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CenterPoint TDU Files To Increase Residential DCRF Rate Charged To REPs By 138% Versus Currently Applicable Rate
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CenterPoint Energy Houston Electric, LLC (CEHE) filed a petition with the Public Utility Commission of Texas to update the Distribution Cost Recovery Factors (Rider DCRF), effective September 1, 2018.
For residential customers, CEHE's proposed DCRF is about 0.8 mills per kWh higher than the currently applicable DCRF which took effect on March 1. This represents a 138% increase versus the current charge
However, in CEHE's last DCRF proceeding, the PUCT approved a stipulation which approved DCRF rates which were to take effect on September 1, 2018, barring any updated application from CEHE to modify such rates prior to those September 2018 rates taking effect
The newly proposed residential DCRF is about 7% lower than the DCRF that is otherwise scheduled and approved to take effect on September 1, 2018.
The newly proposed DCRF for the Secondary ≤10 kVA class represents a 2.5% increase versus the currently applicable DCRF
CEHE's newly proposed DCRFs to be effective September 1, 2018 are as follows:
For comparison, below are the current DCRFs as well as the DCRFs previously approved and tariffed to take effect September 1, 2018:
In a statement to ECM, CenterPoint Energy Houston Electric noted the following concerning its DCRF application
• "The Current DCRF residential rate of $0.62 includes a one-time, one-year credit of about $29M to return to customers savings from our now-concluded smart meter project. That credit is scheduled to end this September, at which time the DCRF rate would increase to the approved amount of $1.61.
- CEHE proposed last year to use the $29M credit to offset DCRF rates to ensure that end-use customers received the benefits of the credit, because REPs are not required to pass such credits on to all customers.
- There was savings to be returned to customers related to the smart meter project because we completed that project at a lower cost than was estimated and recovered in rates.
• In today’s DCRF application, instead of charging the $1.61 DCRF rate that would otherwise go into effect in September, CEHE proposed to begin charging $1.49 in September.
- That is a decrease to the otherwise-approved rate of $0.12 or a 7.5% reduction to rates otherwise authorized to go into effect 9/1/18.
- A large driver of the decrease is because CEHE is returning $39M of benefit back to customers associated with the recent change in corporate tax rate from 35% to 21%.
• CEHE added distribution infrastructure to accommodate more than 40,000 new metered customers in 2017, spent more than $30M on new substations to reliably serve all 2.5 million metered customers, spent more than $25M on public improvement projects, and incurred more than $20M in restoration costs associated with Hurricane Harvey.
- The DCRF mechanism allows the PUC and other stakeholders to review the reasonableness of those costs and for CEHE to start recovering those costs later this year.
- We look forward to working with the parties to get them comfortable in concluding that the new DCRF charge is reasonable in light of CEHE’s 2017 capital spend."
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Proposed Rate 7% Lower Than Previously Approved September 2018 Rate
April 5, 2018
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Reporting by Paul Ring • ring@energychoicematters.com
CenterPoint Energy Houston Electric
Proposed DCRFs, To Be Effective 9/1/18
Residential $0.001486 per kWh
Secondary ≤10 kVA $0.001878 per kWh
Secondary >10 kVA $0.249200 per kVA
Primary $0.112678 per kVA
Transmission $0.004325 per 4CP kVA
Lighting $0.024491 per kWh
CenterPoint Energy Houston Electric
Current DCRFs
Residential $0.000624 per kWh
Secondary ≤10 kVA $0.001831 per kWh
Secondary >10 kVA
Non-IDR $0.247349 per kVA
IDR $0.264460 per kVA
Primary
Non-IDR $0.112687 per kVA
IDR $0.113386 per kVA
Transmission $0.004977 per 4CP kVA
Lighting $0.023973 per kWh
CenterPoint Energy Houston Electric
Tariffed DCRFs For Period Starting 9/1/18
Effective: 9/1/18
Residential $0.001606 per kWh
Secondary ≤10 kVA $0.002086 per kWh
Secondary >10 kVA
Non-IDR $0.273443 per kVA
IDR $0.273443 per kVA
Primary
Non-IDR $0.117238 per kVA
IDR $0.117238 per kVA
Transmission $0.005146 per 4CP kVA
Lighting $0.024788 per kWh
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