Oncor Commercial Delivery Charges Change October 4 as Two Riders Move in Opposite Directions Under Its First Unified Tracker

Oncor commercial delivery charges change on October 4, 2026, when Oncor Electric Delivery starts billing temporary Rider DCRF and Rider TCRF rates from its first Unified Tracker Mechanism case, PUCT Docket 59249. For a small business on Secondary Service of 10 kW or less, the DCRF line goes from $0 to $0.006208 per kWh while the TCRF line falls from $0.016974 to $0.013382 per kWh, so one delivery rider rises as the other drops. Demand-billed accounts above 10 kW see a similar split, and accounts billed on 4CP kW see both riders rise.

Key takeaways

Oncor will apply temporary DCRF and TCRF rates to bills rendered on and after October 4, 2026, under PURA 36.216, the Unified Tracker Mechanism added by House Bill 5247. The Public Utility Commission of Texas (PUCT) has not issued a final order.
Secondary Service 10 kW or less: the DCRF rises from $0 to $0.006208 per kWh and the TCRF falls 21.2 percent, from $0.016974 to $0.013382 per kWh. Both bill on kWh, so the two lines net to an increase of $0.002616 per kWh.
Secondary Service above 10 kW: the DCRF rises from $0 to $1.068522 per distribution billing kW. The TCRF falls 8.3 percent per NCP kW but rises 8.0 percent per 4CP kW, so the direction depends on how your premises is billed.
If the final order sets lower rates, PURA 36.216(i) requires Oncor to refund or credit the difference with interest. Commission Staff has already proposed slightly lower DCRF rates for both secondary classes.

What Changes on Oncor's Delivery Charges on October 4, 2026?

Oncor Electric Delivery told the PUCT on August 20, 2026 that it will put the rates it requested in Docket 59249 into effect on a temporary basis for bills rendered on and after October 4, 2026. The case is Oncor's first application under PURA 36.216, which lets an eligible Texas utility fold its distribution cost recovery factor (DCRF), transmission cost recovery factor (TCRF), and interim transmission cost of service updates into one annual filing that Oncor calls the Unified Tracker Mechanism. The DCRF is the delivery rider that recovers distribution investment made since Oncor's last base rate case. The TCRF is the delivery rider that passes changes in wholesale transmission cost through to each retail rate class.

The timeline follows the statute day by day. Oncor filed on April 22, 2026. Section 36.216(g) gives the Commission 120 days to rule, and day 120 was August 20, the same day the State Office of Administrative Hearings held the hearing on the merits in SOAH Docket 473-26-18516. With no final order by then, subsection (i) lets the utility place its requested rates into effect "on a temporary basis not earlier than the 165th day after filing the request," which lands on October 4, as long as retail electric providers get at least 45 days of notice. Oncor sent that notice on August 20, exactly 45 days ahead. Its filing letter, signed by Matthew Troxle, Oncor's Vice President, Regulatory, says Oncor "will implement the rates Oncor requested in this case on a temporary basis on October 4, 2026, pursuant to the provisions of PURA § 36.216(i)."

Oncor is not the first Texas utility to use the mechanism. AEP Texas used the same statute first, in Docket 58315, and an administrative law judge granted AEP Texas temporary rates on March 6, 2026. Primary sources: Oncor's temporary tariff filing, Docket 59249 Item 105, the Docket 59249 filing index, and EnergyChoiceMatters' coverage of the April 22 application.

How Much Do Oncor's DCRF and TCRF Change for Each Commercial Rate Class?

The October 4 change has two moving parts for commercial customers: the DCRF restarts from zero in every rate class, while the TCRF falls for kWh-billed and NCP-billed accounts and rises for accounts billed on 4CP kW. The table compares Oncor's temporary tariff sheets in Item 105 with the rates in effect before October 4.

