Texas PUC Commissioner Says CenterPoint-TDU May Seek Recovery Of Mobile Generation Costs In DCRF Proceeding, But Only Through Separate Rider -- EnergyChoiceMatters.com

Texas PUC Commissioner Says CenterPoint-TDU May Seek Recovery Of Mobile Generation Costs In DCRF Proceeding, But Only Through Separate Rider

June 15, 2022

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Reporting by Paul Ring • ring@energychoicematters.com

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In a memo in advance of tomorrow's Texas PUC open meeting, PUC Commissioner Will McAdams said that CenterPoint Energy Houston Electric may recover costs of temporary mobile generation in a distribution cost recovery factor (DCRF) proceeding, but only as a separate rider and not part of the DCRF rider

Interpreting statutory language concerning mobile generation costs, an ALJ has previously ruled that the mobile generation costs cannot be recovered in this specific DCRF proceeding since the PUC has not previously approved an allocation of mobile generation costs to each rate class through a rate case (e.g. creation of allocation factors in a rate case, as already done for other costs permitted to be recovered via DCRF)

CenterPoint Energy Houston Electric appealed the ALJ's order

See more background here

Addressing the mobile generation statutory language (PURA § 39.918), which makes reference to DCRF proceedings, McAdams wrote, "I believe that the most reasonable interpretation of this interplay is to say that CenterPoint [TDU] may request recovery of § 39.918 costs through a DCRF proceeding, but not as part of the DCRF rider itself. The § 39.918 costs should be in a separate rider from the DCRF rider. Therefore, I recommend that the Commission grant CenterPoint's [TDU] appeal in part and reverse the SOAH ALJ's decision to dismiss but with additional direction."

Docket 53442

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