How the Index is Calculated - TrueCost Electric Portal

How the Index is Calculated

How the Index is Calculated

Component Plans

The CenterPoint Energy Electric Price Index (the Index) is a numerical average of a broad selection of publicly available residential electric plans with the following characteristics:

  • Contract term of six months, one year or two years, as applicable
  • Fixed rate during the contract term
  • Less than 100 percent renewable content
  • Available in one of the regions of Texas where customers have retail choice
  • Open to all residential customers and not subject to other availability restrictions (i.e. employees, friends and family plans, usage thresholds or similar programs)

The data is collected each business day and the Index is published weekly on this website each Thursday.

The Index excludes plans that may meet the stated criteria but that CenterPoint Energy believes do not represent the market due to unusual fees, limited availability or other special circumstances. For example, we do not incorporate plans that require the use of solar panels or other generating devices.


Service Areas

The Index is calculated for all Texas service areas where electric choice is offerred. These territories include:

  • CenterPoint Energy Houston Electric - Houston
  • Oncor - Dallas/Ft. Worth
  • American Electric Power (AEP) Central - Corpus Christi/Laredo/McAllen/San Benito/Victoria
  • Sharyland Utilities - Brady/Celeste/Colorado City/Mission/McAllen/Stanton
  • American Electric Power (AEP) North - Abilene/Alpine/San Angelo/Vernon
  • Texas-New Mexico Power (TNMP) - North-Central/Gulf Coast/West

To learn more about service areas, click here


Assumed Usage

The total annual and monthly cost with respect to this group of plans is calculated based on a typical customer profile as determined by the Public Utility Commission of Texas (PUCT). The profile is for a customer who uses 12,000 kilowatt-hours (kWh) per year (or an average of 1,000 kWh per month), and this varies by service area. Each service territory's typical customer profile is shown in the following graphs.

Monthly Usage for the CenterPoint Energy Houston Electric Service Area

Monthly Usage for the Oncor Service Area Map

Monthly Usage for the AEP Central/Sharyland Service Area

Monthly Usage for the AEP North Service Area

Monthly Usage for the TNMP Service Area

We then apply the calculated values for these profiles for each applicable plan, including all recurring charges and fees. The resulting cost is a monthly average so that the seasonal effects are eliminated, which is similar to signing up for a plan with "average billing" or "budget billing."


What's not included

CenterPoint Energy does not include these non-recurring fees in the calculations:

  • Termination fees
  • Fees not included in the default rate (cancelled check fees, disconnect/reconnect fees, customer service fees)
  • Incentives or rewards programs added as customer enticements

Other Indexes

Besides the primary index number (calculated from one-year plans) we perform identical calculations for the pool of applicable 6-month and two-year plans.


Houston Chronicle

The Index, as it appears in the Houston Chronicle, shows applicable one-year plan prices in cents per-kilowatt-hour. Published on Sundays, the Index includes electric rates through the Thursday preceding publication. The following week's chart then picks up the data from the prior week's business days. Holiday schedules may also affect what data is included and excluded.

The Index as it appears in the Chronicle also includes the highest-priced and lowest-priced plans for each week. The conversion between average monthly cost and per-kilowatt hour cost is conveniently divided by 1,000.

Example: $104.07/month = 10.407 cents/kilowatt hour

For comparison purposes, the average monthly cost of a 24,000 kilowatt-hour/year (or an average of 2,000 kWh per month) customer is also included. These calculations are based on the following usage profile (also created by the PUCT):

Monthly Usage


Green Premium

The green premium is defined as the average monthly cost for 100 percent renewable plans of a given contract length (for example, one year), less the average monthly cost for plans with less than 100 percent renewable content and based on the assumed usage profile for a 12,000 per-kilowatt-hour/year user. The green premium may be thought of as an answer to the question: "On average, how much more per month would the average monthly payment be for a 100-percent-renewable version of a plan with the same contract length?"

Example:
100% renewable plan at $104.07/month
less Non-100% renewable plan at $100.00/month
Green Premium of $ 4.07/month


CenterPoint Energy makes no warranties regarding the Index.

CenterPoint Energy may provide analysis and commentary on the Index through blogs and on its website, and may include forward-looking statements about energy markets (Information). This Information is intended only to assist you with decisions related to choosing a residential electric plan and does not consider your unique personal situation. While we aim to provide valuable insight into the competitive retail electric market, CENTERPOINT ENERGY MAKES NO WARRANTIES, EXPRESS OR IMPLIED, OR REPRESENTATIONS AS TO THE ACCURACY OF THIS INFORMATION AND ASSUMES NO LIABILITY OR RESPONSIBILITY FOR ANY ERRORS OR OMISSIONS IN THE INFORMATION BEING PRESENTED. YOU EXPRESSLY AGREE THAT IT IS YOUR SOLE RESPONSIBILITY TO INDEPENDENTLY EVALUATE THE ACCURACY, CORRECTNESS OR COMPLETENESS OF THE INFORMATION PRIOR TO MAKING A DECISION REGARDING YOUR RETAIL ELECTRIC PLAN AND PROVIDER.

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