Rate class	Rider and billing unit	Before October 4	From October 4 (temporary)	Change
Secondary Service 10 kW or less	DCRF per kWh	$0.000000	$0.006208	Up from zero
Secondary Service 10 kW or less	TCRF per kWh	$0.016974	$0.013382	Down 21.2%
Secondary Service above 10 kW	DCRF per distribution billing kW	$0.000000	$1.068522	Up from zero
Secondary Service above 10 kW	TCRF per NCP kW	$5.022675	$4.606104	Down 8.3%
Secondary Service above 10 kW	TCRF per 4CP kW	$6.050798	$6.536625	Up 8.0%
Primary Service above 10 kW, distribution line	TCRF per NCP kW	$6.474156	$3.860885	Down 40.4%
Primary Service above 10 kW, distribution line	TCRF per 4CP kW	$4.055399	$6.207957	Up 53.1%
Primary Service above 10 kW, substation	TCRF per 4CP kW	$4.987143	$5.801711	Up 16.3%
Transmission Service	TCRF per 4CP kW	$3.491759	$6.260839	Up 79.3%
Residential Service (comparison)	TCRF per kWh	$0.019046	$0.021669	Up 13.8%

The "before" TCRF figures are the rates Oncor put in effect on August 1, 2026, and every DCRF rate has been $0.000000 since June 1, 2026. Primary Service DCRF rates restart at $0.698495 per billing kW on distribution line service and $0.180886 per billing kW at substation voltage.

One pattern stands out. Residential TCRF rises 13.8 percent while the small commercial TCRF falls 21.2 percent, the reverse of the split we saw when CenterPoint's September 30 DCRF increase landed harder on Houston commercial classes than on homes.

Which Oncor Commercial Accounts Pay More After October 4, and Which Pay Less?

Most small businesses pay slightly more across the two riders, NCP-billed demand accounts see the TCRF line fall while a DCRF line returns, and 4CP-billed accounts see both lines rise. Which group you fall into depends on your rate class and on the billing unit printed next to the TCRF line on your invoice.

Small businesses on Secondary Service 10 kW or less

A kWh-billed small business pays $0.002616 more per kWh across these two lines, because both riders bill on the same kWh and the $0.006208 DCRF outweighs the $0.003592 TCRF cut. The table shows what that means at three usage levels.

Monthly usage	New DCRF line	TCRF line change	Net change across the two lines
1,000 kWh	+$6.21	-$3.59	+$2.62
2,000 kWh	+$12.42	-$7.18	+$5.23
3,000 kWh	+$18.62	-$10.78	+$7.85

For scale, the median energy rate across the 2,751 active Oncor-area commercial plans we track was 6.36 cents per kWh on October 2, 2026. The net rider change of 0.26 cents per kWh equals about 4.1 percent of that median. These figures cover only the two riders that change on October 4. Oncor's customer, metering, and distribution system charges stay where they are, and so does its Rider IS interim surcharge of $0.002878 per kWh, which runs from August 1 through December 2026.

Demand-billed accounts above 10 kW

Above 10 kW, the DCRF and the TCRF bill on different kW measurements, so we do not net them into one per-kW figure, and you should not either. Each line needs its own number from your invoice.

DCRF, per distribution billing kW. For accounts that peaked above 20 kW in the prior 11 months, Oncor's tariff bills the DCRF on the higher of this month's NCP kW or 80 percent of the highest monthly NCP kW in those 11 months. At 50 billing kW, the returning line adds $53.43 a month.
TCRF, per NCP kW. NCP kW is this month's highest 15-minute demand. Most secondary accounts bill this way, and the rate falls $0.416571 per kW. At 50 NCP kW, the TCRF line drops $20.83 a month.
TCRF, per 4CP kW. Oncor bills any premises that has set an NCP of at least 700 kW in any previous billing month on 4CP kW, the average of its demand during ERCOT's monthly system peaks in June through September of the prior year. That rate rises $0.485827 per kW. At 400 4CP kW, the TCRF line rises $194.33 a month.

Primary and transmission voltage accounts

Large accounts billed on 4CP kW carry the steepest TCRF increases: 79.3 percent for Transmission Service and 53.1 percent for Primary Service on distribution lines. Texas Industrial Energy Consumers (TIEC) argued in its September 4 initial brief that Oncor understated demand growth in the Transmission class, and asked the Commission to add 4,357,249 kW to that class's TCRF billing determinants. A larger billing base would spread the same cost over more kW and lower that class's per-kW rate if the final order adopts it.

