REPs Urge PUCT to Work Further on Simultaneous Implementation of New TDU Rate Components

The Retail Electric Provider Coalition submitted comments to the PUCT encouraging the Commission to fully implement PURA Sec. 36.210(b)(1), which seeks to minimize the impact of new and revised TDU rates by directing electric utilities to "implement simultaneously all nonfuel rates to be adjusted in a 12-month period that are charged by the utility to retail electric providers," to the extent possible (39465).

This directive in PURA is contained within a larger provision explicitly authorizing a Distribution Cost Recovery Factor (DCRF), which will allow changes in TDU rates outside of base rate cases. As previously reported, the PUCT has published a proposal for comment to implement the DCRF (see 7/4).

REPs were supportive of the PUCT's proposal to implement the DCRF, including limiting applications to change the DCRF to once annually; requiring 46 days notice prior to implementation of any approved new rates; and the system-wide implementation of the updated DCRF on the same day, unless good cause exists otherwise.

In particular, new DCRFs would be implemented on September 1 absent good cause, the same date for new Transmission Cost Recovery Factors applicable to REPs, which REPs supported as a first step in aligning the dates for distribution rate and rider changes.

However, REPs urged the Commission to continue to work in future proceedings towards comprehensively achieving the objective of simultaneous rate implementation in PURA 36.210(b)(1). "Such proceedings include contested cases in which new or revised TDU rates are adopted and rulemaking projects addressing specific types of TDU rates," REPs suggested.

Various riders which may change independently of base rates include transition charges, the advanced metering surcharges, the energy efficiency cost recovery factor, and other charges.

"The Commission's continued pursuit of this goal will help reduce the number of price changes experienced by retail electric customers each year and will place downward pressure on the overall costs incurred by REPs (and in turn, borne by their customers) in participating in the competitive retail electric market. Aligning the effective dates of TDU rate adjustments in a 12- month period to the maximum degree possible is the simplest way of accomplishing those results," REPs said.