Transmission Charges

Transmission access charges are set by the Public Utility Commission of Texas (PUC), a cost that is passed through directly to members without additional charges. Electric transmission costs have nearly doubled in the past seven years, and impact every PEC member. But, together we can reduce these costs.

What are Transmission Cost of Service Pass-Through charges?

The Transmission Cost of Service (TCOS) Pass-Through charge on your electric bill is used to recover the cost PEC pays to access the statewide transmission system. PEC passes on the cost to use transmission infrastructure as a direct passthrough, meaning there are no additional costs added.

Residential Farm & Ranch and Small Power members, the current TCOS Pass-Through Charge is $0.01686 per kWh. This charge will be updated twice a year, on June 1 and October 1, to align with forecasted costs. For details, please see section 500.1.9 of the Tariff and Business Rules.

Large Power members, find more information about transmission charges on the Large Power page.

What determines transmission access costs?

Transmission access charges are set by the Public Utility Commission of Texas (PUCT) based on energy demand on the cooperative’s system during four 15-minute summer peak events, or 4 Coincident Peaks (4CP). PEC’s system demand is determined by averaging all members’ summer energy consumption during the 4CP during each of the four summer months — June, July, August, and September.

Each month, the PUCT updates the transmission access rate. As a result, the higher PEC’s energy demand is during the 4CP events, the more the cooperative will be charged in transmission charges the following year. The PUCT’s approved rate is multiplied by PEC’s 4CP to calculate our monthly transmission access charges, and that cost is passed directly through to members.

Conversely, by lowering our energy use during a 4CP event, we are able to enjoy a lower rate since we are effectively using fewer grid resources. Learn ways to take the power into your own hands and reduce transmission costs »

When do these 4CP events occur?

We can predict that a hot day might produce a peak event, but we can’t be sure until after it’s happened. That’s why it’s important to pitch in together to shift our electric use away from the high demand time of 2 to 7 p.m., June through September — what we call Power Rush Hour.

How much could I save?

Take a look at your monthly bill. For most residential members, the transmission costs comprise about 8-12% of the total due.

Take heart — if you and your fellow PEC members all take on Power Rush Hour together, you can reduce that cost on your bills.