Texas TCUP Dispensary Retail Energy: Three Licensed Stores, REP Choice, and Small-Load Delivery

TCUP retail, not an open dispensary market

Unlike Colorado or Michigan, Texas does not have hundreds of independent retail licenses. Each TCUP dispensing organization is vertically integrated: cultivation, processing, and dispensing under one DPS license [dps-tcup]. HB 46 satellite storefronts let a licensed organization open additional patient pickup locations without a separate license [tlo-hb46], but each storefront is still a TCUP-regulated low-THC medical site.

Retail load profile

Load	Connected kW	Notes
Sales floor LED	6 to 10	Patient consultation areas
HVAC	12 to 18	Summer cooling in Texas
Security	2 to 4	Continuous cameras and access control
Refrigeration	4 to 8	Product storage for low-THC inventory
IT and POS	1 to 2	Minor
Typical peak	12 to 22 kW

Assume a 2,000 sq ft TCUP satellite storefront with 6,500 kWh monthly usage in the Oncor territory [oncor-tariff]. Texas averages 2,809 cooling degree days statewide, so HVAC runs heavily from April through October [noaa-cag-texas].

Secondary service threshold

Oncor effective June 1, 2026 [oncor-tariff]:

Schedule	Threshold	Demand billing
Secondary ≤ 10 kW	Small retail	Energy-only delivery
Secondary > 10 kW	Larger retail	80% ratchet on billing kW

A store at 12 kW peak crosses into demand-metered territory with ratchet exposure [oncor-tariff]. A premise stays on the greater-than-10 kW schedule until it has 12 consecutive months below 10 kW [oncor-tariff]. Commission HVAC in stages during buildout to avoid a single startup spike that locks in demand billing for a year.

CenterPoint Houston Electric uses a similar secondary structure with NCP billing demand and an 80% ratchet [ercot-retail-market].

Worked monthly cost example

Assume 6,500 kWh, 11 kW peak (just above 10 kW), fixed REP at 9 cents/kWh [eia-epm-5-6-a] [ercot-retail-market]:

Line item	Monthly cost
REP energy (6,500 x $0.09)	$585
TDU delivery pass-through (estimate)	~$180
Distribution demand (11 kW, estimate)	~$45
Total estimate	~$810

Texas commercial electricity averaged 8.66 cents per kWh in June 2026 [eia-epm-5-6-a]. Small commercial REPs on PowerToChoose.org may offer fixed rates in the 8 to 11 cent range for low-usage accounts [ercot-retail-market].

If the same store stays below 10 kW peak, delivery is energy-only and the bill drops to roughly $750 to $780 with no demand line item [oncor-tariff].

Choosing a REP for small retail

Every ERCOT choice-area customer must select a REP [ercot-retail-market]. For a dispensary under 10 kW:

• Compare fixed 12-month offers on PowerToChoose.org
• Confirm TDU pass-through charges are listed separately
• Avoid contracts with high early termination fees if the satellite location is new under HB 46 [tlo-hb46]
• Read auto-renewal language; Texas has no default supply to fall back on if a contract lapses [ercot-retail-market]

Calendar renewal 60 days before expiration. Unlike Ohio or Illinois, there is no utility Standard Service Offer to compare against [ercot-retail-market].

Humidity and territory differences

Texas averages 2,809 cooling degree days statewide [noaa-cag-texas]. Retail HVAC load varies by metro:

Territory	TDU	HVAC note
Houston	CenterPoint	Highest latent load; dehumidification runs May through September [noaa-cag-texas]
Dallas-Fort Worth	Oncor	Humid summers, drier winters
San Antonio	CPS Energy	No REP choice; bundled municipal rates
Austin	Austin Energy	No REP choice
Corpus Christi	AEP Texas Central	Coastal humidity, lower square-foot cost than Houston

A Houston satellite dispensary under HB 46 may use 15 to 25 percent more kWh per square foot than a Dallas site with the same floor plan [noaa-cag-texas].

Security and compliance loads

TCUP dispensaries require DPS-compliant security systems: cameras, alarm monitoring, and access control run 24/7. Budget 2 to 4 kW for security and IT infrastructure on top of HVAC. Product storage refrigerators add another 3 to 6 kW depending on inventory volume.

These loads are continuous but modest. The risk is simultaneous startup during a hot afternoon pushing peak demand above the 10 kW Oncor breakpoint [oncor-tariff].

Conditional licensees opening satellite stores

Twelve conditional TCUP licensees from DPS Phase I and Phase II selections may add satellite storefronts after final approval [dps-tcup-phase-2]. Each new ESI ID requires TDU new-service application and REP enrollment before the first patient sale [ercot-retail-market]. Energize with a fixed REP contract in place; there is no default supply period.

