Texas to Examine Average Pricing Disclosure for Time-Based Rates, Opens Docket

The Public Utility Commission of Texas will examine the issue of the average pricing disclosure required of retail electric providers offering time-based rates.

Specifically, the PUCT assigned Project 41607 for a, "Project to Study Time of Use and other Retail Electric Products that Require Estimates in the Calculation of Average Price."

For mass market customers, the Texas Substantive Rules require that the REPs (depending on product type) provide on the Electricity Facts Label either a "total average price for electric service reflecting all recurring charges" (fixed and variable products), or "sample prices for electric service reflecting all recurring charges" (index products). For residential customers, the total average price must be provided at 1,000 kWh monthly usage (as well as other usage levels).

For products with rates that vary based on time of day, or day of the week, in order to arrive at a single, total average rate, the REP must estimate how much power is used in each time period (or day).

Several REPs explain on their Electricity Facts Label how the REP determines the average all-in rate, based on assigning consumption to various time periods.

For example, Direct Energy's Free Saturday product indicates on the EFL that the average rate, "assumes 1/7th (14.3%) of usage on Saturdays."

The EFL for Reliant's Free Weekends product indicates that the average price calculation, "is based on consumption profile over 12 months of 32% of consumption on weekends as defined [in the EFL]."