Why Do Oncor's Two Delivery Riders Move in Opposite Directions?

The DCRF rises because it restarted from zero on June 1, 2026, while the TCRF falls for most commercial classes because the unified tracker recalculated how transmission costs spread across rate classes. They are separate formulas responding to separate events, and they happen to land on the same bill date.

Oncor's own tariff says the DCRF recovers charges "necessitated by incremental distribution costs not included in the Company's last general rate case proceeding before the Commission," so it starts over each time base rates reset. Oncor's new base rates from Docket 58306 took effect June 1, 2026, and the DCRF table in Oncor's tariff shows $0.000000 for every class from that date. The line is returning, not new. From May 10, 2025 through May 31, 2026, the DCRF for Secondary Service 10 kW or less was $0.006411 per kWh, so the temporary rate sits 3.2 percent below it. The above-10 kW rate of $1.068522 sits 3.1 percent above the prior $1.036859.

The TCRF passes changes in wholesale transmission cost through to retail classes. Section 36.216(d)(2)(A) requires a utility using the mechanism to "update the allocation of costs among customer classes to reflect customer growth." Oncor's temporary TCRF sheet assigns 42.41 percent of the transmission cost change to Residential Service, 30.66 percent to Secondary Service above 10 kW, 12.72 percent to Transmission Service, and 0.91 percent to Secondary Service 10 kW or less. Each class rate also reflects updated billing determinants and a true-up of past collections, which is how one filing can lift residential and transmission-voltage rates while lowering small commercial ones.

Putting the TCRF inside a unified tracker was itself contested. In AEP Texas's case, an administrative law judge's proposal for decision concluded that "inclusion of the TCRF in this application aligns with the statutory language and the Commission's Threshold Order," EnergyChoiceMatters reported on March 24, 2026. Only a utility that operates solely inside ERCOT, was assigned transmission in the Permian Basin reliability plan, and spent more than 300 percent of its annual depreciation on capital in a year can elect the mechanism. That links this filing to the same buildout behind the PUCT's August 28 decision on Oncor's 765 kV Permian Basin lines.

Are the October 4 Oncor Rates Final, and Can You Get a Refund?

No, the October 4 rates are temporary, and PURA 36.216(i) says "the utility shall refund or credit against future bills any difference between the temporary rate and the final rate along with interest at the current interest rate as determined by the commission." Parties filed reply briefs on September 18, 2026, and as of October 2 the docket shows no proposal for decision or final order.

Expect any adjustment to be small for most small businesses. Commission Staff proposed DCRF rates of $0.006153 per kWh for Secondary Service 10 kW or less and $1.059159 per distribution billing kW above 10 kW. If the Commission adopted Staff's numbers, the gap would be 11 cents a month on 2,000 kWh and 47 cents a month on 50 billing kW. Intervenors want more. The Steering Committee of Cities Served by Oncor told the judges in its September 18 reply brief that "the record and hearing on the merits reveal significant and unsettled issues," and TIEC argued that "amounts Oncor has already over-collected must be returned promptly rather than held without interest."

Oncor bills its delivery charges to your retail electric provider, not to you, so a refund reaches your invoice only if your contract passes Oncor's charges through. For a small commercial customer, which PUCT rules define as peak demand under 50 kW, 16 TAC 25.475 lets a fixed-rate product's price change to reflect actual changes in TDU charges, along with a short list of other exceptions such as ERCOT administrative fee changes and changes in law.

What Else Changes on Oncor Commercial Bills Through 2027?

Three more dates matter after October 4. Oncor's Rider IS interim surcharge is scheduled to end after December 2026. On January 1, 2027, every 4CP-billed account's 4CP kW resets to its demand during ERCOT's June through September 2026 peaks, including the July 22 all-time peak that set 2027 transmission charges. And Section 36.216(j) bars Oncor from filing another unified tracker request before April 22, 2027. If Oncor files on that first eligible day, the same 165-day clock would put the next temporary rates at October 4, 2027. The statute runs through December 31, 2035, so an annual reset could become the normal rhythm for Oncor commercial delivery charges.

