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AEP Texas: Granting NOIE Co-op's Cease And Desist Request Would Harm Customers, Affect Customers' Choice of Retail Electric Provider

AEP Texas Says It Has Grandfathered Rights To Serve Disputed Territory

June 13, 2017

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Reporting by Paul Ring • ring@energychoicematters.com

Granting a request from Rio Grande Electric Cooperative (RGEC) for an order from the Public Utility Commission of Texas requiring AEP Texas to cease serving over 100 residences in the Uvalde Estate Subdivision (outside of Uvalde, TX) would harm customers who are currently taking delivery services from AEP Texas, affecting customers' current choice of retail provider, AEP Texas said in a filing

Rio Grande Electric Cooperative has not adopted customer choice

As first reported by RetailEnergyX.com, RGEC alleges that the subject residences in the Uvalde Estate Subdivision are located in an area that is singly certificated to RGEC

In a response to RGEC's filing for a cease and desist order at the PUCT, AEP Texas said that it is currently gathering information regarding the disputed subdivision area that AEP Texas believes was first in existence at or before the time of the certification of AEP Texas and RGEC by the Commission in 1976.

"In fact, AEP Texas was providing service or extending service as of September 1, 1975 into the area in dispute in addition to the other areas of the Uvalde Estates Subdivision that make up the majority of the subdivision. These facts demonstrate that AEP Texas has grandfathered rights to serve the disputed area pursuant to PURA §37.052(a)(3), which provides that a certificate is not needed for an operation or service in progress on September 1, 1975," AEP Texas said

AEP Texas said that if RGEC's request relief is granted, preventing AEP Texas from serving the disputed customers, "that portion of the subdivision in dispute would then for the first time be bisected from the remaining majority portion of the subdivision that is served in whole by AEP Texas and is open to customer choice."

"The impact of the Commission ordering customers to be transferred to RGEC would come despite the fact of RGEC's own prolonged delay for decades in bringing the action it now brings. This is further exacerbated by RGEC failing to bring its action for over 15 years after the entry of customer choice, which the Cooperative reminds the Commission in its Complaint that it has not adopted and has not opened to its members. As a matter of equity, RGEC should not be rewarded for its own decades long inaction in failing to protect its alleged certificated rights to serve the area in dispute and should not be granted an order after so many years to allow it to so serve," AEP Texas said

"Granting RGEC the relief it seeks would be prejudicial and harmful to AEP Texas and to the customers taking delivery services from the Company affecting their current choice of retail provider," AEP Texas said.

"Such claims for relief should be barred from being requested by RGEC under the doctrine of laches," AEP Texas said.

Docket 47186

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