ERCOT System Administration Fee Increase

ERCOT System Administration Fee Increase

Rapid Power Management is dedicated to educating our clients to make smarter energy decisions.  Therefore, we want to pass along this important update about a possible increase to your electricity bill.

ERCOT System Administration Fee Increase

ERCOT, the electric grid operator for much of Texas, has been allowed to increase a fee to the Retail Electric Providers (REPs) which may affect your electricity bill this year.  On October 8, 2015 the Public Utility Commission agreed to raise the “System Administration Fee” by 19.3%. The fee increase went into effect on January 1, 2016 and is expected to generate nearly $34.4 million in additional revenue this year.  The per-kWh cost of this fee increase is $0.00009.  This fee was last increased in 2014.

How will this affect you?

Rapid Power Management is starting to see some REPs pass along the fee increase to the end user utilizing the “change in law” provision of their retail electricity contracts.  Please note that electricity contracts almost always include a “change in law” provision allowing the REPs to pass along any additional costs incurred as a result of a change from a governing authority.

The table below details your annual cost increase based on an estimated annual kWh usage number:


Please feel free to reach out to your Energy Manager at any time with questions or concerns.  As always, thank you for the opportunity to serve you and your business.

-Rapid Power Management

/ Energy Buzz, Texas

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