Large Load Tariff Exposure

Tier 2 — Risk Score 1.0
Criteria: Risk score (lower better). Tier 1 ≤ 1.0 (standard industrial tariff, no large-load rider, no pending cases) · Tier 2 1.0–3.0 (moderate cost-share or min load) · Fail ≥ 3.0 (heavy take-or-pay, customer-paid upgrades, or active rulemaking)
Source: HIFLD Electric Service Territories · 2026-05-19
Site Assessment
⚠ Tier 2
Risk Score: 1.0 / 3.0 threshold
Primary TDSP
CenterPoint Energy IOU
Houston metro / Brazoria County TDSP
Market Structure
ERCOT Deregulated
Competitive retail · Regulated T&D
Applicable Tariff
Rate PRIM / TRANS
Standard industrial delivery — no large-load rider
Minimum Load Factor
N/A
No minimum load factor in TDSP tariff
Pending PUCT Cases
2 Active
PUCT 56725 · PUCT 55927
Upgrade Cost Share
Socialized + CIAC
4CP socialized transmission; dedicated facility CIAC

Summary

Risk Factor Breakdown

Risk Factor Score Assessment
Minimum Load Factor 0.0 No minimum requirement in CenterPoint TDSP tariff
Demand Charge Premium 0.0 No premium over standard industrial delivery rates
Upgrade Cost Share 0.25 Standard CIAC + socialized 4CP transmission; dedicated facility costs at customer expense
Pending Regulatory Cases 0.75 2 active PUCT proceedings (PUCT 56725, PUCT 55927)
Total Risk Score 1.0 Tier 2

Serving Utilities (20-mile radius)

Utility Name Type Role Large-Load Rider Min Load Factor Upgrade Cost
AEP TEXAS CENTRAL COMPANY INVESTOR OWNED Alternate TDSP None N/A Standard CIAC
CENTERPOINT ENERGY INVESTOR OWNED Primary TDSP None — deregulated market; no large-load rider N/A Socialized (4CP) + dedicated facility CIAC
WHARTON COUNTY ELEC COOP, INC COOPERATIVE Cooperative None N/A Member contribution
JACKSON ELECTRIC COOP, INC - (TX) COOPERATIVE Cooperative None N/A Member contribution
TEXAS-NEW MEXICO POWER CO INVESTOR OWNED Alternate TDSP None N/A Standard CIAC

Analysis

The the site is located in southern Brazoria County, Texas, within the ERCOT deregulated electricity market. CenterPoint Energy Houston Electric serves as the primary Transmission and Distribution Service Provider (TDSP) for this area, with Texas-New Mexico Power and AEP Texas Central providing alternate TDSP coverage. Two electric cooperatives (Jackson Electric and Wharton County Electric) also have overlapping service territories.

Texas's deregulated market structure is favorable for large loads: there is no traditional "large-load rider" or special tariff schedule requiring minimum load factors or take-or-pay provisions. CenterPoint's applicable delivery tariffs are Rate PRIM (Primary Service, for loads at 4 kV+ distribution voltage) and Rate TRANS (Transmission Service, for loads at 69 kV+ transmission voltage). Generation is procured competitively through Retail Electric Providers (REPs) at market-based rates. Transmission costs are allocated via ERCOT's Four Coincident Peak (4CP) methodology, which large loads can manage through strategic load curtailment during summer peak periods.

Two active PUCT proceedings introduce moderate regulatory uncertainty. PUCT Project No. 56725 is a rulemaking addressing transmission cost allocation for Large Flexible Loads (LFLs), which could modify how large data center and industrial loads pay for transmission infrastructure. PUCT Docket No. 55927 is CenterPoint Energy's distribution rate case, which could adjust delivery charge levels for all customer classes. Standard Contribution in Aid of Construction (CIAC) provisions require customer-funded dedicated distribution infrastructure upgrades, though this is typical for greenfield large-load development nationwide.

Tariff rate schedules and pending case details require direct review of PUCT filings. Outcomes of PUCT Project 56725 and Docket 55927 may change large load cost allocation methodology and delivery rates.

Next Steps

  • Confirm CenterPoint Energy as the specific TDSP for the site address and obtain current Rate PRIM / Rate TRANS delivery rate schedules
  • Monitor PUCT Project No. 56725 for potential changes to large load transmission cost allocation
  • Track PUCT Docket No. 55927 (CenterPoint rate case) for delivery charge adjustments
  • Engage REPs for competitive generation pricing and evaluate 4CP management strategies to reduce transmission cost exposure
  • Request CenterPoint CIAC estimate for site-specific distribution infrastructure requirements
  • Evaluate cooperative service territory options (Jackson Electric, Wharton County Electric) for potential cost advantages

Sources