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Texas PUC Seeks Briefs On Effective Date For Sharyland TCRF Changes, As Commissioners Suggest Nimble REPs Able To Adjust Charges Outside of Normal Process

September 25, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

The Public Utility Commission of Texas sought briefs concerning a change in the allocations used to determine the Transmission Cost Recovery Factors (TCRFs) applicable at Sharyland Utilities, LP, and, if adopted, when any changes should take effect, as Commissioners suggested that the unique circumstances at Sharyland Utilities warrant adjustment to the TCRF rates applicable to retail providers outside of the twice-yearly changes which normally occur on March 1 and September 1.

As previously reported, changing the TCRF allocation factors has been proposed as a solution to alleviate residential rate burden outside of a full rate case.

However, the TCRF rates, which are charged to retail providers who then determine how to recover such costs in retail rates, were just updated on September 1, and, under the normal rate-setting process, would not be updated again until March 1, delaying any relief. REPs have expressed concern with any earlier implementation, or especially making any allocation factor changes retroactive to September 1, due to administrative burdens in implementing such changes

The Commission sought briefing on the following questions:

• Should the Commission approve Sharyland's application in Docket No. 44620 to revise its TCRF class allocation factors?

• If the Commission adopts the proposed allocation factors, when should the new factors go into effect?

• If the new factors go into effect before March 1, 2016, what is the best way to accomplish that?

While the Commission will decide the issue at its October 8 open meeting, Commissioners cited extenuating circumstances as auguring for a departure from the normal TCRF adjustment process, despite their general sympathy to the REPs' concerns

Commissioner Brandy Marty Marquez noted that as customer usage at Sharyland Utilities is high during the winter, for relief to be meaningful it would need to be in advance of March 1. Marquez noted the competition among REPs for customers at Sharyland, and noted that "enterprising" REPs may be able to implement any TCRF change in advance of March 1, perhaps with 30 days notice for the change, rather than the standard 45 days.

Chairman Donna Nelson likewise noted that REPs, the entrepreneurs of the market, are always saying that they're the, "smartest guys in the room," and a non-standard TCRF modification presents an opportunity for REPs to show it.

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