AEP Texas To Provide Bill Credits To Customers In Acquiring Oncor's McAllen Service Area, Under Proposed Stipulation

Witness: Transitioned End-Use Customers "Will Receive" Bill Credit

Stipulation Outlines Customer Transition Process For Retail Electric Providers, Start Date, REP Obligations

August 8, 2019

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Reporting by Paul Ring • ring@energychoicematters.com

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Parties including AEP Texas, Oncor, Texas PUC Staff, the Alliance for Retail Markets, the Texas Energy Association for Marketers, and various ratepayer advocates have filed a proposed stipulation which would approve the sale of Oncor's McAllen and Mission distribution service area (and associated assets) to AEP Texas

Oncor serves approximately 3,000 electric delivery customers in the McAllen/Mission area. The transaction had been first reported by EnergyChoiceMatters.com (see details here)

Under the proposed stipulation, the start of the transition of the Oncor McAllen/Mission customers to AEP Texas would occur under one of the following options: (i) on October 1, 2019, using Oncor's meter reading cycles 5, 12, and 20, if the Proposed Transaction closes on or before September 24, 2019, or (ii) on October 31, 2019, using Oncor's meter reading cycles 5, 12, and 20, if the Proposed Transaction closes between September 25, 2019 and October 24, 2019.

For either transition option identified above, AEP Texas shall coordinate with ERCOT to provide a list to each Retail Electric Provider ("REP") of Record of the electric service identifiers ("ESI ID") to be transitioned one week prior to the transition date for the ESI IDs.

The stipulation provides that, "AEP Texas will provide a one-time bill credit in the amount of $90,000 that is equally allocated to each transitioned end-use customer within three months of completing the transition process."

A witness for AEP Texas, testifying in support of the stipulation, said that, "the transitioned end-use customers will receive a direct, economic, and tangible benefit of $90,000 in the form of a one-time bill credit provided by AEP Texas."

"In the event that a one-time bill credit would result in a negative wires charge amount to be billed to a transitioned end-use customer, AEP Texas will credit such customer the amount of the bill credit over a period of up to three months," the stipulation provides

A witness for AEP Texas further noted that, "In addition to this one-time bill credit, the Oncor ESI IDs that are transitioned to AEP Texas will be assessed a lower overall level of transmission and distribution ('T&D') rates and charges at the time of their transition when compared to Oncor's post-September 1, 2019 T&D rates and charges."

The stipulation provides that AEP Texas will establish a corresponding new AEP Texas Central ESI ID for each existing ESI ID currently assigned to Oncor that is affected by the proposed transaction

Each new AEP Texas ESI ID will be assigned to the corresponding AEP Texas rate class under the applicable tariff provision. AEP Texas shall provide reasonable notice to the customer' s REP of Record as to the assigned rate class for each ESI ID.

The stipulation seeks a finding from the PUC that the transition of a customer in the McAllen/Mission service territory and subsequent establishment of a new ESI ID for each affected customer will not, by itself, be deemed as an enrollment in a new retail electric product and will not require authorization disclosures or verification requirements for the REP of Record.

The stipulation seeks from the PUC, to the extent needed, a good-cause exception to the requirements in 16 Tex. Admin. Code (TAC) § 25.475 to allow a REP to use an Electricity Facts Label ("EFL") for a retail product offered in the McAllen/Mission service area formerly served by Oncor that is identical to the EFL used for the same retail product offered to AEP Texas Central customers, except that the EFL's Electricity Price Section is modified to identify the AEP Texas rate riders that do not apply to the McAllen/Mission service area formerly served by Oncor. ESI IDs that are transitioned to AEP Texas will be charged AEP Texas Central's standard retail electric delivery rates with the following exceptions: Transition Charge-2, Transition Charge-3, Nuclear Decommissioning Charge, System Restoration Charge, and ADFIT credit associated with the System Restoration Charge.

The stipulation provides the REP of Record serving a transitioned customer shall provide the customer with a Your Rights as a Customer ("YRAC") document that includes updated outage contact information for AEP Texas

The parties agree that a REP of Record serving a transitioned customer, "is encouraged, but not required," to notify the customer by email or letter that AEP Texas will be the transmission and distribution utility ("TDU") providing retail electric delivery service to the customer. A REP of Record providing this notice may refer the customer to a TDU website concerning the customer transition, required to be developed by the TDUs under the stipulation, to convey this and other information.

The stipulation provides that parties shall continue workshops and market calls with REPs and other parties to plan and coordinate the transition of Oncor's McAllen/Mission customers to AEP Texas pursuant to any applicable ERCOT Protocols, Guides, and Other Binding Documents.

Docket 49402

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