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Texas Retail Providers Oppose Delay Sought By OPUC in Sharyland TCRF Update

August 7, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

Retail electric providers opposed a delay sought by the Office of Public Utility Counsel concerning an update to Sharyland Utilities L.P.'s Transmission Cost Recovery Factor.

OPUC had sought a hearing concerning the TCRF update proceeding (44785) in light of a separate proceeding addressing the class allocation factors used for the TCRF (44620). That request was denied by an ALJ, and on July 23 the updated Sharyland Utilities L.P. TCRF factors were administratively approved effective September 1

OPUC then appealed the ALJ's decision denying the hearing, and moved to abate implementation of the new TCRFs

Retail providers opposed OPUC's request, noting the deadline of September 1 embedded in rule for TCRF updates.

Retail providers noted that, "REPs have already expended time, money, and resources in anticipation of the September 1, 2015 effective date for the updated TCRF rates administratively approved in the order. Granting OPUC's appeal would effectively change the rates from those approved by the final order and result in a redoubling of those efforts and expenditures with very little notice and time to ensure proper implementation, even though REPs have properly relied upon the order administratively approving those rates issued by the Commission consistent with 16 TAC § 25.193 ... While the REP Group respects OPUC's desire to implement modified transmission cost allocators on behalf of residential and small commercial customers sooner rather than later, its attempt to retrofit a revised cost allocation into the TCRF rates established in this proceeding simply turns the process codified in 16 TAC § 25.193 on its head. At this point, the more orderly and less disruptive implementation of any revised cost allocation factors should occur in the context of the updated TCRF rates approved in Sharyland's next TCRF update proceeding rather than this docket."

REPs said that denying OPUC's request, "will promote price certainty and predictability for retail electric providers (REPs) and other customers of Sharyland's distribution system, consistent with the intent of 16 TAC § 25.193."

"The REP Group realizes that OPUC's objective is to employ updated transmission cost allocation factors in updated TCRF rates approved in this docket. This objective, however, makes compliance with the administrative timeline specified in 16 TAC § 25.193(b) impossible, given that the hearing in Docket No. 44620 (or any hearing conducted in this docket at this point) will significantly lag behind the September 1 effective date prescribed by rule for the updated TCRF dates approved in this proceeding," the REPs said

PUCT Staff also opposed OPUC's request

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