Settlement Reached To Set Oncor DCRF Charge Applicable To Retail Providers, With 150% Increase For Residential Service

May 31, 2019

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Copyright 2010-19 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Oncor and various parties have filed a settlement agreement to set the levels of the Distribution Cost Recovery Factor (DCRF), a charge applicable to retail electric providers taking delivery service, effective September 1, 2019

Settling parties include Staff of the Public Utility Commission of Texas, Steering Committee of Cities Served by Oncor, Alliance of Oncor Cities, Alliance for Retail Markets and Texas Energy Association for Marketers

The DCRFs as proposed in the settlement are lower for most customer classes than those originally proposed by Oncor, but are higher than the current DCRFs. For residential customers, the proposed settlement DCRF is about 150% higher than the current DCRF (comparisons below)

The proposed DCRFs under the settlement are:

Settlement Proposed DCRF, 9/1/19
Residential                $0.000474 per kWh
Secondary 
   ≤ 10 kW                 $0.000503 per kWh
   > 10 kW                 $0.099593 per kW
Primary 
   ≤ 10 kW                 $0.000221 per kWh
   > 10 kW - Distribution  $0.046956 per kW
   > 10 kW Substation      $0.012099 per kW
Transmission Service       $0.001175 per kW
Lighting Service           $0.001833 per kWh

*Note all per kW amounts are per billing kW

For comparison, the initially proposed DCRFs and current DCRFs are as follows:

Originally Proposed DCRF, 9/1/19
Residential                $0.000523 per kWh
Secondary 
   ≤ 10 kW                 $0.000556 per kWh
   > 10 kW                 $0.109926 per kW
Primary 
   ≤ 10 kW                 $0.000244 per kWh
   > 10 kW - Distribution  $0.051828 per kW
   > 10 kW Substation      $0.013355 per kW
Transmission Service       $0 001297 per kW
Lighting Service           $0.001803 per kWh

*Note all per kW amounts are per billing kW



Current DCRFs
Residential                $0.000183 per kWh
Secondary 
   ≤ 10 kW                 $0.000190 per kWh
   > 10 kW                 $0.037928 per kW
Primary 
   ≤ 10 kW                 $0.000092 per kWh
   > 10 kW - Distribution  $0.019495 per kW
   > 10 kW Substation      $0.005353 per kW
Transmission Service       $0.000486 per kW
Lighting Service           $0.000595 per kWh

*Note all per kW amounts are per billing kW

The settlement provides that the exclusion of the six neighborhood reliability lithium-ion batteries from the prudence finding in Finding of Fact No. 36 of the final order in Docket No. 469571 is not affected by the approval of Oncor's DCRF rates in the current DCRF proceeding. Consistent with that finding of fact, Oncor may seek and other parties may challenge, a prudence finding related to these batteries in a future proceeding.

Docket 49427

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