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Texas PUC Approves CenterPoint-TDU Rate Case Settlement; New Delivery Charges Set For Retail Electric Providers
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The Texas PUC today approved a settlement in the base rate proceeding of CenterPoint Energy Houston Electric (CenterPoint Houston or CNP)
The PUC did not modify terms of the settlement agreement, nor any of the rates thereunder
The PUC did note that certain of the agreements among settling parties appear to attempt to bind future Commissions
Commissioners said that while the order adopting the settlement would recite that parties have agreed to such terms, the order will note that an order cannot bind a future Commission
As previously reported, the unopposed stipulation will reduce the amount charged to retail electric providers under flat monthly charges, and will also set the level for a rider to refund amounts related to tax law changes.
The stipulation provides that CenterPoint
Houston will recover all existing and future transmission-related costs through its
transmission cost recovery factor (TCRF) instead of through base rates.
The Distribution Cost Recovery Factor will be set to zero.
Furthermore, CenterPoint Houston will not
file a DCRF proceeding during the 2020 calendar year. When updating its distribution rate
base through future DCRF proceedings, CenterPoint Houston will update its distribution
rate base to account for the effects of changed accumulated deferred federal income tax
(ADFIT) and excess deferred income tax (EDIT) regulatory liability balances, in each
proceeding requesting an update of its distribution rates.
Under the adopted stipulation CNP will continue to assess the CNP monthly flat customer charge on the basis of per Retail Customer per Month
However, the monthly flat metering charge will be revised to be charged on the basis of per Meter per Month, rather than on a per-customer basis
For customers with a single meter (putting aside any additional costs from the new per-meter allocation), the combined monthly flat charge (customer and metering) will decrease by $1.08 for residential customers, and $1.44 for Secondary Less Than Or Equal To 10 kVA customers
Under the stipulation, a new Rider UEDIT - Unprotected Excess Deferred Income Taxes Credit will refund to REPs certain excess deferred income tax amounts.
CenterPoint Houston shall refund through Rider UEDIT and its Wholesale
Transmission Service tariff an unprotected excess deferred income tax (UEDIT)
amount of $64,903,763, protected excess deferred income tax amount of $18,659,227,
and gross up of $21,886,079 for a total UEDIT refund of $105,449,069 plus carrying
costs. The refund and amortization period for UEDIT for Residential Service,
Secondary Service Less Than or Equal to 10 KVA, Street Lighting Service, and
Miscellaneous Lighting Service shall be approximately 30 months beginning with the
effective date of the rates authorized in the rate case. The refund and amortization period for UEDIT for
Secondary Service Greater Than 10 KVA, Primary Service, and Transmission Service shall
be approximately 36 months beginning with the effective date of the rates authorized in
the rate case
The refunds to be provided to REPs shall be as follows
CenterPoint Houston agrees to reimburse cities participating in the proceeding for rate case expenses incurred in all dockets subject to Docket No. 49595.
However, under the stipulation, "CenterPoint Houston agrees not to seek recovery of rate case expenses requested in Docket
No. 49595, including expenses associated with this proceeding."
As a result of the stipulation, the key TDU charges that will result from the rate case are as follows for residential and small commercial customers (note: riders not impacted by the rate case such as EECRF and ADFITC are not listed)
The stipulation contains the following ring-fencing measures, among others, concerning CNP affiliates:
• CenterPoint Houston shall not pledge its assets in respect of or guaranty any debt or
obligation of any of its affiliates. CenterPoint Houston shall not pledge, mortgage,
hypothecate, or grant a lien upon the property of CenterPoint Houston except pursuant
to an exception in effect in CenterPoint Houston’s current credit agreement, such as the
first mortgage and general mortgage.
• CenterPoint Houston shall maintain its own stand-alone credit facility, and CenterPoint
Houston shall not share its credit facility with any regulated or unregulated affiliate.
• No CenterPoint Houston assets may be used to secure the debt of CNP or its non-
CenterPoint Houston affiliates.
• CenterPoint Houston shall not hold out its credit as being available to pay the debt of
any affiliates (provided that, for the avoidance of doubt, CenterPoint Houston is not
considered to be holding its credit out to pay the debt of affiliates, or in breach of any
other ring-fencing measure, with respect to the $68 million of CenterPoint Houston
general mortgage bonds that currently serve as collateral for certain outstanding CNP
pollution control bonds).
• Without prior approval of the Commission, neither CNP nor any affiliate of CNP
(excluding CenterPoint Houston) may incur, guaranty, or pledge assets in respect of
any incremental new debt that is dependent on: (1) the revenues of CenterPoint Houston
in more than a proportionate degree than the other revenues of CenterPoint Houston;
or (2) the stock of CenterPoint Houston.
• CenterPoint Houston shall not transfer any material assets or facilities to any affiliates,
other than a transfer that is on an arm’s length basis consistent with the Commission’s
affiliate standards applicable to CenterPoint Houston.
• Except for its participation in an affiliate money pool, CenterPoint Houston shall not
commingle its assets with those of other CNP affiliates.
• Except for its participation in an affiliate money pool, CenterPoint Houston shall not
lend money to or borrow money from CNP affiliates.
Docket 49421
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February 14, 2020
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Copyright 2010-20 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
Rider UEDIT
Unprotected Excess Deferred Income Taxes Credit
Class Refund Time Period
Residential ($0.000629) Per kWh 30 Months
Secondary =<10 kVA ($0.000525) Per kWh 30 Months
Secondary >10 kVA ($0.116823) Per kVA* 36 Months
Primary ($0.066524) Per kVA* 36 Months
Transmission ($0.066511) Per kVA^ 36 Months
Street Lighting ($0.003967) Per kWh 30 Months
Misc. Lighting ($0.000919) Per kWh 30 Months
* Per Billing kVA
^ Per 4CP kVA
RESIDENTIAL
Current Stipulation Change Billing Unit
Base Rates
Customer $1.62 $2.30 $0.68 per customer
Metering $3.85 $2.09 ($1.76) per meter
Transmission $0.008439 $0.00 ($0.008439) per kWh
Distribution $0.016489 $0.020314 $0.003825 per kWh
Riders
TCRF $0.010490 $0.014209 $0.003719 per kWh
DCRF $0.001145 $0.000000 ($0.001145) per kWh
UEDIT N/A ($0.000629)($0.000629) per kWh
SECONDARY =<10 kVA (Small)
Current Stipulation Change Billing Unit
Base Rates
Customer $1.61 $2.26 $0.65 per customer
Metering $4.41 $2.32 ($2.09) per meter
Transmission $0.004437 $0.00 ($0.004437) per kWh
Distribution $0.012218 $0.015504 $0.003286 per kWh
Rider
TCRF $0.006284 $0.008421 $0.002137 per kWh
DCRF $0.001448 $0.000000 ($0.001448) per kWh
UEDIT N/A ($0.000525)($0.000525) per kWh
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