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Texas REPs Seek Elimination Of Inadvertent Gain Charge
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In a statement of position in Oncor's rate case at the Texas PUC, the Retail Electric Provider (REP) Coalition said that the Inadvertent Gain Discretionary Service Charge at Oncor should be discontinued in its entirety, with the underlying costs recovered through base
rates.
As first reported by ECM, Oncor proposes to slash the Inadvertent Gain Charge from $35.65 to $4.00
While the REPs support the proposed reduction, the REPs further said that the appropriate methodology for recovering costs related to addressing Inadvertent Gains is through base rates -- reclassified as an
Operations and Maintenance expense -- rather than through unique charges assessed against a
single REP per incident
The REP Coalition said, "This service charge is assessed exclusively upon the gaining REP even
though the gaining REP is not always the source of the incorrect information."
"The source of the
erroneous information is often an applicant, customer, or a third party -- such as a broker -- who provides the inaccurate data during the initial enrollment process in ways that cannot be verified
by the REP," the REPs said
"The IAG process better fits the
definition of system service because it is a 'service that is essential to the transmission and
distribution of electricity. . .' and an administrative activity 'necessary to maintain retail electric
provider billing account and records.' The unraveling of an IAG is exactly the type of
administrative activity that is expressly designated as a TDU billing system service," the REPs said
Docket 58306
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October 30, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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