Advisory Staff Files Draft List of Issues for Sharyland Transition to Competition

PUCT Commission Advising has filed a draft preliminary order addressing a list of issues concerning Sharyland Utilities' proposal to transition the four former Cap Rock service areas to retail competition (39592).

As previously reported, Sharyland Utilities has proposed expanding retail choice to the former Cap Rock areas effective January 1, 2014, which would expand customer choice to over 44,000 customers who currently buy electric supply from Sharyland (7/14).

The draft list of issues does not include, as sought by Pioneer Natural Resources USA, Inc., "[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."

The list of issues would not be exhaustive, however, and intervenors would still be free to raise issues during the case, unless the issue had been excluded under the preliminary order. The only issue excluded by the draft preliminary order would be specific delivery rates under the unbundled Sharyland tariffs (though the case shall address whether a rate case is required to be filed separately or whether interim unbundled tariffs are appropriate).

Among other things, the draft list of issues includes:

- Under this plan, will an adequate number of REPs provide retail service for robust competition? If not, what changes to the plan are necessary prior to approval pursuant to PURA § 39.102(d) and (e)?

- In what manner should default REP designation be performed?

- What criteria should be used to evaluate and select default REP(s)?

- Does the plan appropriately address the responsibilities of the default REP(s)?

- Should Sharyland be required to file a base-rate application to establish rates for the four divisions, or should the application propose system-wide rates for all of Sharyland's service areas, or should the application address both options?