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Texas Staff Report on REP Low-Income Reimbursement Program, Note Eligibility May Need To Be Changed

December 1, 2015

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Reporting by Karen Abbott • kabbott@energychoicematters.com

Staff of the Public Utility Commission of Texas filed a report on the program under which Texas retail electric providers are reimbursed for providing no-cost programmable communicating thermostats and in-home displays to eligible low-income customers.

As previously reported, as of September 30, millions were still available for reimbursement to REPs under the program, with funds available at all of the TDUs except TNMP, where funds have been exhausted

Staff reported aggregate totals of the program, noting that based on the TDUs' October 15, 2015 reports, across the five TDU service areas (AEP Texas Central Company, AEP Texas North Company, CenterPoint Energy Houston Electric, Oncor, and Texas-New Mexico Power), 9,454 programmable communicating thermostats (PCTs) were installed and 7,327 in-home monitors (IHM) were deployed. The total program funds available at the beginning of the program totaled $18,625,000. REP reimbursements and TDU administrative expenses equaled $6,456,164 (35% of the total funds available) for the January through September 2015 invoicing periods, leaving a balance of $12,168,836. TNMP is the only utility that has expended its entire budget ($125,000).

Sixteen REPs have been participating in the program

Staff noted that the Plan relies on the LITE-UP system benefit fund program to identify low-income customers eligible for the devices. Staff noted that the Legislature discontinued the system benefit fund effective September 1, 2017 and directed the Commission to set the SBF fee to zero beginning September 1, 2013 and ending September 1, 2017. Commission Staff projects that the remaining balance in the SBF will be depleted in September 2016.

As previously reported, the Commission has a pending rulemaking to amend its rules to reflect the discontinuation of the SBF. Because the smart energy device REP reimbursement plan currently relies on the LITE-UP program to identify low-income customers eligible for devices, the outcome of the SBF rulemaking may require that the plan be revisited, Staff noted

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