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Texas TDU In ERCOT Withdraws Proposed Tariff Which Would Have Banned Behind-the-Meter Generation By Third Parties
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As part of an unopposed rate case settlement at the Texas PUC, Texas-New Mexico Power Company is withdrawing all of its tariff provisions which would have imposed new restrictions on behind-the-meter (BTM) generation.
TNMP in its initial rate filing had proposed to add the following provisions to its tariff:
• "Any behind-the-meter or on-site generation that provides, transmits, or otherwise delivers
electric energy to a retail customer other than the owner or lessee of the generation
facility shall be considered retail service and is subject to TNMP’s exclusive service rights
within its certificated area"
• "No third-party transmission provider, power marketer, or generation may interconnect
facilities or deliver electric energy directly to any retail customer within TNMP’s
certificated area without TNMP’s consent"
• "Any arrangement that provides electric power across property lines or between separate
premises within TNMP’s certificated territory shall be deemed a violation of TNMP’s CCN"
Industrial customers, data centers, and competitive power providers had objected to these proposed BTM tariff provisions, arguing that the proposals would prohibit many of the BTM structures and ownership designs in use by customers today, including those implicitly permitted by statute and/or PUC rule or order
As an example, the Texas Industrial Energy Consumers and Texas Competitive Power Advocates said in testimony that the language proposed by TNMP would "likely" prohibit BTM generation owned by another third-party
The Joint Data Center Group said in testimony that the "sweeping" BTM tariff proposed by TNMP would, "limit the market structures and creativity to
build distributed generation (BTM solar, batteries, back-up NG gen, etc.) and handicap
the industry[.]" The proposed BTM tariff, the Joint Data Center Group had said, would eliminate an "innumerable number of vehicles to conduct business," and would invalidate current constructs
In RFI responses, TNMP had indicated that the intent of the BTM tariff language was not to broadly prohibit a number of current commercial arrangements, but opponents expressed concern that the tariff language was blunter than the vision expressed by TNMP in seeking the new BTM tariff
In rebuttal testimony, TNMP had said, "TNMP's proposed BTM tariff language is
designed to avoid confusion by ensuring that grid-connected BTM retail customers
receiving retail delivery service within TNMP's service territory remain under the tariff of
the utility that is actually responsible for retail delivery service."
In rebuttal testimony, TNMP took issue with an "ESI ID-only scenario" in which a load in a BTM
arrangement is electrically connected to the physical delivery infrastructure of a TSP
that does not have the right to serve retail customers in the location of the load, yet
seeks the certificated TDSP for that territory to create an ESI ID and treat the load as a
retail customer even though the TDSP does not have facilities for actually delivering
retail service at the load location. "This effectively attempts to obtain the benefits of retail
market participation and settlement without a corresponding physical service
relationship, which improperly shifts market and compliance responsibilities onto a utility
that is not legally authorized to serve the load," TNMP had said in rebuttal testimony
Under the settlement, TNMP is withdrawing the proposed BTM tariff provisions, "from consideration in this proceeding." Such withdrawal does not prevent consideration in another proceeding to the extent TNMP wishes to again propose the BTM provisions
The stipulation, which is said to be unopposed, was signed by TNMP, PUCT Staff, the Office of Public Utility Counsel, various cities with original jurisdiction, Texas Competitive Power Advocates, TIEC, and various data center intervenors, among other parties. The Texas Energy Association for Marketers is not opposed to the settlement.
In addition to setting new base delivery rates, the settlement would establish three new riders applicable to retail electric providers: a Hurricane Cost Recovery Factor (Rider HCRF), a resumption of the rate case expense rider (RCE), and an Interim Surcharge rider (Rider IS)
Rider IS would essentially grant TNMP the revenues it would receive under interim rates without implementing interim rates at this time prior to a final order
Rider IS would be set to recover the difference in revenue between
the new delivery rates established upon PUC approval of the settlement, and those delivery rates in effect on May 22, 2026, for the period of time between May 22 and the final order adopting new rates
As such, the rates under Rider IS would not be known until the date of PUC disposition of the settlement (the settlement sets the Rider IS rates as zero as a placeholder)
New delivery rates and the other new rider charges proposed under the settlement are below for select customer classes:
Under the stipulation, the new delivery rates, if approved, would be effective for electricity bills rendered on and after
45 days from the date of a PUC order approving the rates.
The settlement would also update various Discretionary Service Charges, with decreases for certain services for standard meters, and increases for other services, including for new standard meters, and for standard meters at premium locations. Select proposed changes are noted below (some DSCs which are not being changed are also listed due to interest in there being no change):
Docket 58964
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May 29, 2026
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Reporting by Paul Ring • ring@energychoicematters.com
TNMP Distribution Rates
Current Stipulation
Residential
Customer Charge
per month $1.13 $1.70
Meter Charge
per month $6.72 $5.86
Distribution System Charge
per kWh $0.025670 $0.046020
Secondary <= 5 kW
Customer Charge
per month $0.74 $1.75
Meter Charge
per month $7.62 $6.40
Distribution System Charge
per kWh $0.042580 $0.002980
Rider HCRF New
Residential $0.000882 / kWh
Secondary <= 5 KW $0.000591 / kWh
Secondary > 5 KW $0.191909 / Actual kW
Primary $0.153443 / Actual kW
Primary Substation $0.002623 / Actual kW
Transmission $0.000026 / Actual kW
Lighting $0.000913 / kWh
Rider RCE New
Residential $0.000180 / kWh
Secondary <= 5 KW $0.000114 / kWh
Secondary > 5 KW $0.034147 / Actual kW
Primary $0.025194 / Actual kW
Primary Substation $0.023369 / Actual kW
Transmission $0.006808 / Actual kW
Lighting $0.000439 / kWh
TNMP Discretionary Service Charges
(charges are for existing standard meter,
non-premium location unless otherwise noted)
Current Proposed
Move-In
Existing Standard Meter 1.50 1.00
Move-In
New Standard Meter 36.00 54.00
Disconnection For Non-Payment (DNP)
Disconnection at Meter 1.50 1.50
Disconnection at
Premium Location 104.00 163.00
Reconnection After DNP
Reconnection at Meter 1.50 1.50
Reconnection at Premium Location
Standard Reconnect 101.00 145.00
Same Day Reconnect 236.00 353.00
Weekend 236.00 353.00
Holiday 340.00 515.00
Meter Reading for the Purpose of
a Self-Selected Switch
0.40 0 10
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