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TNMP Proposes New Riders Applicable To Texas Retail Providers For Hurricane Costs, Vegetation Management, And Rate Case Expenses, In Newly Filed Rate Case

Would Eliminate AMS Surcharge, And Significantly Reduce Most Discretionary Fees (Add New Inadvertent Gain Fee)

Seeks To Move Residential Class To Cost Of Service, Reduce Inter-class Subsidies

Would Increase Flat Base Rate Monthly Fees For Residential Service By 60%, Also Increase Volumetric Charge

Rate Increase Would Be About $12 Per Month To REPs For Residential Customers Using 1,000 kWh Per Month

Would Nearly Double Costs Recovered Via Flat Monthly Fee For Secondary ≤ 5 kW Customers

May 31, 2018

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

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Texas-New Mexico Power has filed with the Public Utility Commission of Texas a new base rate case in which TNMP is proposing to add three new riders applicable to retail electric providers, with such riders proposed to recover Hurricane Harvey restoration costs, additional vegetation management expenses, and rate case expenses associated with the proceeding

TNMP proposes new Rider HCRF - Hurricane Cost Recovery Factor in the following amounts:

Rider HCRF
Residential          $0.000334 per kWh
Secondary ≤ 5 kW     $0.00036  per kWh
Secondary > 5 kW
  Non IDR            $0.07138  per Billed kW
  IDR                $0.11722  per Billed kW
Primary Service
  Non IDR            $0.06130  per Billed kW
  IDR                $0.06553  per Billed kW
Transmission         $0.00023  per 4CP kVA
Lighting             $0.00094  per kWh

In a proposed tariff, TNMP states that Rider HCRF will be in effect for approximately five years until such restoration costs are collected

TNMP proposes new Rider AVM - Rate Case Additional Vegetation Management in the following amounts

Rider AVM
Residential          $0.00089  per kWh
Secondary ≤ 5 kW     $0.00071  per kWh
Secondary > 5 kW
  Non IDR            $0.18871  per NCP kW
  IDR                $0.32278  per 4CP kW
Primary Service
  Non IDR            $0.19057  per NCP kW
  IDR                $0.20425  per 4CP kW
Transmission         $0.00     per 4CP kVA
Lighting             $0.00097  per kWh

TNMP proposes new Rider RCE - Rate Case Expense Docket No. 48401 in the following amounts

Rider RCE (RCE-4)
Residential          $0.000196 per kWh
Secondary ≤ 5 kW     $0.000349  per kWh
Secondary > 5 kW
  Non IDR            $0.000162 per Actual kW
  IDR                $0.000122 per 4CP kW
Primary Service
  Non IDR            $0.000122 per Actual kW
  IDR                $0.000106 per 4CP kW
Transmission         $0.018623 per kWh
Lighting             $0.000463 per kWh

TNMP has proposed eliminating the current Rider AMS – Advanced Metering Surcharge, with recovery of remaining AMS costs placed into base rates. For reference, the amounts of the current Rider AMS, which would be eliminated, are as follows:

Rider AMS            Current
Residential          $3.40 per month
Secondary ≤ 5 kW     $0.00 per month
Secondary > 5 kW     $0.00 per month
Primary Service      $0.00 per month
Lighting             $0.00 per month

Regarding new base rates, TNMP for residential customers proposed modified Transmission and Distribution Charges as follows (current charges also listed). Note the 60% increase in flat monthly charges and increase in volumetric charges.

Residential
Transmission and Distribution Charges:
                 Current    Proposed
Customer Charge   $4.00        $1.17   per month
Metering Charge   $1.25        $7.27   per month
Transmission      $0.00        $0.00   per kWh
Distribution      $0.017347    $0.026760 per kWh

Regarding new base rates, TNMP for Secondary ≤ 5 kW customers proposed modified Transmission and Distribution Charges as follows (current charges also listed).

Secondary ≤ 5 kW
Transmission and Distribution Charges:
                 Current    Proposed
Customer Charge   $2.50        $1.22   per month
Metering Charge   $2.20        $7.81   per month
Transmission      $0.00        $0.00   per kWh
Distribution      $0.033323    $0.043480 per kWh

TNMP proposes a reduction to various discretionary service charges, and implementation for a new Inadvertent Gain fee.

The new Inadvertent Gain fee would be applicable to Retail Electric Providers that have selected an incorrect premise from the ERCOT portal for a switch or move-in and for which TNMP is required to correct the inadvertent gain.

The new Inadvertent Gain fee would be $25

The following discretionary service charges are among those that would be modified, for Standard Meters:

               Current      Proposed
Move-In        $54          $1.50
  (Existing Standard Meter)

Move-In        $60          $36
  (New Standard Meter)

Disconnection for Non-Payment (DNP)
  at Meter     $9.67        $1.50

Reconnection After DNP
  at Meter     $9.67        $1.50

Meter Reading for Purpose of Self-Selected Switch
               $27          $0.40

Meter Reading for Purpose of Mass Transition
               $0           $0.40

TNMP proposed transitioning residential rates towards cost of service, though not fully at this time. TNMP in testimony said that the settlement agreements in the last three rate cases have included an overall revenue requirement and a class allocation that has not fully reflected cost causation, with residential rates being subsidized by other classes.

TNMP's proposed rates in the instant case would begin to move each customer class to cost-based rates over time, but not in one proceeding.

Overall, TNMP's requested rate increase for residential service would result in an increase of $12.21 per month to the REP for a residential customer using 1,000 kWh per month.

"[A] substantial portion of the increase to residential customers is the result of re-assigning costs across customer classes based on cost causation to reduce current subsidies and bring all classes toward equalized rates of return. Bringing eight years of distribution investment into rate base in this case, and bringing returns by class toward parity, requires a greater adjustment to residential rates," TNMP said in testimony

The basic structure and development of the rate tariffs for all classes remains unchanged from the design employed in Docket No. 38480. For all classes, except lighting, the rate design includes a per ESI ID charge; a metering charge, which is applied to each meter associated with the ESI ID; a distribution charge; and, all wholesale transmission costs collected through Rider TCRF

Consistent with prior PUCT orders, TNMP is eliminating Rider SCUD – State Colleges And Universities Discount

TNMP is adding clarifying language to the tariff rate schedules for Secondary Service Greater Than 5 kW and Primary Service. Specifically, TNMP is adding the following Tariff language regarding billing determinants for Rider TCRF, Secondary Service Greater than 5 kW, and Primary Service: Determination of Billing under NCP kW or 4CP kW -- Any Premise that has established an NCP kW of at least 700 kW in any previous billing month, or Retail Customers billed on 4CP kW prior to the effective date of this tariff, shall be billed on their 4CP kW pursuant to the Determination of 4CP kW provision in the applicable rate schedule.

Docket 48401

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