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Sharyland Files Rate Case To Implement System-Wide Distribution Rates, Would Provide $3 Million Rate Credit To Decrease Ex-Cap Rock Service Area Residential Rates By 1%; McAllen Residential Rates To See 68% Increase ($55 per month)

May 2, 2016

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

Sharyland Utilities has filed with the Public Utility Commission of Texas a rate case that would implement uniform, system-wide distribution rates across its Sharyland Utilities, LP (former Cap Rock) and Sharyland-McAllen service areas.

In the rate case, Sharyland is providing a $3 million rate credit to all of its residential customers, which will result in an overall revenue decrease as compared to adjusted test year base rate revenues for residential customers.

Specifically, this rate credit would be achieved by lowering the revenue requirement used to establish delivery rates, as opposed to a line-item credit that would potentially be required to be flowed through from retail electric providers to customers (as has been the case in other proceedings). The revenue requirement reduction will be borne solely by Sharyland.

The impact of the rate credit would result in an average residential customer in the Stanton, Brady, and Celeste (ex-Cap Rock) divisions seeing approximately a 1% decrease in their total T&D bill.

However, for the McAllen division, the average residential rate will increase by approximately 68%. Underlying the residential increase is the fact that the McAllen residential rates have been capped at the rates for AEP Texas Central Company and will now move to cost-based rates, Sharyland said

In the McAllen division, overall delivery rates for an average residential customer will increase approximately $55 a month.

Notable with respect to changes in the McAllen residential delivery rates is a $3.25 increase in the flat monthly customer charge (customer charge plus metering charge) from $6.74 to a system-wide rate of $10.00

Sharyland is also proposing a new optional rate class for churches and places of religious worship which is an energy-based rate, to address concerns with churches that were placed into the Secondary Greater Than 10 kW rate class which includes a demand charge

Docket 45414

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