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Texas PUC Approves Oncor Acquisition Of Sharyland Distribution Assets & Customers, System-Wide Tariff For Combined Service Area

REPs Required To Pass-Through TDU Savings To Ex-Sharyland Customers


October 11, 2017

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

The Public Utility Commission of Texas today adopted final orders which approve an asset swap among Oncor and Sharyland Utilities that will see the Sharyland Utilities distribution assets (and retail customers) become part of Oncor, and under which a system-wide tariff will apply at Oncor, including to customers in the territories acquired from Sharyland

The PUC generally adopted global stipulations among parties concerning the matters, with certain adjustments that did not face objection from the utilities.

As previously reported, a key provision of the settlements is that REPs are required to pass-through any TDU rate savings, resulting from the application of lower Oncor rates to the former Sharyland customers, to the REPs' customers

Specifically, "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 [Sharyland] to Oncor shall receive a price reduction equivalent to the difference in the TDU charges from SU and Oncor."

Furthermore, "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."

Additionally, when Oncor reaches the approved regulatory capital structure, Oncor will cease accrual of the regulatory liability and will return the regulatory liability in the form of a bill credit over the period specified in Rider CSR – Capital Structure Refund and Rider WCSR – Wholesale Capital Structure Refund.

"These bill credits will be passed through to REPs, who will pass the credits on to those customers to whom the REP passed on the TDU rates approved in this proceeding," the adopted settlement provides

Under the transaction, Oncor will deploy smart meters to the customers in the former Sharyland service areas

Although the transaction is still subject to closing, PUC approval today should permit the new system-wide Oncor rates to take effect on November 27, which provides REPs with 45 days notice of the rates

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