Texas Adopts Final Rule to Determine if Prepaid Rate Exceeds POLR Rate

The Public Utility Commission of Texas in Project 39969 has adopted as final several tests to determine whether prepaid electric service sold to residential customers is less than the price charged by the Provider of Last Resort, as is required by PURA §39.107(g).

The PUCT's new rule provides that the price for prepaid service to a residential customer, calculated as required by Subst. R. §25.475(g)(2)(A)-(E), shall be equal to or lower than at least one of the tests described below:

(A) The minimum POLR rate for the residential customer class at the 500 kilowatt-hour (kWh), 1,000 kWh, and 2,000 kWh usage levels as shown on the POLR Electricity Facts Label (EFL) posted on the commission's website for the applicable transmission and distribution utility (TDU) service territory. When an updated POLR EFL is posted on the commission's website, the retail electric provider (REP), at the REP's option, may continue to reference the prior POLR EFL to ensure compliance with this paragraph for prepaid service prices charged during the first 30 days, beginning the date that the updated POLR EFL is posted.

(B) The maximum POLR rate for the residential customer class calculated pursuant to Subst. R. §25.43(l) (relating to Provider of Last Resort).

(C) The average POLR rate for the residential customer class at the 500 kWh, 1,000 kWh, and 2,000 kWh usage levels using the formula described in Subst. R. §25.43(l) for the applicable TDU service territory, with the Large Service Provider energy charge calculated as the simple average of the Real-Time Settlement Point Prices (RTSPPs) over the prior month for the load zone located partially or wholly in the customer's TDU service territory that had the highest simple average price. For prepaid service prices charged by a REP up to and including the tenth business day of a month, the test may be met by using the average POLR rate calculation for the month preceding the prior month.

(D) For a fixed rate product, the REP must show that the prepaid service prices calculated under Subst. R. §25.475(g)(2)(A), (D)–(E) are equal to or lower than one of the tests, described in subparagraphs (A) and (C) above, at the time the REP makes the offer and provided that the customer accepts the offer within 30 days.