Pioneer Natural Resources Seeks Review of REP Services as Part of Sharyland Transition to Competition

Pioneer Natural Resources USA, Inc., an exploration and production company, has sought to make, "[i]ssues related to the manner in which retail electric providers ('REP') offer service upon the initiation of unbundling in Sharyland's service area and as Sharyland's unbundled service matures," part of the issues to be addressed in hearings concerning Sharyland's proposal to transition the former Cap Rock territories to retail competition (PUCT Docket 39592).

As first reported by Matters (7/14), Sharyland's proposal would expand choice to 44,000 new customers in Texas.

Specifically, Pioneer Natural Resources offered the following concerning its proposed REP-related issues:

"This issue seeks to develop a record regarding how REPs will provide services as the Company unbundles. It could, for example, focus on the extent to which REPs may be prepared to offer aggregated, load following rates to oil and gas customers that will give such customers recognition of the diversity of their loads. It could also address similar issues that are specific to other customer classes, such as the irrigation, cotton ginning, and residential classes.

"Pioneer anticipates that there may be claims that REP issues cannot be addressed because the Commission lacks jurisdiction over REP rates and services.

"However, the REPs have intervened in this case, subjecting themselves to the jurisdiction of the Commission in this proceeding.

"They have intervened based on their claims that the conversion affects them and is affected by them. Certainly, their participation as retailers in Sharyland's unbundled market affects Sharyland's retail customers. And, while the Commission may have limited authority over REPs' rates and service offerings, it clearly does have jurisdiction over the configuration and functioning of the unbundled market. Having intervened and made themselves subject to the Commission's jurisdiction in this case, the REPs should not be exempted from review of their role in issues related to the conversion."

Pioneer Natural Resources is principally concerned with establishing a separate oil and gas rate class.

REPs' proposed list of issues include whether a single delivery tariff should apply to the former Cap Rock territories and Sharyland's McAllen division (which currently offers choice), and whether the filing of a delivery rate case for the Cap Rock territories in January 2013 would provide sufficient time for rates to be set prior to the anticipated January 1, 2014 start date for choice at the former Cap Rock territories.