TNMP Commercial Delivery Charges Could Rise February 13, 2027 as Rider DCRF Returns: The Per-kW Math by Rate Class

On September 1, 2026, Texas-New Mexico Power Company (TNMP) asked the Public Utility Commission of Texas (PUCT) to put Rider DCRF back on commercial delivery bills at $2.193214 per billed kW for Secondary Service above 5 kW, up from $0.000000 today, starting February 13, 2027. TNMP commercial delivery charges would rise on the distribution side for every rate class, while the transmission rider moves in opposite directions: down for Secondary accounts above 5 kW, up for small Secondary and Primary accounts. The PUCT takes up a preliminary order in Docket 59944 on November 5, 2026, which sets the issues for hearing and is not a rate decision.

Key numbers at a glance:

• TNMP's proposed Rider DCRF would collect $74,149,927 a year, up from $0 today.
• TNMP's retail Rider TCRF revenue requirement would fall $12,252,926, from $204,558,160 to $192,305,234.
• Together, the two retail riders would collect $61,897,001 a year more than they do now.
• The hearing on the merits is set for January 7, 2027, after the December 30, 2026 statutory 120-day mark.
• In the 2,838 TNMP-territory commercial plans we track, the median published rate was 6.39 cents per kWh on October 30, 2026.

What Happened

TNMP filed its election to adjust rates through a single annual proceeding under PURA Section 36.216 on September 1, 2026, the first such filing by the Lewisville-based utility, which serves more than 280,000 homes and businesses in Texas and is a subsidiary of TXNM Energy. The filing, Docket 59944, handles TNMP's distribution cost recovery factor (Rider DCRF), its transmission cost recovery factor (Rider TCRF) and its wholesale transmission rate (Rate WTS) in one case. A distribution cost recovery factor is a rider that lets a Texas utility recover distribution investment made since its last base rate case without filing a new rate case. A transmission cost recovery factor does the same for changes in transmission costs.

PURA Section 36.216 was added by House Bill 5247 in 2025. It lets a utility whose capital spending tops 300 percent of its annual depreciation, and which was assigned transmission under the Permian Basin reliability plan, file one annual proceeding in place of separate DCRF and TCRF cases. The section expires December 31, 2035. Oncor made the first filing of this kind in Docket 59249, and its temporary rates reached commercial bills rendered on and after October 4, 2026.

TNMP asked for Riders DCRF and TCRF to take effect February 13, 2027, and for Rate WTS to take effect on the earlier of December 30, 2026 or the date of the PUCT's order. The case went to the State Office of Administrative Hearings as SOAH Docket 473-27-02503. SOAH Order No. 1, filed October 7, 2026, set a one-day hearing on the merits by videoconference for January 7, 2027. Texas Industrial Energy Consumers (TIEC) intervened and has moved to compel TNMP's answers to its first requests for information.

Primary sources: TNMP's September 1, 2026 application in Docket 59944, the PUCT's November 5, 2026 open meeting agenda, where item 24 lists the docket for a preliminary order, and SOAH Order No. 1.

Why is TNMP's Rider DCRF at zero right now?

TNMP's Rider DCRF sits at $0.000000 for every customer class because its base rate case, PUCT Docket 58964, reset the DCRF baseline when new base rates took effect on September 13, 2026. A base rate case rolls past distribution investment into base rates, so the rider starts over and recovers only capital added after the new baseline.

That context matters for reading the new numbers. TNMP billed a nonzero DCRF to commercial classes before September 13. The proposed rider is not a new type of charge. It is the distribution rider returning to recover investment made after the rate case baseline, now through the annual tracker rather than a standalone DCRF case. The PUCT's July 30, 2026 order in Docket 58964 set new base rates for bills rendered 45 days later, which is September 13.

How would TNMP commercial delivery charges change by rate class?

TNMP commercial delivery charges would rise on the distribution rider for all four non-residential classes, while the transmission rider falls for Secondary Service above 5 kW and rises for Secondary Service at 5 kW or less and for Primary Service. The table shows the rates as filed in Docket 59944 on September 1, 2026.

