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 Email This Story Copyright 2010-19 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
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
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.