Comparing supply on a thin retail margin

Texas commercial power at 8.66 cents per kWh is among the lowest statewide averages in the country [eia-epm-5-6-a]. For a dispensary billing 6,000 to 8,000 kWh per month, a one-cent improvement on REP supply saves $60 to $80 monthly with no capex. That matters on a low-THC medical storefront with limited patient volume compared to adult-use markets.

Run PowerToChoose.org comparisons annually even if the current contract feels acceptable. REP markets reprice frequently in ERCOT [ercot-retail-market].

TCUP satellite storefronts and Secondary Service threshold

HB 46 permitted satellite storefront locations for dispensing organizations [tlo-hb46]. Each new satellite meter in ERCOT choice areas must enroll with a REP; there is no default supply [ercot-retail-market]. Small satellite stores often stay on Secondary Service Less Than or Equal to 10 kW with energy-only delivery [oncor-tariff].

Load profile	Typical peak kW	Oncor schedule
Kiosk-style satellite	8 to 12	Greater than 10 kW if peak exceeds threshold [oncor-tariff]
Full retail with vault	15 to 25	Greater than 10 kW with ratchet [oncor-tariff]

One month above 10 kW NCP can move the account to the ratchet class for up to twelve months [oncor-tariff]. Size vault refrigeration and HVAC soft starts to stay under 10 kW where business model allows [oncor-tariff].

PowerToChoose limits for TCUP retail

PowerToChoose.org lists residential and small-commercial REP offers [ercot-retail-market]. TCUP retail with demand above small-commercial size is priced individually off ERCOT wholesale plus TDU pass-throughs [ercot-retail-market]. Compare all-in cents per kWh (total bill divided by kWh) when evaluating quotes, not supply rate alone [oncor-tariff] [eia-epm-5-6-a].

Worked annual cost: TCUP satellite under 10 kW

Assume a Houston satellite dispensary at 8,500 kWh monthly on Secondary Service Less Than or Equal to 10 kW with REP energy at 8.66 cents/kWh and TDU delivery pass-through at 2.5 cents/kWh (inputs) [oncor-tariff] [eia-epm-5-6-a] [ercot-retail-market].

Line	Monthly	Annual
REP energy	$736	$8,832
TDU delivery energy	$213	$2,550
Demand	$0	$0
Total	~$949	~$11,382

All-in about 11.1 cents/kWh versus 8.66 cent EIA commercial average [eia-epm-5-6-a]. One month at 12 kW NCP moves the account to Secondary Greater Than 10 kW with ratchet for up to twelve months [oncor-tariff]. Soft-start HVAC and staggered vault compressor schedules keep peaks under the threshold [oncor-tariff].

GA-56 enforcement and extended retail hours

Executive Order GA-56 (September 10, 2025) directed DSHS and TABC to enforce age limits and labeling on hemp THC products [tx-tribune-ga56]. Hemp retail stores may run longer hours than TCUP dispensaries, increasing HVAC and lighting kWh [tx-tribune-hemp-impasse]. Both customer types must choose REPs in ERCOT choice areas with no default supply [ercot-retail-market]. Model peak kW on opening week before equipment schedules lock in [oncor-tariff].

REP consolidated billing vs split invoices

Some REPs bill TDU pass-throughs on the same invoice; others send separate TDU charges [ercot-retail-market]. Compare all-in cents per kWh using total dollars divided by meter kWh regardless of invoice format [ercot-retail-market] [oncor-tariff]. TCUP satellite stores with low load factor rarely qualify for the lowest PowerToChoose teaser rates; request commercial quotes with twelve months of usage [ercot-retail-market] [dps-tcup].

Refrigeration and the 10 kW Oncor line

Walk-in vault compressors starting while HVAC is at full load cause the 15-minute NCP spike that crosses Secondary Service Greater Than 10 kW [oncor-tariff]. Stagger compressor starts and use soft starters on condensing units to hold peaks under 10 kW where product safety allows [oncor-tariff] [noaa-cag-texas].

Security and IT baseload on small meters

POS systems, cameras, and access control run continuously on most TCUP and hemp retail sites [dps-tcup] [tx-tribune-hemp-impasse]. That baseload adds kWh without always adding peak kW if HVAC and vault compressors use staggered starts [oncor-tariff]. Review morning startup sequences before the first month sets Oncor billing demand above 10 kW [oncor-tariff].

Where to go next

• Texas hub for TCUP overview.
• Commercial electricity rates.
• How to switch REPs in Texas.
• Dispensary retail energy costs.
• Utility rate classes explained.

Confirm current Oncor tariff breakpoints before signing a REP contract.