Rate class	Rider	Billing unit	Current	Proposed	Change
Secondary, 5 kW or less	DCRF	per kWh	$0.000000	$0.011856	+$0.011856
Secondary, 5 kW or less	TCRF	per kWh	$0.007286	$0.011115	+$0.003829
Secondary, over 5 kW	DCRF	per billed kW	$0.000000	$2.193214	+$2.193214
Secondary, over 5 kW, non-IDR	TCRF	per NCP kW	$6.065473	$4.914086	-$1.151387
Secondary, over 5 kW, IDR	TCRF	per 4CP kW	$8.305264	$6.521341	-$1.783923
Primary	DCRF	per billed kW	$0.000000	$1.506136	+$1.506136
Primary, non-IDR	TCRF	per NCP kW	$3.813481	$4.022819	+$0.209338
Primary, IDR	TCRF	per 4CP kW	$3.191903	$5.480223	+$2.288320
Transmission	DCRF	per actual kW	$0.000000	$0.049382	+$0.049382
Transmission	TCRF	per 4CP kVA	$5.751894	$5.752369	+$0.000475

The sharpest transmission move lands on Primary IDR accounts, whose TCRF would rise 71.7 percent, from $3.191903 to $5.480223 per 4CP kW, even though TNMP's total retail TCRF revenue requirement falls 6.0 percent. Secondary TCRF rates above 5 kW fall 19.0 percent for non-IDR meters and 21.5 percent for IDR meters. Small Secondary meters at 5 kW or less, billed per kWh, see a combined increase of 1.5685 cents per kWh across both riders. TNMP also draws its secondary-service line at 5 kW, where Oncor draws it at 10 kW, so a site with a 6 kW peak is billed per kW in TNMP territory.

What does the per-kW math look like for a typical TNMP account?

For most TNMP commercial accounts, the net rider change is an increase, because the transmission cut for Secondary accounts above 5 kW is smaller per kW than the returning distribution charge and is billed on a different demand figure. The three examples below are illustrative, and each one states its billing assumption.

• Small Secondary meter at 5 kW or less, using 1,200 kWh a month: DCRF adds $14.23 and TCRF adds $4.59, for $18.82 more a month. Both riders bill per kWh, so they add directly.
• Secondary above 5 kW, non-IDR, with 40 kW of billed demand, assuming NCP kW equals billed kW: DCRF adds $87.73 and TCRF falls $46.06, for a net $41.67 more a month.
• Primary IDR with 1,000 kW of billed demand and an assumed 700 kW of 4CP demand: DCRF adds $1,506.14 and TCRF adds $1,601.82, for $3,107.96 more a month.

The break-even math shows why the increase is the likely outcome. For a non-IDR Secondary account, the TCRF cut cancels the new DCRF only if NCP kW runs about 1.9 times billed kW. For an IDR Secondary account, 4CP kW would have to run about 1.23 times billed kW. On most bills, billed demand is at least as large as the account's NCP demand, so Secondary accounts above 5 kW should expect a net increase that is smaller than the DCRF alone suggests.

For scale, the combined 1.5685 cent per kWh change for small Secondary meters equals about a quarter of the 6.39 cent median published commercial rate across the TNMP-territory plans we track.

When would the new TNMP riders reach bills?

Under TNMP's request, the new riders would start February 13, 2027, either as final rates or, if the PUCT has not issued a final order by then, as temporary rates subject to refund. The schedule SOAH adopted runs past the statute's 120-day mark, so the temporary-rate path is the one the schedule itself anticipates.

PURA Section 36.216(g) says the PUCT shall approve an adjustment within 120 days of filing. Subsection (h) requires 45 days' notice to retail electric providers before rates take effect. Under subsection (i), if no final order arrives in that window and notice is given, the utility may charge its requested rates temporarily no earlier than day 165, and must refund or credit any difference from the final rates with interest. In SOAH Order No. 1, the administrative law judge wrote that "PURA § 36.216 expressly contemplates that a final order may not be issued within 120 days and provides a remedy for the utility."

1. September 1, 2026: TNMP files Docket 59944.
2. October 7, 2026: SOAH Order No. 1 adopts the procedural schedule.
3. November 5, 2026: PUCT open meeting, item 24, preliminary order.
4. November 23, 2026: intervenor direct testimony due.
5. December 2, 2026: Commission Staff direct testimony due.
6. December 9, 2026: TNMP rebuttal and cross-rebuttal testimony due.
7. December 30, 2026: day 120, which the schedule labels the 120-day deadline and notice of interim rates.
8. January 7, 2027: hearing on the merits.
9. January 21 and February 4, 2027: initial briefs and reply briefs.
10. February 13, 2027: day 165 and TNMP's requested start date for Riders DCRF and TCRF.

