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Rayburn Co-op Formally Files At Texas PUC To Transfer Load Into ERCOT

Notes "Slight" Increase In Competitive Retail Customer Bills Of Other ERCOT LSEs From Proposal


May 31, 2018

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

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Rayburn Country Electric Cooperative, Inc. and Lone Star Transmission, LLC have filed a petition at the Texas PUC for: (1) approval to transfer and integrate Rayburn's load and related transmission assets currently in the Eastern Interconnection (Southwest Power Pool) to the Electric Reliability Council of Texas; (2) approval of the Option 2 transmission plan identified by ERCOT to integrate the Rayburn load and facilities; and (3) approval of the transfer of Rayburn's 10.8-mile Barton Chapel to Ben Wheeler 138 kV transmission line, associated 138 kV facilities, and associated Certificate of Convenience and Necessity rights to Lone Star

Rayburn serves four member-owned distribution electric cooperatives: Fannin County Electric Cooperative, Inc., Farmers Electric Cooperative, Inc., Grayson-Collin Electric Cooperative, Inc., and Trinity Valley Electric Cooperative, Inc.

Rayburn's Members purchase power from Rayburn and provide retail electric service to over 183,000 meters in 14 counties north and east of the Dallas Metroplex.

Approximately 88 percent of Rayburn's load is located within ERCOT. The remaining approximately 12 percent of Rayburn's load (approximately 96 MW) is in the Eastern Interconnection within the Southwest Power Pool region

Rayburn requested that the Commission issue the sought approvals in sufficient time for the ERCOT Integration to be accomplished by December 31, 2019.

Rayburn said that, in order to facilitate a seamless and efficient integration of Rayburn's Transfer Load into ERCOT, Rayburn requests that its Transfer Load and associated load buses be included in the existing Rayburn Non-Opt-In Entity (NOIE) load zone in ERCOT

Rayburn submitted testimony stating that its proposal would result in a cost to other ERCOT market participants of approximately $11.8 million to $9.8 million in 2020 and 2025, respectively.

A witness for the applicants calculated the changes to the ERCOT wholesale load costs from the proposed integration and used those values to estimate the retail impacts to customers.

"The load cost increases will translate into higher competitive energy charges paid by the retail customers in each service territory," the applicants' witness stated

"The most significant impact any retail customer class in any of the five service territories is 0.07 percent in 2020," the applicants' witness stated

"To provide a specific example, in 2020, I expect that a CenterPoint residential customer who consumes 1000 kWh each month will experience a $0.05 monthly bill impact," the applicants' witness stated

"I estimate that a 40-kW, non-IDR commercial customer with a 60-percent load factor, and taking service at secondary-voltage level, will see their $1,157.16 monthly bill increase by $0.45 after the Rayburn Load Transfer. For a 500-kW, industrial customer with a 40-percent load factor, and taking power at a transmission voltage level, will see their $13,097.40 monthly bill increase by $6.20 after the Rayburn Load Transfer. Like the residential customer, these customers will experience a 0.04 percent bill increase as a result of the ERCOT Integration," the applicants' witness stated

"The ERCOT Integration will also result in benefits for Rayburn's Members end-use customers, which are primarily residential customers. If the ERCOT Integration is approved, Rayburn's wholesale rates that it will charge its Members are expected to decrease by approximately $3.82 million or $0.86/MWh in 2020 and $3.86 million or $0.86/MWh in 2025. Assuming an average reduction of $0.86/MWh in 2020 and 2025 in the wholesale rate, the average rate paid by the Rayburn Members retail customers will decrease in 2020 by $0.95 per month or $11.40 per year (assuming 1000 kWh each month)," the applicants said

The proposed Option 2 will interconnect the Rayburn system to the ERCOT grid at three end points—Canton Tap, Ben Wheeler, and Jacksonville -- each of which are currently owned by Rayburn

Docket 48400

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