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ALJs Would Approve Sharyland Smart Meter Deployment, Deny Calls To Link Case to Oncor Change-in-Control Proceeding

January 21, 2016

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Copyright 2010-16 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

A proposal for decision from two Texas ALJs would approve the advance metering deployment plan of Sharyland Utilities, denying the requests from certain parties to withhold approval pending the outcome of the Oncor change-in-control proceeding.

After an abatement of the Sharyland AMI case was denied, Staff of the Public Utility Commission of Texas urged that the as-filed plan be rejected, noting that if Oncor, as proposed in its change-in-control proceeding, becomes affiliated with Sharyland, Oncor's AMI assets and expertise could be leveraged to reduce costs of Sharyland's AMI deployment. Staff argued that it would be unreasonable for Sharyland to rush forward with AMI deployment without considering this opportunity.

Staff and retail providers also sought more testing under Sharyland's deployment plan.

The ALJs rejected such arguments, in recommending approval of Sharyland's AMI deployment plan

"The bases for the opposing parties' arguments can be generally summarized as follows: (1) the parties are concerned regarding the high rates being paid by Sharyland's customers and (2) the parties desire to avoid issues that have come up during AMS deployment by other TDUs. These are legitimate concerns; however, they do not negate the fact that Sharyland's Application meets the applicable legal standards. Moreover, requiring a pilot program, as urged by several parties, is neither required by the AMS Rule nor any other applicable authority, nor would conducting a pilot program achieve the goals proffered by the parties. Sharyland's Deployment Plan includes extensive testing that other TDUs did not implement. This testing should ensure that Sharyland's AMS is functional before it is fully deployed. Requiring a pilot program in this case would allow form to prevail over substance. Further, the legislature has set forth a goal of deploying AMS as quickly as possible, and, the sooner Sharyland implements AMS, the sooner its customers will achieve cost savings. A pilot program would require additional expenditures, which would be passed along to Sharyland's customers, as well as delay," the ALJs said

"The additional testing and reporting urged by the opposing parties is unreasonable and unfair. The parties seek to hold Sharyland to a standard that is higher than that required by the applicable legal authorities and higher than that required of other TDUs. To require Sharyland to have a flawless, nearly completely transparent deployment, as the opposing parties seem to suggest is necessary, lacks a legal basis and is fundamentally unfair. Moreover, Sharyland's Deployment Plan is designed to minimize any issues that may arise based on what other TDUs have experienced," the ALJs said

The amount of the AMS surcharge, assessed to retail electric providers, would be, for both Sharyland service areas:

Residential                             $3.17
Secondary Less Than or Equal to 10 kW   $3.25
Secondary Greater Than 10 kW            $4.60
Primary                                 $3.52

Sharyland's AMI plan originally contemplated a two-year AMI deployment schedule, with approximately 15,000 smart meters originally proposed to be deployed in 2015, and approximately 40,000 smart meters in 2016, resulting in territory-wide deployment at its McAllen and former Cap Rock service areas. A revised plan given the pendency of the case contemplated that all deployment would now occur in 2016; however, the ALJs note that Sharyland's deployment schedule will of necessity be delayed due to the date of issuance of this PFD and the Commission's open meeting schedule

Docket 44361

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