League City households served by CenterPoint saw their delivery charge jump from 4.99 cents per kilowatt-hour in March to 6.41 cents in September, a roughly 28% increase, the Houston Chronicle reported. By Oct. 7, KPRC 2 reported the rate had climbed again to 6.53 cents.

The rapid increases trace to a 2023 state law that lets transmission and distribution utilities seek rate hikes more often and with less regulatory review. The delivery charge covers the cost of moving electricity from the grid to a home. Residents cannot choose a different delivery company the way they shop for an electricity provider.

Residents have no alternative.

The law is Senate Bill 1015, authored by state Sen. Phil King, a Republican, during the 2023 legislative session, according to the Energy and Policy Institute. Before SB 1015, utilities could file for distribution cost increases once a year, and the Public Utility Commission of Texas (PUCT) had 145 days to review each request. The bill cut that review window to 60 days and allowed two filings per year.

CenterPoint, Oncor, AEP Texas, Texas New Mexico Power and SPS all testified or registered in support of the bill, the Energy and Policy Institute reported. CenterPoint spent $25.29 million on legislative matters, including lobbying and regulatory advocacy, from 2021 through 2025, according to annual reports the company filed with the PUCT.

CenterPoint's September rate increase was approved by the PUCT at meetings in July and August, the Houston Chronicle reported. The company's increase far outpaced peers: Oncor's delivery charge rose about 7% over the same period, while AEP Central in Corpus Christi cut its rate by more than 4%.

Ken Head, vice president of Sugar Land-based energy broker Savant Energy, told the Houston Chronicle in September that clients with fixed-rate electricity contracts were confused by the higher bills. Fixed-rate contracts in Texas cover only the electricity charge, not the delivery charge.

"But you can't shop for another transmission and distribution utility," Head told the Chronicle. "That's where the frustration is, because they have a monopoly on us."

Texas New Mexico Power, which also serves parts of the League City area, raised its delivery rate in September to 7.7 cents per kilowatt-hour from 7.4 cents.

CenterPoint serves about 2.9 million customers in the greater Houston area. More than 500 people responded to a KPRC 2 social media post about the rising charges, according to the station's Oct. 7 report.

A separate bill passed during the 2025 legislative session streamlined distribution rate requests into one annual comprehensive regulatory case, the Energy and Policy Institute reported. CenterPoint's next mandatory base rate proceeding must be filed by March 13, 2029, according to company regulatory filings.

Residents who want to weigh in on delivery charges can contact the PUCT or find their state legislators through the Texas Legislature's online search tool.