The TxCP Oncor Rider Check: Three Questions for Your October Bill

Before you read the October 4 change as good or bad news, answer three questions from your own invoice and contract, because the same filing raises one Oncor commercial account's delivery cost and lowers another's.

1. Which Oncor rate class is your meter in?

Your invoice lists Secondary Service 10 kW or less, or Secondary Service greater than 10 kW. Oncor moves a premises to the above-10 kW class after three readings above 10 kW in a rolling 12 months, or after one reading above 12 kW, and moves it back only after 12 consecutive billing months at or below 10 kW.

2. Is your TCRF billed on NCP kW or 4CP kW?

Check the unit next to the TCRF line. NCP-billed accounts see the TCRF fall 8.3 percent per kW. 4CP-billed accounts see it rise 8.0 percent per kW, and their 2027 4CP kW is already set by this summer's peaks.

3. Does your contract pass Oncor's charges through at cost?

If it does, both the October 4 change and any later refund flow to your invoice. If your rate bundles delivery, read the regulatory change clause to see whether your provider can adjust it.

What You Should Do

You can turn the October 4 change into five concrete steps this month, whether your contract renews soon or runs well into 2027.

Compare your September and October invoices line by line, and look for the DCRF as a returning line item.
Multiply each rider's change by its own billing unit, whether kWh, distribution billing kW, NCP kW, or 4CP kW, and keep the kW measurements separate.
Save every invoice from October onward so you can confirm any refund or credit after the final order in Docket 59249.
If you are billed on 4CP kW, note your demand during this summer's peaks, because it fixes your 2027 TCRF charge.
When you shop, ask for quotes that state in writing whether Oncor delivery charges are passed through at cost.

Questions to Ask Your REP or Broker

These four questions get a clear answer on how the October 4 Oncor change and any refund will show up on your bill, and they work for a renewal or a new quote.

Do you pass Oncor's DCRF and TCRF through at cost, or are they bundled into the quoted rate?
If the final order in Docket 59249 sets lower rates, will Oncor's refund or credit appear on our invoice, and in which billing cycle?
Is this account's TCRF billed on NCP kW or 4CP kW, and what 4CP kW will apply to it in 2027?
Does the price you are quoting already reflect Oncor's October 4 temporary rates?

For how Oncor's delivery charges compare with Houston's, see our CenterPoint versus Oncor commercial spread analysis, and follow every docket we track in Daily Market News.

Frequently Asked Questions

What are Oncor's commercial delivery charges changing to on October 4, 2026?

For Secondary Service of 10 kW or less, the DCRF rises from $0 to $0.006208 per kWh and the TCRF falls from $0.016974 to $0.013382 per kWh. Above 10 kW, the DCRF rises from $0 to $1.068522 per distribution billing kW, and the TCRF falls to $4.606104 per NCP kW or rises to $6.536625 per 4CP kW. The rates are temporary under PUCT Docket 59249.

Is Oncor's delivery charge going up for small businesses?

Slightly, across these two riders. For a Secondary Service account of 10 kW or less, the higher DCRF and the lower TCRF net to an increase of $0.002616 per kWh, about $5.23 a month on 2,000 kWh. Oncor's other delivery charges do not change on October 4, 2026.

Will businesses get a refund if Oncor's final rates come in lower?

PURA 36.216(i) requires Oncor to refund or credit any difference between the temporary and final rates, with interest. Oncor bills retail electric providers, so whether the credit reaches a business's invoice depends on how its contract passes TDU charges through.

Does a fixed-rate contract protect a business from the October 4 change?

Not necessarily. Under PUCT rule 16 TAC 25.475, a fixed-rate product for a small commercial customer, meaning peak demand under 50 kW, may change to reflect actual changes in TDU charges. Larger accounts should check the pass-through clause in their contract.