Texas Utility In ERCOT Seeks PUC Approval For New Energy Storage Tariff (Wholesale Distribution Service - Distributed Generation)

February 25, 2022

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

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AEP Texas Inc. ("AEP Texas") petitioned the Public Utility Commission of Texas ("Commission") to approve a new Wholesale Distribution Service Distributed Generation ("WDS DG') Energy Storage Tariff pursuant to 16 Tex. Admin. Code ("TAC") § 25.191.

AEP Texas has received requests from interested entities and has entered into Interconnection Agreements with several of these entities. AEP Texas submits this application for approval of a new WDS DG Tariff to establish rates and other terms and conditions for distributed generation energy storage facilities that take wholesale service at distribution voltage from AEP Texas.

The proposed WDS DG Tariff is applicable to energy storage facility DG customers who take wholesale service at distribution voltage from AEP Texas. AEP Texas is proposing WDS DG Primary Service for facilities that take service within a short distance of one of AEP Texas' substations with a dedicated line from the substation to the customer's facilities

Any electricity purchased for auxiliary facilities, such as lighting for office space, should be treated as a retail sale, subject to the appropriate retail tariff. , WDS DG customers will be charged as a retail customer for auxiliary service for which there is a Retail Electric Provider assigned.

As defined in the tariff, customers who receive wholesale distribution service for delivery to energy storage systems to charge the energy storage facilities supplied at one point of interconnection and measured through one meter necessary to support the transmission of energy for purposes of resale in accordance with 16 TAC §§ 25.5, 25.191, 25.200-25.203 and 25.501 are eligible for service under the proposed WDS DG Tariff.

Service to a customer' s auxiliary facilities located at the same location will be provided pursuant to one of AEP Texas' retail rate schedules. Schedule WDS DG is not available for auxiliary retail service to the WDS DG facility.

AEP Texas' proposed pricing is based on the currently approved Primary Voltage Service Tariff prices (Tariff 6.1.1.1.4). The proposed tariff rates will consist of a customer charge, a metering charge, a Distribution System Charge, and the Distribution Cost Recovery Factor ("DCRF"). The customer and metering charges are fixed charges that will recover costs associated with billing and metering the customer for WDS DG service. The Distribution System Charge is based on the customer's usage and is designed to collect costs associated with delivering power and energy across AEP' s distribution system to the customer' s DG facility. The DCRF charge is calculated based on the customer's usage and is designed to recover incremental distribution capital costs incurred after the Company' s last base rate case.

Specifically, the WDS DG Distribution Service Charges would be as follows:

• Customer Charge: $7.35 per Month

• Metering Charge: $126.87 per Month

• Distribution System Charge: $3.112 per NCP kW Billing Demand

• Distribution Cost Recovery Factor - DCRF: $0.423685 per NCP kW Billing Demand

Upon approval, under 16 TAC § 25.191(d), a wholesale transmission customer will be eligible for service under the proposed revised tariff upon receipt by AEP Texas of a valid request for interconnection to the distribution system. As proposed, the transmission customer will be required to pay an upfront cost-in-aid-of construction ("CIAC") charge to AEP Texas for the construction of any additional distribution facilities necessary to interconnect customer's applicable generation resource.

Docket 53267

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