Texas PUC Staff Propose New Pricing For Non-Volunteer POLR Service, Including New Cap On Monthly Increases

September 12, 2022

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

The following story is brought free of charge to readers by EC Infosystems, the exclusive EDI provider of EnergyChoiceMatters.com

Staff of the Public Utility Commission of Texas have filed a draft proposal for publication for revisions to the formula used to set provider of last resort (POLR) rates for non-volunteer POLR service (service from Large Service Providers, or LSPs)

Staff's proposal states, "This amended rule will update the POLR formulas for residential, and small and medium commercial customer classes to ensure that POLR rates protect POLR customers from excessive rates while ensuring the POLR providers are not overly exposed to risks associated with taking on unexpected customers following a POLR event."

For residential service, the LSP POLR rate would be determined using the existing formula, but with changes to the customer charge and energy charge as follows:

• LSP customer charge must be $0.09 (increased from $0.06 per kWh)

• Beginning on the 1st of each month, the LSP energy charge must be the average of the actual Real-Time Settlement Point Prices (RTSPPs) for the applicable load zone for the 30-day period ending on the 20th day of the preceding calendar month (the historical average RTSPP) multiplied by the number of kWhs the customer used during that billing period and further multiplied by 120%. The applicable load zone will be the load zone located partially or wholly in the customer’s TDU service territory with the highest average under the historical average RTSPP calculation.

• The LSP energy charge must not exceed 140% of the preceding month’s LSP energy charge multiplied by the cap adjustment factor. The value of the cap adjustment factor is set to 1.0 every calendar year. At any time commission staff can file a recommendation for the commission to set a different cap adjustment factor. A LSP offering POLR service must declare the cap adjustment factor on the EFL

Aside from the change in the customer charge, as noted above, the draft proposal for publication uses a 30-day historical average RTSPP, rather than the current use of the previous 12-month period ending September 1 of the preceding year for the historical average. As such, the draft proposal also omits the prior price cap of 120% of the previous year’s LSP energy charge, in favor of the new cap described above

For small and medium non-residential service, the LSP POLR rate would be determined using the existing formula, but with changes to the energy charge as follows (there is no change to the LSP customer charge for this class:

• Beginning on the 1st of each month, LSP energy charge must be the average of the actual RTSPPs for the applicable load zone for the 30-day period ending on the 20th day of the preceding calendar month multiplied by the number of kWhs the customer used during that billing period and further multiplied by 125%. The applicable load zone will be the load zone located partially or wholly in the customer’s TDU service territory with the highest average under the historical average RTSPP calculation.

• The LSP energy charge must not exceed 140% of the preceding month’s LSP energy charge multiplied by the cap adjustment factor. The value of the cap adjustment factor is set to 1.0 every calendar year. At any time commission staff can file a recommendation for the commission to set a different cap adjustment factor. A LSP offering POLR service must declare the cap adjustment factor on the EFL.

There is no proposed change to LSP pricing for large non-residential customers

Project No. 53820

ADVERTISEMENT

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Supervisor-Commercial Operations
• NEW! -- Customer Data Specialist
• NEW! -- Director, Regulatory Affairs, Retail Supplier
• NEW! -- Account Manager Project Manager
• NEW! -- Retail Energy Policy Analyst
• NEW! -- Incentive Specialists
• NEW! -- Utility Rates Specialist
• NEW! -- Customer Onboarding Specialist
• NEW! -- Energy Performance Engineer
• Controller for C&I-only Retail Electricity Supplier
• Senior Retail Transportation Analyst (Gas Transport Services)

HOME

Copyright 2010-22 Energy Choice Matters.  If you wish to share this story, please email or post the website link; unauthorized copying, retransmission, or republication prohibited.