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Texas PUC Commissioners Concerned With Overly Broad Settlement On Smart Meter Texas Issues

While Concerns Don't Relate To Third-Party Data Access, Rejection Of Settlement Could Prompt Parties To Withdraw From Stipulation

April 13, 2018

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Reporting by Paul Ring • ring@energychoicematters.com

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During yesterday's open meeting, Texas PUC Commissioners expressed concern with an overly broad settlement regarding Smart Meter Texas (SMT).

In a case opened to address SMT business requirements and requirements for the continued operation of SMT under the Joint Development and Operating Agreement, parties settled all but a single issue: whether SMT should allow a Residential Customer or a Business Customer that is not a Large Business Customer (small customers) to grant a CSP access to the customer's SMT data for a term longer than 12 months

As previously reported, stakeholders reached, except for this one issue saved for litigation, consensus for new requirements for Smart Meter Texas, including a new process by which a customer affirms an agreement to share its SMT data with a Competitive Service Provider ("CSP", an entity other than the REP of Record).

Under this stipulated new process for providing CSPs with access to SMT, the customer will no longer be required to establish an SMT account before being able to share his or her SMT data with a CSP.

See prior story for more details on the settlement and litigated issue

However, the settlement addresses issues which PUC Chairman DeAnn Walker said went well beyond the scope of the proceeding.

In particular, the settlement addressed certain TDU cost recovery issues for SMT and issues related to limitation of liability determinations

In a memo in advance of the open meeting, Walker wrote, "In my opinion, the agreement of the parties in several instances goes well beyond this issue, and I do not believe such additional issues should be adopted by the Commission. Instead, the Commission should limit the order in this docket to the single issue of the appropriate business requirements for Smart Meter Texas, including the time period for a customer to renew access to its data by another entity. Therefore, issues such as cost recovery of the Smart Meter Texas, costs by the four utilities, and limitation of liability determinations are not properly before the Commission."

Walker also expressed concern with the elimination of HAN functionality under SMT for new users, since such HAN functionality is required by current rule

"In addition, the Commission should neither adopt the elimination of the Home Area Network (HAN) functionality nor grant a good cause exception to 16 TAC §25.130 and the various Commission orders. While the testimony is compelling that the HAN functionality is not utilized by many customers, it is not appropriate in this case to ignore the requirements of the Commission's substantive rules. Instead, the better manner in which to address this issue is through a rulemaking proceeding," Walker wrote in her memo.

Walker, prior to discussion at the open meeting, had suggested in her memo that the Commission should direct the Commission's Office of Policy and Docket Management to draft a single order that would address the business requirements for Smart Meter Texas contained in the agreement as well as the single issue addressed in the proposal for decision. Walker had written in her memo that the Commission should decline to issue an order on the remaining issues included in the agreement.

As to the issue addressed in the proposal for decision, Walker had written in her memo that the Commission should require a customer to re-affirm the data-sharing relationship with an entity on a twelve-month basis.

However, parties expressed concern that if discrete parts of the stipulation were rejected by the PUC, then certain parties may exercise their right to withdraw from the stipulation

The Commission did not take final action on a proposal for decision and the SMT stipulation

Parties were granted time to determine if there is a way forward that preserves the work of the parties but addresses the Commissioners' concerns. Parties will work to bring something to the Commission at the next open meeting

Docket No. 47472

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