ERCOT Seeks Texas PUC Ruling Excluding Lubbock Customers From Uri Securitization Charges (Impacts REP Pricing) -- EnergyChoiceMatters.com

ERCOT Seeks Texas PUC Ruling Excluding Lubbock Customers From Uri Securitization Charges (Impacts REP Pricing)

January 10, 2024

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Reporting by Paul Ring • ring@energychoicematters.com

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ERCOT today filed two separate petitions at the Texas PUC seeking orders declaring that customers within Lubbock Power & Light will not be subject to various Uri securitization charges under both PURA Subchapter N and Subchapter M

Under the sought findings, LSEs (and the QSEs that represent them) serving the Lubbock Area Load would be prohibited from assessing or passing through to those customers any costs or charges related to Securitization Uplift Charges.

LP&L was not part of ERCOT during winter storm Uri. A special carve-out in PURA has exempted LP&L from the charges, describing its status as a muni utility, but with the introduction of choice, ERCOT is seeking a ruling from the PUC confirming that the exemption from the Uri charges will still apply, even though LP&L will no longer be an LSE, and will rather serve as a TDSP

ERCOT said, "ERCOT anticipates that most, if not all, of the REPs that will sell electricity to the Lubbock Area Load are currently subject to and assessed uplift charges. Of concern, it is ERCOT's understanding that some of the REPs that intend to enter the Lubbock area have previously advertised to Lubbock customers that they will be subject to uplift charges, while other REPs have advertised the opposite."

With regards to Subchapter N, ERCOT has filed a petition in PUC Docket No. 56119, Petition of Electric Reliability Council of Texas, Inc. for Expedited Declaratory Order Regarding Public Utility Regulatory Act Chapter 39, Subchapter N. In its petition, ERCOT seeks, on an expedited basis, a PUC order declaring that

(1) The exemption from the assessment of Securitization Uplift Charges applicable to the City of Lubbock, acting by and through its municipally owned utility, Lubbock Power and Light, (LP&L) under PURA § 39.151(j-1) and the Debt Obligation Order issued by the PUC in PUC Docket No. 52322, Application of Electric Reliability Council of Texas, Inc. for a Debt Obligation Order Pursuant to Chapter 39, Subchapter N of the Public Utility Regulatory Act, will remain in effect for the load of end-use customers in LP&L’s service area (referred to as the Lubbock Area Load) upon the commencement of the City of Lubbock’s transition to retail competition;

(2) ERCOT must not assess Securitization Uplift Charges to Qualified Scheduling Entities (QSEs) representing Load Serving Entities (LSEs) for the portion of load they serve that is the Lubbock Area Load;

(3) ERCOT will implement a process to exclude the Lubbock Area Load from any other load served by an LSE to ensure that Lubbock Area Load is not assessed Securitization Uplift Charges and not included in the calculation of Securitization Uplift Charges; and

(4) LSEs (and the QSEs that represent them) serving the Lubbock Area Load are prohibited from assessing or passing through to those customers any costs or charges related to Securitization Uplift Charges.

In a separate petition (56122), ERCOT sought similar findings with respect to Subchapter M

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