Impact on Commercial Electricity Buyers in Texas

TNMP's delivery riders reach a commercial bill through the TDU terms in your retail contract, so the effect depends less on your energy rate and more on how your contract treats TDU charges, how your meter is billed and when your term renews. We see three channels.

TDU pass-through clauses. Texas commercial contracts generally either pass TDU charges through at cost or fold an estimate into a fixed all-in price. On a pass-through contract, the February 13 change lands on your bill the first cycle it applies. On an all-in price, check whether the contract lets the provider adjust for TDU or regulatory changes.

Meter type and billing units. The same size account can see a different net change depending on whether it has an IDR meter. IDR accounts pay TCRF on 4CP kW, set by demand during ERCOT's four summer coincident peaks, so 2027 TCRF charges partly reflect how a site ran during the summer 2026 peaks.

Refund exposure. If the riders start as temporary rates, a later final order can lower them, and TNMP must refund or credit the difference with interest. That credit is most likely to reach you on a pass-through contract, which is one more reason to know which kind you have.

The TNMP Tracker Check: Three Questions Before You Sign a 2027 Contract

We use three questions to read any TNMP-territory offer while Docket 59944 is open, so a delivery rider change scheduled for February 13, 2027 doesn't get buried inside a price you can't compare.

What You Should Do

You can size your exposure to TNMP's proposed riders this week with your last 12 bills and a calculator, well before the December 30, 2026 notice point and the February 13, 2027 requested start date.

1. Pull your last 12 TNMP-territory bills and note your rate class, meter type, billed kW, and NCP kW or 4CP kW.
2. Multiply your billed kW by the proposed DCRF for your class, then add or subtract the TCRF change from the table above using the right demand figure.
3. Check your contract's TDU clause to see whether delivery charges pass through or are fixed.
4. If your term renews before mid-2027, ask for quotes that state the TNMP rider assumptions in writing.
5. Watch the November 5, 2026 preliminary order and the January 7, 2027 hearing for changes to the filed numbers.

Questions to Ask Your REP or Broker

Before you sign or renew in TNMP territory, these questions show whether a quote accounts for the Docket 59944 riders or leaves you to absorb them after February 13, 2027.

1. Does this quote pass TNMP delivery charges through at cost, or include them in a fixed price?
2. If they are included, which TNMP Rider DCRF and TCRF rates does the price assume?
3. Can the price change if TNMP's riders change by final order or temporary rate?
4. How would a TDU refund or credit after a final order appear on my bill?
5. Is my meter billed as IDR or non-IDR, and which demand figure sets my TCRF?

For more on how these trackers play out, see our coverage of Oncor's first unified tracker and CenterPoint's September 30 DCRF increase. See every commercial plan we track in our data download.

Subscribe to Weekly Market Insights, free. We publish a data-driven rate report every Monday.

For the full picture, see our Texas commercial electricity rates overview.

Frequently Asked Questions

Did the PUCT approve new TNMP commercial delivery charges on November 5, 2026?

No. The PUCT's November 5, 2026 agenda lists Docket 59944 as item 24 for a preliminary order, which sets the issues for the SOAH hearing. The hearing on the merits is set for January 7, 2027, and TNMP has asked for its Rider DCRF and Rider TCRF changes to take effect February 13, 2027.

How much would Rider DCRF add for a TNMP commercial account?

As filed on September 1, 2026, Rider DCRF would rise from $0.000000 to $0.011856 per kWh for Secondary Service at 5 kW or less, $2.193214 per billed kW for Secondary Service above 5 kW, $1.506136 per billed kW for Primary Service and $0.049382 per actual kW for Transmission Service.

Can temporary TNMP delivery rates be refunded?

Yes. Under PURA Section 36.216, if the PUCT has not issued a final order within 120 days (December 30, 2026) and TNMP gives retail electric providers 45 days' notice, TNMP may charge its requested rates temporarily no earlier than day 165, February 13, 2027, and must refund or credit any difference from the final rates with interest.

Does a fixed-rate contract protect a business from TNMP delivery charge changes?

Only if the contract fixes TDU charges too. If your contract passes TDU charges through at cost, a February 13, 2027 rider change shows up on your bill directly. If TDU charges are folded into an all-in price, check whether the contract allows adjustments for regulatory changes.