Commission, including general rate cases and infrastructure adjustments.

Read the official framework ↗

Wholesale power market

ERCOT

Form EIA-861 2024 identifies this utility jurisdiction with ERCOT; the date records the dataset year, not the original membership start.

Market coverage source ↗
MISO

Form EIA-861 2024 identifies this utility jurisdiction with MISO; the date records the dataset year, not the original membership start.

Market coverage source ↗
SPP

Form EIA-861 2024 identifies this utility jurisdiction with SPP; the date records the dataset year, not the original membership start.

Market coverage source ↗

State rules

Base-rate reviews and adjustment mechanisms in Texas

Full base-rate reviews set the broad revenue and return framework. Recurring riders, clauses, and reconciliations can change narrower charges between those reviews. These are governing patterns, not filing-date forecasts.

Electric service

Full base-rate review

Electric · PUCT-regulated electric transmission and distribution utilities

At least every four years

A regulated electric utility generally must initiate a comprehensive base-rate proceeding at least once every four years, subject to the statutory waiver process.

Rate period: Historical test year in the comprehensive rate filing.

Governing rule ↗

Between full reviews

Electric

Distribution Cost Recovery Factor

Up to twice per year

A DCRF updates distribution rates for eligible capital investment placed in service since the last comprehensive rate case. The investment is reconciled in a later base-rate proceeding.

Governing source ↗

Natural-gas service

Full base-rate review

Natural gas · Gas utilities using an interim rate adjustment or GRIP

Annual adjustment · full case within five years

A gas utility using the interim infrastructure adjustment files annually and must complete a comprehensive cost-of-service rate case by the fifth anniversary of its first adjustment.

Rate period: The comprehensive case resets the investment, return, depreciation, tax, and allocation benchmarks used by later interim adjustments.

Governing rule ↗

Between full reviews

Natural gas

Interim Rate Adjustment / GRIP

Annual

A gas utility may update base rates for incremental infrastructure without a full cost-of-service package. Annual filings and earnings monitoring continue until the required comprehensive review.

Governing source ↗

Natural gas

Purchased gas adjustment

Tariff-specific pass-through

Purchased-gas clauses pass the commodity cost of gas through to customers separately from the utility's distribution base rates, with the calculation and update process set in the approved tariff.

Governing source ↗

Utility commissions

Composition
The PUCT may have five commissioners, appointed to staggered six-year terms. The current official roster lists four members.
Appointment
The governor appoints commissioners subject to confirmation by the Texas Senate.
Leadership
The governor designates the presiding officer to serve at the governor's pleasure.

Current commission

Official roster ↗
MemberRoleCurrent termSelected byTerm source
Thomas J. GleesonChairmanTerm endpoint not published

Appointed chairman in 2024 and confirmed by the Senate in 2025.

Gov. Greg Abbott
Courtney K. HjaltmanCommissionerTerm endpoint not published

The official biography retains an expired initial term date while the current roster continues to list her; no current endpoint is published.

Gov. Greg Abbott
Kathleen JacksonCommissionerTerm expires Sep 1, 2027

Served as interim chair from June 2023 through January 2024.

Gov. Greg Abbott
Morgan JohnsonCommissionerTerm expires Sep 1, 2031

Appointed in October 2025.

Gov. Greg Abbott
Composition
Three commissioners are elected statewide to staggered six-year terms.
Appointment
Texas voters elect commissioners statewide. The governor may temporarily fill a vacancy until the next general election.
Leadership
The three commissioners choose one member to serve as chair.

Current commission

Official roster ↗
MemberRoleCurrent termSelected byTerm source
Jim WrightChairmanTerm endpoint not published

First took office January 4, 2021; current term endpoint is not published on the reviewed biography.

Texas voters
Christi CraddickCommissionerTerm endpoint not published

First took office December 17, 2012; current term endpoint is not published on the reviewed biography.

Texas voters
Wayne ChristianCommissionerTerm endpoint not published

First took office January 3, 2017; current term endpoint is not published on the reviewed biography.

Texas voters

Current activity

Proceedings and operating utilities

Open rate cases

View all →
UtilityDocketStageNext material event
El Paso Electric57568commission considerationNot scheduled
TNMP58964settlement pendingNot scheduled

Upcoming material dates

Recent outcomes

UtilityDecisionAuthorized change
OncorApr 17, 2026

58306

$560M
Atmos Energy Mid-TexJun 17, 2025

OS-24-00019196

Not stated
CenterPoint Houston ElectricMar 13, 2025

56211

Not stated
Rockin M GasFeb 19, 2025

OS-24-00017711

$0.14M
West Texas Gas UtilityJan 29, 2025

OS-24-00017816

Not stated
AEP TexasNov 17, 2024

56165

Not stated
CenterPoint EntexJun 25, 2024

OS-23-00015513

Not stated

Large load

grid interconnection rules

ERCOT interconnection rules plus Batch Zero study process

PUCT-approved ERCOT rules establish modeling and interconnection requirements for large loads, including visibility standards beginning at 25 MW. The newer Batch Zero process studies qualified projects of 75 MW or more together and is now moving through applicant classification and transmission planning.

Tracked systems
1 systems
Published tariffs
0

Utility implementation

UtilityOperating scopePublished instrument
Oncorelectric distributionNot published

Proceedings and policy