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Oncor Withdraws Originally Sought Minimum Charge For Residential Customers With Distributed Energy Resources, Under Rate Case Stipulation

Stipulation Would Implement Uniform Rates If Sharyland Acquisition Approved

Non-volumetric Residential Delivery Charge To Increase 43¢

August 3, 2017

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Copyright 2010-17
Reporting by Paul Ring •

Under a stipulation with a wide range of stakeholders to resolve its current rate case, Oncor has withdrawn its original proposal for a new rate class for residential customers with distributed energy resources (Rate DER) with a capacity of three kW or greater that would have included a minimum charge.

"Oncor agrees to withdraw and not implement the proposed Rate DER and the direct testimony of T. Michael Quinn that were included in its RFP [rate filing package]. The elimination of that proposed rate is reflected in the Tariff for Retail Delivery Service provided in Attachment 2 to this Stipulation," the stipulation provides had exclusively first reported on March 20 that Oncor had, in its original filing, proposed the new residential DER rate class that would have provided that, for customers on such rate class, the customer's retail electric provider would be billed the greater of either the minimum charge established under the DER rate tariff (based on either demand or energy), or the otherwise applicable residential rate schedule

Under the now-withdrawn proposal, the minimum charge itself under the residential DER tariff would have been the lesser of $3.53 per kW of customer peak demand, or 3.7054¢/kWh of customer average energy.

Among other provisions of the settlement is a change to the Tariff for Retail Delivery Service to codify the customer size (700 kW demand) for which 4CP kW is the required billing determinant for application of the Transmission Cost Recovery Factor (TCRF). The current tariff requires that the customer must have an IDR meter to qualify for 4CP billing. The current ERCOT requirement for an IDR meter is 700 kW. This change is needed because Oncor no longer installs IDR meters

The stipulation also would adopt uniform, territory-wide delivery rates for the Oncor service area, including the proposed territories to be acquired from Sharyland, if such acquisition of Sharyland is approved.

Under the stipulation, the rate change and the related revised Oncor Tariff for Retail Delivery Service and Tariff for Transmission Service are proposed to become effective on November 27, 2017.

According to an attachment accompanying the stipulation, the proposed Oncor residential base rates under the stipulation would be as follows:

Customer Charge     $0.89 per Retail Customer
Metering Charge     $2.60 per Retail Customer
Distribution        $0.021141 per kWh

Additional riders would also be applicable.

This compares to the current Oncor residential base rates of:

Customer Charge     $0.78 per Retail Customer
Metering Charge     $2.28 per Retail Customer
Distribution        $0.018583 per kWh

The Stipulation provides for new rates to become effective on November 27, 2017.

Signatories to the stipulation include Oncor, the Staff of the Public Utility Commission of Texas; Office of Public Utility Counsel; Steering Committee of Cities Served by Oncor; Texas Industrial Energy Consumers; Alliance of Oncor Cities; Alliance for Retail Markets; Energy Freedom Coalition of America; Environmental Defense Fund, Inc. and North Texas Renewable Energy Group; Golden Spread Electric Cooperative, Inc.; Luminant Energy Company LLC, Luminant Generation Company LLC, and TXU Energy Retail Company LLC; MP2 Energy, LLC; NRG Retail Companies; Nucor Steel – Texas; Solar Energy Industries Association and Texas Solar Power Association; St. Lawrence Cotton Growers’ Association; Targa Pipeline Mid-Continent WestTex LLC/Targa Midstream Services LLC; Texas Cotton Ginners’ Association; Texas Energy Association for Marketers; United States Department of Defense/all other Federal Executive Agencies; and Wal-Mart Stores Texas LLC/Sam’s East Inc.

Several other parties do not oppose the stipulation.

According to testimony filed with the stipulation, only one party to the case, Brasovan Energy’s Electricity Users Coalition, opposes the stipulation

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