Texas PUC Directs Staff To File New Petition For Declaratory Order Concerning Treatment Of ERCOT Securitization Charges By REPs In Customer Rates (Is Pass-Through Permissible?)

September 14, 2023

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

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The Public Utility Commission of Texas has instructed PUC Staff to file, in a separate docket, a petition for a declaratory order concerning Staff's request for "guidance" from the PUC on two issues related to the treatment of ERCOT Securitization Charges by retail electric providers

As previously reported, Staff had sought, as guidance from the PUC, confirmation that: (1) ERCOT Securitization Charges (from the uplift financing program for certain Uri costs) are not a pass-through charge, and (2) Opt-outs under Public Utility Regulatory Act (PURA) § 39.653(d) are not transferable

As more fully described in our prior story, Staff has said that "in accordance with 16 TAC § 25.475(b)(5), the price of 'fixed rate product' may not vary to accommodate changes in the amount of Securitization Charges."

See more background on the issue here

The Commission said that the issue should be addressed in a formal petition for a declaratory order, instructing Staff to make such a filing

"Securitization continues to be a complex process that raises novel issues for the Commission to consider. And I'm sure our market participants want clear guidance from the Commission," Commissioner Will McAdams said

However, McAdams said that, "This compliance docket [52710, in which Staff filed its request for guidance] is not an appropriate home for addressing the issues in question. We need somewhere to build a record on the issues, and, if necessary, get briefing from market participants."

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