TNMP Stipulation Would Not Place 50% of Residential Revenue Requirement in Fixed Charge

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December 13, 2010

A stipulation in Texas-New Mexico Power's rate case would increase the residential customer charge but not implement the significant change in rate design originally sought by TNMP which would have placed 50% of the total revenue requirement in a fixed monthly charge (38480).

The settlement was signed by TNMP, PUCT Staff, the Office of Public Utility Counsel, Texas Industrial Energy Consumers, the State of Texas, and several cities with original jurisdiction.  TXU Energy and Reliant Energy do not oppose the settlement.

Under the stipulation, residential distribution service charges would be as follows:

Residential                                             Current         New
Customer Charge (per ESI ID per month)     $1.40            $4.00
Metering Charge (per ESI ID per month)      $2.20             $1.25
Transmission System Charge ($/kWh)        $0.004980      $0.00
Distribution System Charge ($/kWh)           $0.017578      $0.017347

As suggested by the rates above, TNMP would remove wholesale transmission costs from its base rates under the stipulation, and recover all such transmission costs through the Transmission Cost Recovery Factor (rates provided below).

The stipulation provides that, prior to its next general rate case, TNMP will perform a load profile study for its specific customers and service areas, for use in allocating costs among customer classes.

TNMP is to also continue the existing demand ratchet waivers for the Secondary Service > 5 kW and Primary Service classes under the settlement.  TNMP, in a proposal supported by Staff, had originally proposed to remove the demand ratchet waiver for Municipal Pumping customers with a peak annual demand of more than 20 kW in the prior 12-month period.  This change would have applied the same rules to Municipal Pumping customers regarding ratchets as those applied to other customers -- specifically, that only customers with a maximum demand equal to or less than 20 kW are eligible for a waiver of the ratchet.

TNMP's proposed Storm Hardening Cost Recovery Factor (SHCRF) Rider would not be approved under the stipulation.  Based on the pro forma tariff leafs, there would apparently be no changes in discretionary service charges under the stipulation.  

Under the stipulation, distribution service charges for the Secondary Service Less Than Or Equal To 5 kW class would be as follows:

Secondary <= 5 kW                                    Current       New
Customer Charge (per ESI ID per month)        $2.50            $2.50
Metering Charge (per ESI ID per month)         $2.20            $2.20
Transmission System Charge ($/kWh)           $0.007789     $0.00
Distribution System Charge ($/kWh)              $0.029612     $0.033323

Distribution service charges for the Secondary Service Greater Than 5 kW class would be as follows:

Secondary > 5 kW                                                 Current          New
Customer Charge (per ESI ID per month)                     $4.25            $2.56
Metering Charge (per ESI ID per month)                       $13.30          $10.74
Transmission System Charge
  Non-IDR Metered (per NCP kW)                                $1.7206        $0.00
  IDR Metered (per 4CP kW)                                       $1.1200        $0.00
Distribution System Charge (per NCP Billing kW)
  Non-IDR Metered                                                     $5.50           $6.0981
  IDR Metered                                                            $5.50           $5.2808

Distribution service charges for the Primary Service class would be as follows:

Primary                                                                  Current          New
Customer Charge (per ESI ID per month)                     $22.00          $34.50
Metering Charge (per ESI ID per month)                       $265.00        $204.98
Transmission System Charge
  Non-IDR Metered (per NCP kW)                                $1.0520        $0.00
  IDR Metered (per 4CP kW)                                       $2.5966        $0.00
Distribution System Charge (per NCP Billing kW)
  Non-IDR Metered                                                     $4.80           $4.7102
  IDR Metered                                                            $4.80           $5.1286

Charges under the retail delivery tariff for Transmission Service voltage levels would be as follows:

Transmission Voltage                                           Current          New
Customer Charge (per ESI ID per month)                  $180.00            $214.51
Metering Charge (per ESI ID per month)                   $3,994.47          $1,751.67
Transmission System Charge (Per 4CP kVA)           $1.800              $0.00
Distribution System Charge (Per 4CP kVA)              $0.0399            $0.00

The Transmission Cost Recovery Factor would be established as follows:

TCRF                                                              Current               New
Residential ($/kWh)                                          $0.000603       $0.006450
Secondary <= 5 kW ($/kWh)                             $0.001314       $0.004318
Secondary Service > 5 kW
  Non IDR Metered (Per NCP kW)                      $0.138251        $1.5194
  IDR Metered (Per 4CP kW)                             $0.220103        $2.0500
Primary Service
  Non IDR Metered (Per NCP kW)                      $0.130902        $2.0622
  IDR Metered (Per 4CP kW)                              $0.196127        $2.2538
Transmission Service (Per 4CP kVA)                  $0.218034        $2.0663

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