Oncor April 2026 Base Rate Order and October TCRF Update: North Texas Delivery Changes

ERCOT billing: supply vs delivery

Texas cannabis cultivators in Oncor territory shop energy supply from a Retail Electric Provider (REP) but pay Oncor for delivery [oncor-rate-case]. Your REP invoice includes pass-through TDU charges itemized from Oncor's tariff. Base rate and TCRF changes affect every customer regardless of REP.

Oncor's base rate order effective April 17, 2026 adjusted delivery revenue [oncor-rate-case]. A Transmission Cost Recovery Factor (TCRF) update effective October 4, 2026 changed transmission pass-through charges [oncor-rate-case].

What the base rate order changed

Oncor's rate case page documents the April 2026 base rate order affecting distribution delivery charges [oncor-rate-case]. Components typically include:

Charge	Description	Set by
Distribution delivery	Local wires, transformers	Base rate order [oncor-rate-case]
Meter charge	Monthly service	Tariff
TCRF	ERCOT transmission pass-through	Updated Oct 4 [oncor-rate-case]
Energy (supply)	kWh from REP	REP contract

A cultivator comparing REP quotes must add Oncor pass-through charges to evaluate true all-in cost. REPs display TDU fees separately on invoices per PUCT rules.

TCRF and transmission: the October update

The TCRF update effective October 4, 2026 passes through ERCOT transmission costs to delivery customers [oncor-rate-case]. Transmission costs also connect to 4CP (Four Coincident Peak) allocation during June through September [ercot-4cp-mechanics].

Facilities that peak during ERCOT's four highest system intervals pay a larger share of transmission costs the following year [ercot-4cp-mechanics]. Indoor grows with afternoon lighting and HVAC overlap are vulnerable to 4CP contribution.

EIA reported Texas average commercial price at 10.89 cents per kWh in mid-2026 [eia-epm-5-6-a]. North Texas effective rates for demand-metered grows often exceed the state average.

Worked example: Dallas-area cultivation facility

Assume a 25,000 sq ft indoor grow in Oncor territory at 450 kW peak and 540,000 kWh monthly use. Illustration only.

Line item	Assumption	Monthly
REP supply energy	540,000 kWh x $0.065/kWh	$35,100
Oncor delivery (kWh)	540,000 x ~$0.038/kWh	$20,520
Oncor demand	450 kW x ~$8/kW	$3,600
TCRF / transmission	Pass-through per tariff	~$2,700
Total		~$61,920

April base rate and October TCRF changes adjust the Oncor lines, not the REP supply rate [oncor-rate-case]. A 5% delivery increase adds roughly $1,300 per month in this illustration.

4CP season overlap with rate changes

June through September is ERCOT 4CP season [ercot-4cp-mechanics]. The same months when cultivation HVAC load peaks are the months that set next year's transmission allocation. See PUCT 4CP to 12CP proposal for potential methodology changes.

Scheduling flower-room loads away from 3 to 6 PM summer peaks reduces 4CP contribution [ercot-4cp-mechanics]. Base rate and TCRF changes are tariff-level; 4CP is behavior-level. Both affect total delivery cost.

Shopping REPs vs fighting delivery

Lever	What it controls
REP contract	Supply energy price, contract term
Oncor tariff	Delivery, TCRF (not shoppable) [oncor-rate-case]
4CP management	Transmission allocation next year [ercot-4cp-mechanics]
Demand management	kW charges on TDU bill

Texas low-THC and medical cannabis operators in Oncor territory should review REP contracts before summer peaks and verify TDU pass-through fee updates on October bills [oncor-rate-case].

Reading your bill after April and October

Compare March vs April 2026 bills for base rate order impacts [oncor-rate-case]. Compare September vs October for TCRF changes [oncor-rate-case]. Look for:

• Updated TDU delivery charge per kWh
• Changed demand charge rate per kW
• New TCRF line item amount
• REP supply rate (should be unchanged unless contract rolled)

North Texas cannabis context

Texas expanded its low-THC program with new dispensing organization licenses in 2026. New facilities in Oncor territory energize on the same TDU tariff as existing commercial load. Budget Oncor pass-through separately from REP supply quotes.

See Texas cultivation facility energy and how to switch electricity suppliers in Texas.

How REPs display Oncor pass-through fees

PUCT rules require REPs to itemize TDU charges on customer invoices [oncor-rate-case]. Look for lines labeled "Oncor Delivery Charge," "TDU Fee," or similar. The per-kWh TDU fee updates when base rate or TCRF orders take effect [oncor-rate-case].

If your REP quote shows an "all-in" price without TDU breakdown, ask for the TDU fee schedule separately. A low energy rate with rising TDU pass-through can cost more than a slightly higher energy rate with stable TDU fees.

