The PUCT approved
without modification Staff's proposal for adoption to amend the Transmission Cost
Recovery Factor (TCRF) rule, which will allow distribution service providers to include
in their TCRF charged to REPs an adjustment that reflects the under- or over-recovered
TCRF transmission costs accumulated over a prescribed six-month period (Only in Matters,
Additionally, the rule requires an adjustment to the TCRF every six months, while
the prior rule provided the distribution service provider with the discretion to
revise the TCRF every six months.
Specifically, the adopted rule requires distribution service providers to update
their TCRF twice per year, on March 1 and September 1, to pass through the wholesale
transmission cost changes billed by a Transmission Service Provider.
For the March 1 update, the distribution service provider will be required to file
its TCRF no later than December 1, and for the September 1 update, no later than
Within 45 days after a distribution service provider files a request to update its
TCRF, the Commission shall issue an order establishing the amount of the revised
TCRF and suspend the effective date of the revised TCRF as necessary so that the
new TCRF charges will take effect on March 1 or September 1, as applicable. This
provision is meant to provide certainty to REPs with respect to TCRF charges.