CenterPoint Energy Delivery: TDU Charges, Service Territory & Houston Commercial Electricity Guide
Direct Answer
CenterPoint Energy is the Transmission and Distribution Utility (TDU) serving the Greater Houston area, including Houston, Sugar Land, The Woodlands, and Pasadena. CenterPoint maintains the power grid but does not sell electricity. Houston businesses in the CenterPoint service territory can choose from 60+ licensed REPs to supply their electricity at competitive rates.
CenterPoint Energy Delivery: Quick Facts
| Full Name | CenterPoint Energy Houston Electric, LLC |
| Type | Transmission and Distribution Utility (TDU) |
| Customers Served | ~2.8 million metered customers in the Greater Houston area |
| Service Territory | Greater Houston area — Houston, Sugar Land, The Woodlands, Pasadena, Baytown, and surrounding communities |
| Market | ERCOT deregulated market |
| Regulator | Public Utility Commission of Texas (PUCT) |
| Outage Reporting | 713-207-2222 |
| Sells Electricity? | No — CenterPoint only delivers electricity. REPs sell supply. |
What Is CenterPoint Energy Delivery?
CenterPoint Energy is a regulated Transmission and Distribution Utility (TDU) serving the Greater Houston area. Under Texas's deregulated electricity market, CenterPoint's role is to own and maintain the physical infrastructure — power lines, transformers, substations, and smart meters — that delivers electricity from the ERCOT grid to your business's meter.
Because CenterPoint is a regulated monopoly in its service territory, you cannot choose a different TDU. What you can choose is your Retail Electric Provider (REP), which determines the supply rate you pay for the electricity itself. Power My Business compares supply offers from 60+ licensed REPs operating in the CenterPoint service territory to find the most competitive rate for your Houston-area business.
Key distinction: CenterPoint charges are fixed by PUCT regulation and are identical regardless of your REP. Only your supply charges (the REP portion of your bill) are negotiable.
How CenterPoint TDU Charges Appear on Your Bill
Commercial customers in the CenterPoint service territory typically see the following charge components on their monthly electricity bill. These charges are set by PUCT and passed through by your REP — they are not marked up or discounted by your REP.
| Charge Component | Unit | Description |
|---|---|---|
| Customer Charge | $/month | Fixed monthly charge per meter, regardless of usage |
| Distribution Demand Charge | $/kW | Based on your peak demand (kW) during the billing period |
| Transmission Demand Charge | $/kW | Based on your peak demand during ERCOT system peak hours (4CP) |
| Distribution Energy Charge | $/kWh | Per kWh charge for energy delivered through distribution lines |
| Transmission Energy Charge | $/kWh | Per kWh charge for energy transmitted at high voltage |
| Metering Charge | $/month | Smart meter data collection and communication |
Note: Exact CenterPoint TDU rates vary by rate class. Contact Power My Business for a current breakdown specific to your business's rate class.
CenterPoint Service Territory: Major Cities
CenterPoint Energy serves the Greater Houston metropolitan area. The following cities are in the CenterPoint service territory and are eligible for competitive REP rate comparison.
Not sure if your business is in the CenterPoint service territory? Check your electricity bill for "CenterPoint Energy" under delivery charges. Power My Business can verify your service territory at no cost.
How CenterPoint-Area Businesses Can Reduce Their Electricity Costs
Compare REP Supply Rates
The supply portion of your bill is fully negotiable. Power My Business compares offers from 60+ licensed REPs to find the most competitive rate for your Houston-area business.
Optimize Your Demand Profile
CenterPoint's demand charges are based on your peak kW demand during the billing period. Shifting high-load equipment to off-peak hours can reduce your demand charge significantly.
Manage Your 4CP Exposure
The transmission demand charge on your CenterPoint bill is based on your demand during ERCOT's four coincident peak (4CP) hours each summer. Reducing load during these hours can lower your transmission charges.
Avoid Auto-Renewal Pricing
When a commercial electricity contract expires without renewal, most REPs automatically roll the account to a month-to-month rate that is typically 30–50% higher than a negotiated fixed rate. Start your renewal process 90–120 days before expiration.
Frequently Asked Questions About CenterPoint Energy Delivery
What is CenterPoint Energy Delivery?+
CenterPoint Energy is the Transmission and Distribution Utility (TDU) serving the Greater Houston area, including Houston, Sugar Land, The Woodlands, and Pasadena. CenterPoint owns and maintains the power lines, meters, and substations but does not sell electricity — that is done by licensed Retail Electric Providers (REPs).
Can I choose my electricity provider if I'm in the CenterPoint service territory?+
Yes. If your business is in the CenterPoint service territory, you are in the ERCOT deregulated market and can choose from 60+ licensed REPs. CenterPoint delivers the electricity regardless of which REP you choose.
What are CenterPoint's TDU delivery charges for commercial customers?+
CenterPoint's commercial TDU charges include a monthly customer charge, a distribution demand charge per kW, a transmission demand charge per kW, and an energy delivery charge per kWh. These charges are set by PUCT and are the same regardless of which REP you choose.
Does CenterPoint handle outages and power restoration?+
Yes. CenterPoint is responsible for all power line maintenance, outage response, and power restoration in its service territory. If you experience an outage, contact CenterPoint directly at 713-207-2222, not your REP.
How do I know if my business is in the CenterPoint service territory?+
Your electricity bill lists your TDU. If it says 'CenterPoint Energy' under delivery charges, you are in the CenterPoint territory. Businesses in Houston, Sugar Land, The Woodlands, and the Greater Houston area are typically served by CenterPoint.
What is the difference between CenterPoint charges and REP charges on my bill?+
Your commercial electricity bill has two main components: CenterPoint TDU charges (delivery) and REP charges (supply). CenterPoint charges cover maintaining the power grid. REP charges cover the electricity itself. You can reduce REP charges by comparing rates — but CenterPoint TDU charges are fixed.
Related Resources
TDU Charges by Provider
Compare Oncor, CenterPoint, AEP, and TNMP delivery charges
Demand Charges Explained
How demand charges work and how to reduce them
What Is 4CP?
How ERCOT's coincident peak affects your CenterPoint transmission charge
Houston Commercial Electricity
Rate comparison for Houston businesses in the CenterPoint territory
Warehouse Electricity Texas
Electricity solutions for Houston-area warehouses and distribution centers
Contract Renewal Guide
How to avoid rollover pricing when your contract expires
Compare REP Rates in the CenterPoint Service Territory
Power My Business is a PUCT-licensed broker (#BR240245). We compare 60+ REPs for Houston-area businesses at no direct cost.
PUCT Broker Registration #BR240245 | Power My Business is not a REP, utility, or solar installer. Broker compensation paid by the REP selected.