proposed rate case structure
Understand how thenew rates affect your gas bill

Your gas dollar

CenterPoint Energy’s proposed Basic and Delivery charges recover only the cost of utility distribution service – about 40 percent of the bill.  The wholesale cost of gas – about 60 percent of the bill – is passed through to customers with no markup.

 


How the new rates will affect monthly bills

The proposed rate changes will affect individual monthly bills differently depending on natural gas use and customer group. Bills will also vary because the wholesale cost of natural gas changes each month. Customers’ bills contain three parts: Basic Charge, Delivery Charge and cost of gas, which is passed through directly to customers without mark-up. The proposed Basic Charges and Delivery Charges recover only the cost of providing utility distribution service to our customers – about 40 percent of the bill. They do not include wholesale gas costs – about 60 percent of the bill.

The chart illustrates changes in residential customers’ average annual bill under CenterPoint Energy’s rate filing.

 

 

 


Changes proposed for residential monthly Basic Charge and Delivery Charge

Customers pay for natural gas delivery service in two ways. The first way is a monthly Basic Charge, which recovers a portion of fixed costs that do not change with the amount of natural gas used. The second way is the Delivery Charge, a per therm charge which recovers the costs not recovered in the Basic Charge. The total Delivery Charge amount changes each month with the amount of natural gas used.

CenterPoint Energy is proposing to increase the monthly Basic Charge and decrease the per therm Delivery Charge for most of its customers. CenterPoint Energy proposes to increase the Basic Charge for residential customers from $8.00 to $15 a month and to decrease the Delivery Charge from the current $0.17127 per therm (which includes the $0.00490 per therm for the Gas Affordability Service Program) to $0.12943 per therm.

  

 
Proposed revenue decoupling rate adjustments

CenterPoint Energy has proposed a Decoupling Rider that, if approved, will allow the Company to automatically adjust its rates for residential, commercial and small industrial customers each year. These annual rate adjustments, if approved, will allow CenterPoint Energy to match the actual revenue the Company receives each year from these customers to the amount of revenue allowed in this rate case. The purpose of these rate adjustments is to reduce the Company’s disincentive to promote energy conservation and energy efficiency and stabilize the Company’s revenues.