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Texas PUC Staff File Proposed Rule To Replace 4CP Transmission Cost With 12CP; Minimum Billing Demand For Large Loads
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Staff of the Texas PUC have filed recommended proposed rule language to replace the current 4CP transmission cost assignment methodology with a 12CP methodology
Staff's proposal would use a 30-minute interval to measure 12CP
Staff's proposal would also require, "adjustments to the calculation of DSP-level billing determinants that maintain alignment between wholesale transmission cost recovery and retail transmission cost recovery."
Staff's proposal also requires the use of a minimum billing demand for large load customers and requires investor-owned utility distribution service providers to update class allocation factor values annually
With regards to the large load provision, Staff's proposed rule states, "A REP serving a large load customer, as determined by §25.194 of this title (relating to Large Load Interconnection Standards), must be charged for that customer based upon a minimum billing demand upon interconnection of that customer, and for a period of no less than 15 years after interconnection."
Such minimum billing demand for a large load customer must be the greater of:
(A) the large load customer’s contracted peak demand, as defined in §25.194 of this title (relating to Large Load Interconnection Standards);
(B) the highest non-coincident peak demand placed by the large load customer on the system in the past year; or
(C) the large load customer’s 12CP demand consistent with the most recent ERCOT 12CP intervals, as defined in §25.192 of this title (relating to Transmission Service Rates).
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June 12, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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