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Residential DCRF Charge Applicable to REPs To Fall 20% At CenterPoint-TDU, Other DCRF Charges To Increase Under Settlement

June 28, 2017

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Copyright 2010-17 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

A unanimous settlement filed with the Texas PUC would establish new Distribution Cost Recovery Factors (DCRF) charged to retail electric providers at CenterPoint Energy Houston Electric for the period beginning September 1, 2017

The settlement DCRFs have been reduced versus CenterPoint Energy Houston Electric's initial filing as a result of a "black box" settlement reduction, and to reflect certain refunds related to amounts from a forthcoming Advanced Metering System (AMS) reconciliation proceeding (AMS refund amount).

Residential customers will see nearly a 20% decrease in the DCRF effective September 1.

The proposed DCRFs under the settlement are:

Effective:         9/1/17*    9/1/18
Residential        $0.000652  $0.001606  per kWh
Secondary ≤10 kVA  $0.001836  $0.002086  per kWh
Secondary >10 kVA 
  Non-IDR          $0.247880  $0.273443  per kVA
  IDR              $0.264460  $0.273443  per kVA
Primary            
  Non-IDR          $0.112709  $0.117238  per kVA
  IDR              $0.113386  $0.117238  per kVA
Transmission       $0.004977  $0.005146  per 4CP kVA
Lighting           $0.023973  $0.024788  per kWh

* The settlement DCRF rates will be adjusted for the period of March 1, 2018 through August 31, 2018 to reflect any discrepancy in the AMS refund amount above and the amount in the final order of the AMS reconciliation proceeding.

The settlement's September 1, 2017 DCRFs would be implemented on such date on an interim basis pending a final order on the DCRF settlement

For comparison, CenterPoint Energy Houston Electric's current DCRFs are:

Residential          $0.000795 per kWh
Secondary ≤10 kVA    $0.001061 per kWh
Secondary >10 kVA    $0.136574 per kVA
Primary              $0.060299 per kVA
Transmission         $0.002657 per 4CP kVA
Lighting             $0.011658 per kWh

Additionally, for comparison, CenterPoint Energy Houston Electric's initially proposed DCRFs had been:

Effective:         9/1/17     9/1/18
Residential        $0.001603  $0.001656  per kWh
Secondary ≤10 kVA  $0.002082  $0.002151  per kWh
Secondary >10 kVA  $0.272994  $0.281978  per kVA
Primary            $0.117045  $0.120897  per kVA
Transmission       $0.005138  $0.005307  per 4CP kVA
Lighting           $0.024747  $0.025561  per kWh

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