Voltage level and rate schedule matter

Large cultivation facilities may take service at primary voltage if they install dedicated transformers [oncor-rate-case]. Primary voltage schedules carry different demand and energy rates than secondary service. A facility upgrading from 499 kW secondary to 500 kW primary should model both the rate schedule change and the Oncor base rate order impact [oncor-rate-case].

Work with your electrical engineer and REP before requesting a voltage class change. Transformer costs are capital expense, but primary service may reduce per-kW demand charges enough to pay back over several years.

Seasonal load shape and April vs October changes

April base rate changes hit the same month 4CP season begins [ercot-4cp-mechanics]. October TCRF updates land after 4CP season ends but apply to bills during fall harvest and ramp-up cycles for some operators [oncor-rate-case].

Pull April and October 2026 bills side by side. Note whether the TDU kWh fee, kW fee, or TCRF line moved. Supply energy from your REP should be unchanged unless your contract rolled to a new term in the same month.

Contract renewal checklist for Oncor customers

Before renewing a REP contract:

1. Confirm TDU pass-through fee in the quote matches current Oncor tariff [oncor-rate-case].
2. Ask whether the REP absorbs or passes future TCRF changes during the contract term.
3. Verify early termination fee if you plan to expand load and re-shop.
4. Align contract end date with fall or spring when REP pricing historically softens.
5. Budget 4CP management for the following summer regardless of REP choice [ercot-4cp-mechanics].

TCRF and base rate interaction

Oncor's Transmission Cost Recovery Factor update on October 4 adjusts delivery for ERCOT transmission investments separately from the April base rate order [oncor-rate-case]. Texas cultivators on retail supply contracts still pay Oncor delivery. Add both effective dates to your calendar when modeling 2026 and 2027 pro formas.

Switching REPs without changing Oncor delivery

Texas cultivators change Retail Electric Providers without changing the Transmission and Distribution Utility [oncor-rate-case]. Your Oncor account number stays the same. The REP switch replaces the energy rate on your invoice. TDU pass-through fees update when Oncor base rate or TCRF orders take effect regardless of which REP you use [oncor-rate-case].

When shopping REPs in spring 2026, ask each bidder to quote the current Oncor TDU fee schedule attached to the offer [oncor-rate-case]. A one cent per kWh spread between REP quotes matters less if one bidder uses stale TDU assumptions from before the April base rate order.

July 2026 ERCOT peak context

ERCOT set record system demand in summer 2026, which increased congestion and real-time price spikes across North Texas [ercot-4cp-mechanics]. REP supply rates for index contracts floated higher on hot afternoons. Fixed REP contracts insulated customers from those spikes but priced summer risk into the fixed rate at signing [eia-epm-5-6-a].

Oncor delivery and TCRF charges are separate from REP energy [oncor-rate-case]. A cultivator could pay stable TDU fees while the REP line swings on index pricing. Match contract type to the bill line you are trying to stabilize.

Primary vs secondary voltage service

Facilities above 500 kW sometimes evaluate primary voltage service with a dedicated transformer [oncor-rate-case]. Primary schedules may offer lower demand charges per kW than secondary service at the same peak [oncor-rate-case]. Transformer capital cost must pay back through demand savings over five to seven years.

Request a load study from Oncor before requesting voltage class change. The April 2026 base rate order applies different rate tables to primary and secondary service [oncor-rate-case]. Model both before committing capital.

Low-THC program expansion in Oncor territory

Texas expanded dispensing organization licenses under HB 46 in 2026 [oncor-rate-case]. New facilities in Dallas-Fort Worth and surrounding counties energize on Oncor's TDU tariff with REP supply chosen separately [eia-epm-5-6-a]. Budget TDU pass-through from the April base rate order and October TCRF update before selecting the lowest REP energy quote [oncor-rate-case].

Summer 2026 bill review checklist

After July 2026 ERCOT peaks, review whether your REP invoice TDU fee matched Oncor's published tariff [oncor-rate-case]. REPs must pass through approved TDU rates [oncor-rate-case]. Discrepancies between quoted TDU fees and billed TDU fees are a common REP shopping error [ercot-4cp-mechanics].

Texas cultivators cannot reduce Oncor delivery by switching REPs [oncor-rate-case]. They can reduce REP supply cost and manage 4CP transmission contribution separately [ercot-4cp-mechanics]. Total cost optimization requires attacking both stacks, not shopping REPs alone [eia-epm-5-6-a].

Download Oncor's current tariff sheet from the rate case page after each effective date and update your REP comparison spreadsheet with the new TDU fee [oncor-rate-case].