Texas PUC Staff Proposes Draft Rule To Allow TDUs To Implement New Rider For Resiliency Plans Under New Statute

September 13, 2023

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Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Staff of the Public Utility Commission of Texas have filed, under a recommended draft proposal for publication, proposed new rules at 16 Texas Administrative Code (TAC) §25.62 to implement Public Utility Regulatory Act (PURA) §38.078, as enacted by House Bill 2555 during the Texas 88th legislative session (R.S).

The proposed rule would establish the requirements and procedures for an electric utility to submit a resiliency plan to enhance the resiliency of its transmission and distribution systems.

Staff's draft includes various rules for cost recovery, including, consistent with the bill, creation of a new rider, or recovery as part of the customary TCRF or DCRF proceedings

Staff's draft includes provisions authorizing creation of a Resiliency Cost Recovery Rider, which would provide a mechanism for an electric utility to request to recover certain resiliency-related costs through such resiliency cost recovery rider (RCRR) outside of a base-rate proceeding or a distribution cost recovery proceeding as part of a resiliency plan, consistent with Public Utility Regulatory Act (PURA) § 38.078(i)

Additionally, Staff's draft includes provisions authorizing a Resiliency Cost Recovery Factor that provides a mechanism for an electric utility to request to recover certain resiliency-related costs deferred as a regulatory asset through a resiliency cost recovery factor (RCRF) rate as part of a transmission, or distribution, cost recovery factor proceeding, consistent with PURA § 38.078(k). Such provisions would allow, where authorized, the utilities to include RCRF costs as part of a TCRF or DCRF application

Project 55250

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