Texas Industrials Petition PUCT to Adopt Competitive Generation Service Tariff at Entergy

Texas Industrial Energy Consumers (TIEC) petitioned the Public Utility Commission of Texas to adopt a Competitive Generation Service (CGS) program tariff at Entergy Texas after negotiations between TIEC and Entergy failed to reach a consensus program tariff.

Several stipulations and Commission orders have addressed much of the CGS program's design, including customer and supplier eligibility restrictions (see prior story for discussion of CGS program particulars). The parties have agreed to a "modest" CGS program under which participation is capped at 115 MW, TIEC said.

However, several issues remain outstanding.

Notably, Entergy Texas has proposed a provision in the CGS tariffs that would allow the Entergy Operating Committee to reject any CGS supplier without seeking and receiving PUCT approval.

TIEC opposes giving Entergy Texas or the Entergy Operating Committee the right to reject any or all CGS contracts.

Additionally, when a CGS supplier fails to supply electricity, the CGS customer will generally purchase backup power from Entergy Texas under the Unserved Energy Rate, unless the CGS customer reduces its load.

Entergy Texas has proposed language in the Unserved Energy Rate that would require a CGS customer to pay energy charges (including fuel) even when the CGS customer reduces its load when its CGS supply is unavailable. CGS customers should only have to pay energy charges for power they actually use, TIEC said.

Entergy Texas has proposed provisions that would penalize a CGS customer for returning to firm service if, for example, a CGS supplier defaults on its contract. "While TIEC believes that ETI is entitled to any damages resulting from a breach of contract, ETI's proposed version is punitive, not compensatory," TIEC said.

Docket: 38951