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Texas Staff: Customers In Service Area Dispute Between AEP Texas, Co-op Are Within AEP Texas' Service Area

March 16, 2018

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

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In a statement of position concerning preliminary issues, Staff of the Public Utility Commission of Texas said that customers in the Uvalde Estate Subdivision (outside of Uvalde, TX) are within AEP Texas's certificated service area.

As previously reported, Rio Grande Electric Cooperative (RGEC) had sought 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), arguing that the subdivision is singly certificated to RGEC

Rio Grande Electric Cooperative has not adopted customer choice. To the extent the customers currently served by AEP Texas's distribution system were moved to RGEC, they would lose their chosen retail electric provider

See prior story for further background on the proceeding

Staff said in its statement of position that, "because facts and evidence may be further developed during cross-examination at the hearing on the merits, Staff's position may be affected at the hearing. Staff therefore reserves the right to further develop its position on these issues through cross-examination during the hearing and briefing afterwards."

However, at this time, Staff said that, "The boundary between AEP and Rio Grande's certificated service areas places the entire Uvalde Estates subdivision in AEP's certificated service area."

Staff cited several proceedings addressing the certificated service areas, and stated that, "Staff believes that AEP has presented sufficient evidence of the parties' intent in Docket No. 51 to conclude that the boundary depicted in Staff Exhibit 9 places the entirety of the Uvalde Estates subdivision in AEP's certificated territory."

"A CPL interoffice memorandum dated November 26, 1974 indicates that CPL and the developer of the Uvalde Estates subdivision had agreed that CPL would serve the subdivision," Staff said

"Staff believes that the [service area] boundary line does not bisect the subdivision. Consequently, the entire subdivision lies within AEP's certificated service area, and none of the customers AEP serves in the subdivision are located inside the boundaries of Rio Grande's certificated service area," Staff said

"Staff believes the entirety of the Uvalde Estates subdivision lies within AEP's certificated service area. All extensions and additions to the distribution lines that were made subsequent to September 1, 1975 are within AEP's certificated service area and, as such, it is of no consequence whether the customers are within 200 feet of any distribution line in place on or before September 1, 1975," Staff said

"[B]ecause the entirety of the subdivision lies within AEP's certificated service area, AEP may serve customers located more than 200 feet from any point along such line within its certificated area," Staff said

"Staff does not believe AEP is serving inside Rio Grande's certificated service area," Staff said

"Staff believes that none of the customers AEP currently serves in the Uvalde Estates subdivision lie within Rio Grande's service area," Staff said

"Staff believes that none AEP's facilities inside the Uvalde Estates subdivision are within Rio Grande's certificated service area," Staff said

Docket 47186

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