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Parties Seek To Mandate That Texas REPs Pass Through To Customers Delivery Rate Savings From Transitioning Customers From Sharyland To Oncor

Ensuring Pass-Through For Customers On "Bundled" Pricing Plans Specifically Cited

September 13, 2017

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

Oncor, in a proposal supported by several retail electric providers, has proposed changes to the proposed order that would approve Oncor's acquisition of the Sharyland Utilities territories -- transitioning such customers to Oncor's delivery tariff -- to ensure that retail customers, particularly those on "bundled" products, receive the benefits of the lower Oncor delivery rates

Oncor's proposed revisions to the proposed order are supported by Public Utility Commission of Texas Staff, TXU Energy Retail Company LLC, the NRG Retail Companies, Alliance for Retail Markets, and Texas Energy Association for Marketers.

Oncor said that, "Oncor, after discussion with Commission Staff, is further requesting that additional language be included in the proposed Order that ensures that Oncor's rates are passed through to customers served by Sharyland Utilities, L.P. ('SU') who will become Oncor customers after the Sharyland Transaction closes."

"This additional language will ensure that when an SU customer becomes an Oncor customer as a result of the Sharyland Transaction, that customer will receive the benefit of Oncor's lower rates even if that customer has an existing bundled rate plan that includes the higher SU rates," Oncor said

The revised rates as reflected in Oncor's Tariff for Retail Delivery Service and Tariff for Transmission Service, as set forth in a previously reported stipulation for Oncor to acquire SU, will be charged to ESIDs for premises that were provided electric delivery service by SU prior to the Sharyland Transaction

Under a new finding of fact proposed by Oncor, "Customers who are served by their REP of Record under a contract term that extends beyond the date of transition of their ESID from SU to Oncor shall receive a price reduction equivalent to the difference in the TDU charges from SU and Oncor."

The proposed language further states, "A REP may transfer a customer on a contract that is based on SU TDU charges to an equivalent contract based on Oncor TDU charges for the duration of the contract term so long as the other pricing terms are not higher than the other pricing terms in the original contract. Such a transfer will not be deemed a change requiring notice under 16 Tex. Admin. Code 25.475(d)(3)."

Docket 46957

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