PUCT Approves Revised TCRF Rule

The PUCT approved without modification Staff's proposal for adoption to amend the Transmission Cost Recovery Factor (TCRF) rule, which will allow distribution service providers to include in their TCRF charged to REPs an adjustment that reflects the under- or over-recovered TCRF transmission costs accumulated over a prescribed six-month period (Only in Matters, 9/23/10).

Additionally, the rule requires an adjustment to the TCRF every six months, while the prior rule provided the distribution service provider with the discretion to revise the TCRF every six months.

Specifically, the adopted rule requires distribution service providers to update their TCRF twice per year, on March 1 and September 1, to pass through the wholesale transmission cost changes billed by a Transmission Service Provider.

For the March 1 update, the distribution service provider will be required to file its TCRF no later than December 1, and for the September 1 update, no later than June 1.

Within 45 days after a distribution service provider files a request to update its TCRF, the Commission shall issue an order establishing the amount of the revised TCRF and suspend the effective date of the revised TCRF as necessary so that the new TCRF charges will take effect on March 1 or September 1, as applicable. This provision is meant to provide certainty to REPs with respect to TCRF charges.