CoServ is an electric distribution utility that delivers electricity to nearly 300,000 electric meters throughout North Texas.
As of March 1, 2023, CoServ is 100 percent in control of its power purchases from a mix of suppliers, including power plants and renewable energy sources across the state. That gives CoServ the flexibility to meet its energy needs while saving money for our Members.
Previously, CoServ purchased the majority of its power from Brazos Electric Power Cooperative. CoServ’s contractual obligation to purchase wholesale power from Brazos ended on Feb. 28, 2023 as part of the Brazos bankruptcy settlement. Learn more about the bankruptcy here.
Brazos still owns the transmission lines and substations that deliver power to CoServ. CoServ owns the local distribution lines and equipment that deliver power to our Members.
This article will explain where your power comes from and how the cost is determined.
So how is your bill calculated?
First, let’s break down your base rate by following its journey to your home, business or school. The electricity is generated at power plants, including natural gas, coal, wind turbines, solar farms and other sources. Power generation costs make up about 65 percent of your electricity rate.
Next, the power travels on Brazos' transmission lines and into the substations. The transmission and substation cost makes up about 15 percent of your electric rate.
From the substation, the electricity travels on CoServ's local distribution system, which is made up of wires, transformers, switch gears and other equipment, until it reaches its destination. This is known as the local delivery and makes up about 20 percent of your electricity rate.
As the cost of electricity goes up and down, those changes are passed through to CoServ and we pass those on to our Members. As an electric co-op, we never mark electricity up for profit.
The wholesale price of electricity changes based on a number of factors, the biggest being the price of natural gas.
Because our base rate doesn’t change, CoServ has to account for these changes in wholesale electricity cost by adjusting the Power Cost Recovery Factor (PCRF) on your bill each month. If the PCRF is a negative number, it subtracts from your electric rate, lowering the cost of power. If the PCRF is a positive number, it adds it to your electric rate, raising the cost of power.
The Securitized Charges Recovery Factor (SCRF) is used to calculate amounts that CoServ must recover from Members to repay and administer the securitized bonds issued by CoServ under Texas Senate Bill 1580. The proceeds of these bonds were used to pay qualified costs and expenses relating to Winter Storm Uri in February 2021. At least every six months, the amount that is charged on a per kWh basis will be reviewed, and adjusted as needed, to ensure CoServ is collecting the appropriate amounts.
Base rate -/+ PCRF + SCRF = Your energy charge
For more on the SCRF, the Brazos bankruptcy and the path forward, click here.
For more on CoServ electric rates, click here.
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