Texas · CenterPoint
CenterPoint delivery charges, and why they are billed in kVA
CenterPoint bills for delivering electricity to your premises, separately from the electricity itself. You cannot shop it — CenterPoint owns the only wires in Houston. Above 10 kVA the charge is $4.893378 per billing kVA, and the unit matters: kVA includes reactive power, so equipment with a poor power factor is billed for capacity it never turns into work.
Every figure here is read from the CenterPoint Energy Houston Electric Tariff for Retail Delivery Service, §6.1.1.1, revision 23, effective February 26, 2026. Reviewed at the start of each month.
The three service classes
| Class | Fixed per month | Distribution charge | Billed on |
|---|---|---|---|
| Residential | $4.90 | $0.023240 | kWh |
| Secondary, 10 kVA or less | $4.96 | $0.017893 | kWh |
| Secondary, above 10 kVA | $13.41 – $151.41 | $4.893378 | Billing kVA |
Crossing 10 kVA does not scale your bill up. It changes what the bill is computed from — kilowatt-hours become kilovolt-amperes, consumption becomes capacity. A quiet month no longer means a small bill, because you are charged for the peak you reached, not the energy you used.
Why kVA and not kW
Kilowatts measure the power your equipment converts into useful work. Kilovolt-amperes measure the total the grid has to carry to deliver it. The gap between the two is reactive power — current that flows out and back without doing anything, drawn by motors, compressors, transformers and older lighting ballasts.
The ratio between them is your power factor. At unity they are identical. At 0.80 you are billed for a quarter more than you use. CenterPoint bills the larger number.
| Power factor | 80 kW billed as | Distribution per month | Extra per year |
|---|---|---|---|
| 1.00 | 80.0 kVA | $391.47 | — |
| 0.90 | 88.9 kVA | $434.97 | $522 |
| 0.80 | 100.0 kVA | $489.34 | $1174 |
| 0.70 | 114.3 kVA | $559.24 | $2013 |
This is one of the very few delivery-side levers that genuinely exists. You cannot negotiate a regulated rate, but you can reduce the quantity it is applied to — power factor correction equipment does exactly that, and the payback is calculable from the rate above rather than from a vendor’s estimate.
What the meter decides
The largest swing in CenterPoint’s commercial tariff is not the distribution rate. It is the fixed charge, which depends on whether you are billed as IDR — interval data recorder — metered.
| Charge | Standard meter | IDR metered |
|---|---|---|
| Customer charge | $4.14 | $64.72 |
| Metering charge | $9.27 | $86.69 |
| Total per month | $13.41 | $151.41 |
That is 11.3 times higher, about $1656 a year, before a single kilovolt-ampere is billed. And the tariff applies the IDR rates to any customer who has ever established 700 kVA in a previous billing month — whether or not an IDR meter is actually installed.
What CenterPoint does not do
Two things are worth naming for their absence, because they are central at Oncor and a business reading Dallas-based advice will look for them here.
- No demand ratchet. Billing kVA for the distribution charge is your peak in the current month, full stop. At Oncor, above 25% load factor, one summer spike is billed for the next eleven months.
- No load-factor banding. CenterPoint's distribution rate is flat. Oncor's varies by 42% depending on how evenly you use power across the year.
The one rule both share: cross the threshold once and you stay on the higher class for at least 12 months. Both tariffs say so independently.
What to check on your bill
- Find whether you are billed in kWh or kVA. kVA means you are on the over-10 kVA class and everything on this page applies.
- Look at your customer and metering charges. Near $13 means a standard meter; near $151 means you are on IDR rates, and it is worth knowing why.
- Work out your power factor if your bill or meter reports it. Below about 0.90 there is a calculable case for correction equipment.
- Check for the municipal franchise credit if you hold a municipal account inside city limits — $0.644820 per billing kVA.
- If you crossed 10 kVA once and have been below since, count the months. Twelve puts you back on the cheaper class.
For reference, the distribution charge alone at a few sizes: $245 a month at 50 kVA, $489 at 100 kVA, $1468 at 300 kVA.
Send us a CenterPoint bill and we’ll read it against the tariffCommon questions
What is a CenterPoint delivery charge?
It is what CenterPoint Energy Houston Electric bills for carrying electricity over its poles, wires and meters to your premises. CenterPoint does not sell electricity — your retail provider does, and passes the delivery charge through on the same bill. The rate is approved by the Public Utility Commission of Texas and is identical whichever retailer you use.
Can I switch away from CenterPoint?
No. CenterPoint owns the wires across the Houston area and there is no competing set. Switching retail provider changes the energy half of your bill; the delivery half stays with CenterPoint regardless.
Why does my bill say kVA instead of kW?
Because CenterPoint bills commercial demand in kilovolt-amperes, which is total apparent power — the useful power your equipment converts to work, plus the reactive power it draws and returns. Motors, compressors and older lighting ballasts all draw reactive power. Oncor, in the Dallas area, bills in kW instead, so a Houston business has an exposure a Dallas one does not.
How much does a poor power factor cost me?
At CenterPoint's distribution rate of $4.893378 per kVA, 80 kW of useful load at a 0.80 power factor is billed as 100 kVA — $97.87 a month more than the same work at unity, or about $1174 a year. Correcting power factor is one of the few delivery-side levers that actually exists, because it reduces the billed quantity rather than the rate.
Does CenterPoint have a demand ratchet?
No, and this is a real difference from Oncor. CenterPoint's billing kVA for the distribution charge is simply your highest 15-minute demand in the current month. Oncor, above 25% load factor, bills the greater of this month's peak or 80% of your highest peak in the previous eleven months. A single spike costs you one month in Houston and up to a year in Dallas.
Why is my customer charge so much higher than another business's?
Because of the meter. The fixed charges for the over-10 kVA class are $13.41 a month on a standard meter and $151.41 on an IDR meter — 11.3 times higher, a difference of about $1656 a year. The tariff applies the IDR rates to any customer who has ever established 700 kVA in a previous billing month, whether or not an IDR meter is physically fitted.
What happens when my business goes over 10 kVA?
The basis of the bill changes. Below the threshold the distribution charge is billed per kilowatt-hour, at $0.017893. Above it, it is billed per kVA of demand, at $4.893378, and the fixed charges go from $4.96 to $13.41. Two businesses using identical kilowatt-hours can pay very different delivery charges once one of them crosses.
If I drop back below 10 kVA, does the cheaper rate return?
Not for at least 12 months. The tariff places a customer whose peak exceeds 10 kVA on the higher schedule for a period of not less than twelve months. Oncor's tariff carries the same twelve-month rule, which makes it a Texas convention rather than a quirk of either company.
Is there a credit I might be missing?
If your premises sits inside the city limits of a municipality that charges CenterPoint a franchise fee, and you hold a municipal account under a signed franchise agreement, the tariff provides a credit of $0.644820 per billing kVA. It applies to municipal accounts specifically, not to every business inside city limits.