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Texas PUC Staff Issue More Questions On Transmission Cost Allocation Policy, Set Workshop
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Staff of the Texas PUC issued further questions for stakeholder comment in the PUC's review of transmission cost recovery allocation and policies
Staff will hold a public workshop on November 10, 2025 in the transmission cost recovery proceeding
Staff said that comments should clearly distinguish issues related to wholesale transmission cost recovery from issues related to retail transmission cost recovery.
Among other questions, Staff asked for comment on:
• If the Commission adopts a coincident peak (CP) rate design:
a. What monthly CPs should be included?
b. Should "floating" CP intervals, not confined to specific months, be included? If so, how many floating intervals should be included, and should the floating intervals be confined to certain time periods (e.g. seasons)?
c. Should the peak intervals be broadened? If so, to how long, and what would be the likely negative effects of broadening the peak intervals (e.g., 30 minutes, 1 hour, 4 hours)?
• If the Commission adopts a non-coincident peak (NCP) rate design:
a. What values should be used (e.g., distribution service provider (DSP) NCP values or retail customer-level NCP values)?
b. If customer-level NCP or other load data should be used for wholesale transmission cost recovery, how should DSP-level customer data be collected and provided to the Commission? How should disputes associated with such data be addressed?
• If the Commission adopts a hybrid NCP and CP rate design, what monthly CPs should be included?
• For each of the following methodologies, what are the pros and cons, and potential impacts to the wholesale market:
a. Coincident peak
i. 365CP
ii. 12CP
iii. 7CP (current 4CP + December through February CPs)
iv. 6CP (current 4CP + 1 floating winter CP + 1 additional floating summer CP)
v. 5CP (current 4CP + 1 floating winter CP)
b. Non-coincident peak
i. DSP NCP
ii. A "dual rate/hybrid" Wholesale Transmission Service rate design where some X% of Transmission Cost of Service is recovered via 4CP or other CP rate design, with the remaining % recovered via DSP NCP
c. DSP total energy usage
Staff also filed a draft outline for the report which will be developed through the proceeding. Staff will take feedback on the draft outline during the November 10 workshop
Among other things, the outline indicates that, in a background section of the report, the report will include a discussion of, "Disparate ability for large loads to practice 4CP response"
The draft outline indicates that the report will include an "Additional Considerations" section, with a topic to be included in such section listed as, "Nonbypassable costs"
See Staff's full list of questions here
Project 58484
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October 28, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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