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TNMP Drops Several Proposed New Riders, Charges Applicable To Retail Providers Under Rate Case Settlement

Eliminates AMS Surcharge, Significantly Reduces Most Discretionary Fees

Would Increase Flat Base Rate Monthly Fees For Residential Service By 50%, Also Increase Volumetric Charge

November 5, 2018

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Copyright 2010-17
Reporting by Paul Ring •

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Texas-New Mexico Power, Staff of the Public Utility Commission of Texas, the Alliance for Retail Markets, the Texas Energy Association for Marketers, Texas Industrial Energy Consumers, and the Office of Public Utility Counsel have filed a stipulation that would resolve TNMP's base rate case proceeding.

The stipulation drops several new riders and new (or increased) fees applicable to retail electric providers that had originally been proposed by TNMP in its initial application (see's exclusive analysis of the proposals here).

The stipulation would adopt new Rider HCRF - Hurricane Cost Recovery Factor, though in a reduced amount versus TNMP's initial proposal. Final rates for Rider HCRF are not available as the final rates will reflect carrying charges, less excess amounts TNMP has been recovering in current rates due to reductions in federal tax obligation (and the final amounts for such impacts will not be set until the date the new rates take effect). TNMP will file a compliance filing with final Rider HCRF upon approval of the stipulation.

However, the stipulation did contain an attachment showing indicative amounts for Rider HCRF as follows:

Rider HCRF -- Indicative Rates, Not Final
Residential          $0.00014 per kWh
Secondary ≤ 5 kW     $0.00014 per kWh
Secondary > 5 kW
  Non IDR            $0.02828 per Billed kW
  IDR                $0.04644 per Billed kW
Primary Service
  Non IDR            $0.02429 per Billed kW
  IDR                $0.02596 per Billed kW
Transmission         $0.00009 per 4CP kVA
Lighting             $0.00037 per kWh

To compare these reduced HCRF rates to the originally proposed Rider HCRF rates, see our prior story here.

The stipulation does not include TNMP's proposed new Rider AVM - Rate Case Additional Vegetation Management rider. The rider would have included a charge of $0.00089 per kWh for residential customers and $0.00071 per kWh for Secondary ≤ 5 kW customers

Tariffs attached to the stipulation also do not include Rider RCE - Rate Case Expense; however, issues related to rate case expenses incurred in connection with the instant proceeding and Commission Docket Nos. 35038 and 41901 were severed into Commission Docket No. 48591.

As proposed by TNMP, the stipulation would eliminate the current Rider AMS – Advanced Metering Surcharge under the settlement, with recovery of remaining AMS costs placed into base rates. Rider AMS had only been a charge applicable to residential customers, equal to $3.40 per month

The stipulation also does not include the TNMP's proposed new Inadvertent Gain fee of $25. The new Inadvertent Gain fee would have been 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.

Additionally, the stipulation does not adopt TNMP's proposal to include a $0.40 charge for a Meter Reading for Purpose of a Mass Transition (standard meter). Under the stipulation, a Meter Reading for Purpose of a Mass Transition (standard meter) will continue to be $0.

The stipulation would adopt the following reduced discretionary service fees (among others):

       Current Tariff      Stipulation
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

Regarding new base rates, the stipulation's modified Transmission and Distribution Charges are as follows for residential customers (current charges also listed). The stipulation rates are marginally lower than TNMP's original proposal. Note the 50% increase in flat monthly charges and increase in volumetric charges.

Transmission and Distribution Charges:
         Current Tariff      Stipulation
Customer Charge   $4.00        $1.13   per month
Metering Charge   $1.25        $6.72   per month
Transmission      $0.00        $0.00   per kWh
Distribution      $0.017347    $0.025670 per kWh

For Secondary ≤ 5 kW customers, the stipulation would adopt the following TDU rates:

Secondary ≤ 5 kW
Transmission and Distribution Charges:
         Current Tariff      Stipulation
Customer Charge   $2.50        $0.74   per month
Metering Charge   $2.20        $7.62   per month
Transmission      $0.00        $0.00   per kWh
Distribution      $0.033323    $0.042580 per kWh

Docket 48401

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