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Party Seeks Introduction of Electric Choice at El Paso Electric, in Texas Proceeding Reviewing New EPE Power Plants
An intervenor is seeking the introduction of electric choice in a Texas CCN proceeding regarding El Paso Electric's petition to build two additional generating units at its Montana power station.
Specifically, Rockney Bacchus, an individual customer of El Paso Electric (EPE), a distributed generation installer and consultant, and a franchisee of One Hour Air Conditioning & Heating, has submitted testimony opposing the granting of the CCN based on its impact on customer choice, and recommending customer-driven alternatives to the capacity. One Hour Air Conditioning is a Direct Energy brand, but Direct Energy clarified in a February 13 letter to El Paso Electric that, "Direct Energy and its affiliated companies have no position in this docket," and that Bacchus, "does not represent any Direct Energy companies in this proceeding."
In testimony filed in the proceeding, Bacchus noted that retail choice started in Texas in January 2002. "It is now 2014 and EPE has still not taken the first step to just form a committee with the Western Interconnect. The obvious effect of approving this [generation CCN] petition on retail choice will be to further embolden EPE to ignore the PUCT and/or to subvert PUCT efforts to provide retail choice. In EPE's 9/13/13 Summary for Investors, it states the 'Key Strengths' ... 'Retail competition law repealed in New Mexico and delayed in Texas,'" Bacchus testified.
Noting generation ownership is a profit center for monopoly, vertically integrated utilities, Bacchus testified that, "EPE is clearly still trying to spend all the money the Public Utility Commission of Texas will let them, in order to maximize EPE profit and thereby maximize executive bonuses. This is a clear conflict of interest and a strong reason that EPE is petitioning to self build plants that the ratepayers do not need."
Bacchus is specifically seeking that the PUCT deny the CCN for the new generating units, and instead order EPE to implement several potential alternatives to the generation.
Bacchus said that the PUCT should immediately require EPE to open the interruptible demand rate (rate 38) to aggregators. In conjunction with certain rate design changes recommended by Bacchus, opening rate 38 to competitive aggregators of load, "will cause major existing demand and efficiency competitors to provide programs totally independent of EPE that will reduce peak demand by far more than the 178MW of capacity that EPE is petitioning to build. This competitive action does not need any funding from EPE and will lower rates," Bacchus testified
Bacchus alternatively said that EPE customers would be better off purchasing solar PPAs to meet the alleged capacity need, as Bacchus said that recent solar PPA costs for the area are lower than the costs of the new units at Montana.
The impact of EPE's petition for the CCN on customer choice is properly within the scope of the proceeding, as a preliminary order in the case specifically directs that the proceeding shall examine, "What effect, if any, would approval of the CCN have on the implementation of customer choice in the applicant's service territory, particularly on how the utility would mitigate market power and achieve full customer choice, including specific alternatives for constructing additional transmission facilities, auctioning rights to generation capacity, divesting generation capacity, or any other measure that is consistent with the public interest? [PURA § 39.402(c)]."
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February 18, 2014
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Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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