Texas PUC Commissioner: We Should "Re-Look" At Transition To Competition At Entergy Texas

Invites Stakeholder Comment On Whether It's "Time To Move Forward" With Choice At Entergy Texas

October 7, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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During today's Texas PUC opening meeting, Commissioner Jimmy Glotfelty said that the PUC needs to "re-look" at a transition to competition at Entergy Texas

Glotfelty's comments were prompted by PUC consideration of a final true up of Entergy Texas's prior transition to competition costs

Entergy Texas's transition to competition has been subject to several PUC dockets, but in 2009 legislators required Entergy to withdraw its then-current plan. A transition to competition for Entergy Texas hasn't been formally considered since such time. However, the PUC retains authority to consider a future transition to competition at Entergy Texas subject to certain conditions being met

EnergyChoiceMatters.com presented a review of conditions for a transition to competition at Entergy Texas, and the other remaining vertically integrated areas of Texas, at the 2020 fall Energy Marketing Conference. A copy of such presentation reviewing such conditions can be found here

Most of the concern with the prior Entergy Texas transition to competition plan related to the cost of transmission to integrate into the ERCOT market. Since such time, Entergy has joined the Midcontinent ISO, which does have existing members with full retail choice (Ameren Illinois) and others with more limited choice (the Michigan utilities). EnergyChoiceMatters.com notes that, while retail choice in MISO may be the quickest path for competition at Entergy Texas, ERCOT integration could still be more beneficial to Entergy Texas customers to the extent the cost of ERCOT integration is less than the expected cost of new, federally-directed socialized transmission construction to integrate renewables in areas outside of Texas recovered though MISO rates set by FERC

Glotfelty noted that ratepayers in Southeast Texas have spent a couple hundred million dollars on Entergy Texas's transition to competition with nothing to show for it

"Competition's been good for the rest of the state," Glotfelty said

Glotfelty believes that some of the conditions necessary to adopt a transition to competition would be sufficed given Entergy Texas's MISO membership (such as open access)

"Some kind of transition ought to be re-looked at," Glotfelty said

Glotfelty suggested a process to allow stakeholders to file information and comments with the PUC concerning whether they want competition

"We need to re-look at this," Glotfelty said, and stakeholders need to tell the PUC if: "is it time to move forward with competitive choice in the Southeast region?"

PUC Chairman Peter Lake said Glotfelty's comments were, "well put"

Commissioner Will McAdams "echo[ed]" Glotfelty's comments

McAdams agreed that there should be a mechanism at the PUC to allow consumers to express if they want competition

McAdams did note that legislators representing communities served by Entergy Texas have expressed satisfaction that Entergy Texas has remained outside of ERCOT and subject to its traditional structure

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