Texas Staff File to Set SBF Fee Charged to REPs at $0, Set New LIDA Discount

Consistent with recent legislation, Staff of the Public Utility Commission of Texas have filed a draft order to set the nonbypassable system benefit fund fee (charged to REPs) at 0¢/MWh for the period beginning September 1, 2013 and ending September 1, 2016.

BREAKING: Direct Energy to Acquire Texas
Retail Electric Provider

The System Benefit Fund fee is currently $0.65 per MWh

Low-income discounts will continue to be disbursed, through REPs, from previously collected funds.

Staff submitted a separate draft order to set the new percentage for the low-income electric rate reduction program for fiscal year 2014, requesting that the Commission set the discount percentage at 82%.

Staff noted that the current POLR rates are roughly $0.138/kWh, and that an 82% discount factor will result in a discount to low-income customers of about $0.113/kWh. Staff expects that the average customer will experience about a $170 reduction on the monthly bill.

Under the draft, retail electric providers will be required to begin providing discounts on eligible customers' bills starting on September 1, 2013, for the month of September, and then starting again on May 1, 2014, through the August 2014 bills, Staff said.

If funding for appropriation year 2015 is available, REPs will continue to provide the discounts at the proposed rates until at such time that a new order to set rates is presented to the Commission, Staff said.

Project 28073