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Texas Staff Recommend 77% Reduction In Oncor's Sought Residential, Small C&I Distribution Cost Recovery Factor Applicable To Retail Providers

May 23, 2018

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

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Staff of the Public Utility Commission of Texas have filed testimony proposing a significant reduction in the revenue requirement for the proposed institution of a Distribution Cost Recovery Factor (DCRF) at Oncor, which results in a 77% reduction in the proposed level of the DCRF for residential and small commercial customers

As previously reported, Oncor has filed to institute its first DCRF, which would be a new rider charged to retail electric providers

Staff recommended a net DCRF revenue requirement of $4,243,296. This represents a $14,758,881 reduction to Oncor's requested revenue requirement, which was $19,002,177.

As a result, Staff proposed the following DCRF rates:

PUCT Staff Proposal - Oncor DCRF

Residential                $0.000051 per kWh
Secondary 
   ≤ 10 kW                 $0.000053 per kWh
   > 10 kW                 $0.010588 per kW
Primary 
   ≤ 10 kW                 $0.000026 per kWh
   > 10 kW - Distribution  $0.005442 per kW
   > 10 kW Substation      $0.001494 per kW
Transmission Service       $0.000136 per kW
Lighting Service           $0.000166 per kWh

For comparison, Oncor's proposed level for the DCRFs, effective September 1, 2018, are as follows:

Oncor Proposal - Oncor DCRF

Residential                $0.000229 per kWh
Secondary 
   ≤ 10 kW                 $0.000238 per kWh
   > 10 kW                 $0.047416 per kW
Primary 
   ≤ 10 kW                 $0.000115 per kWh
   > 10 kW - Distribution  $0.024372 per kW
   > 10 kW Substation      $0.006692 per kW
Transmission Service       $0.000608 per kW
Lighting Service           $0.000743 per kWh

The difference between Staff's proposal and Oncor's proposal is as follows (amounts reflect the positive decrease from Oncor's proposal to Staff's proposal, in other words, the amount by which Staff's proposal is lower than Oncor's proposal)

Residential                $0.000178 per kWh
Secondary 
   ≤ 10 kW                 $0.000185 per kWh
   > 10 kW                 $0.036827 per kW
Primary 
   ≤ 10 kW                 $0.000089 per kWh
   > 10 kW - Distribution  $0.018930 per kW
   > 10 kW Substation      $0.005198 per kW
Transmission Service       $0.000472 per kW
Lighting Service           $0.000577 per kWh

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