Texas PUC Staff Seeks Commission Direction On Changes In Customer Protection Rules

--- Fixed Rate Pass-Throughs & Ancillary Services, Permissible Index Plans, POLR Price Cap

November 30, 2021

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Reporting by Paul Ring • ring@energychoicematters.com

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Staff of the Public Utility Commission of Texas have sought direction from the Commission on four topics related to the prior publication of proposed amendments to 16 TAC §25.43, 25.471, 25.475, 25.479, and 25.498 and new TAC §25.499, related to the retail electric market and customer protection rules

As previously reported, in issuing for comment proposed changes to the above-listed rules, the PUC said that it will consider, among other things, whether to prohibit all index products, and any product with a pass-through of ancillary services, for residential and small commercial customers

The proposal issued for comment by the PUC would, among other things, require a new signed Acknowledgement of Risk for any residential and small commercial customer product which has a separate assessment of ancillary service charges, and any residential and small commercial indexed product

See our prior story here for background on the specific proposed changes, as well as changes not reflected in the published proposal, but which the PUC said it would further consider

Staff sought Commission direction on the following topics:

• Should the adopted rule specify that ancillary service charges are a component of the price for a fixed rate product?

• Should the adopted rule allow residential and small commercial customers to enroll in indexed retail electric products not explicitly prohibited by HB 16 or products that allow for pass-through of ancillary service charges, subject to completing an acknowledgement of risk (AOR)? (See also, Question 2, Proposal for Publication)

• For instances in which the Commission deems an AOR to be appropriate, should the customer be required to explicitly agree to the AOR either verbally, electronically, or through a voice recording?

• Should the rule impose a year-over-year cap on the increase to the maximum provider of last resort (POLR) prices calculated under the rule? If so, what should that cap be? (See also, Question 1, Proposal for Publication)

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