Texas Approves Smart Meter Opt-Out, Assigns Obligations to REPs, TDUs

The Public Utility Commission of Texas adopted a final rule to allow customers to opt-out of having a provisioned advanced meter, which splits responsibility between the TDU and REP for various provisions under the rule.

The final rule was not substantively modified from a prior proposal for adoption.

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Texas Commissioners agreed that the transmission and distribution utilities (TDUs), not REPs, should collect the up-front, one-time fee for the opt-out.

REPs will be required to collect the monthly ongoing opt-out fee. Specifically, similar to other TDU charges in the market, the TDU will assess the fee to the REP, with the REP left to determine how to collect the fee from the customer.

The final rule does not set amounts for the ongoing monthly fee, or the initial upfront fee. Such fees are deferred to TDU-specific rate proceedings.

The PUCT did specify that the one-time upfront fee, collected by the TDU, will be differentiated based on which one of four, specific opt-out options were chosen (retention of existing analog meter, replacement of AMS with new analog meter, replacement of AMS with new, non-communicating digital meter, or use of AMS meter with communication disabled).

Customers electing one of the proposed opt-out options will remain responsible for paying the advanced metering system (AMS) surcharge, as the PUCT noted that PURA §39.109(h) provides that the AMS surcharge is nonbypassable.

Customers will be required to provide the TDU with a written acknowledgement to exercise their smart meter opt-out.

The final rule provides that, if necessary, the customer's REP shall work with the customer to either promptly transition the customer to a product that is compatible with non-AMS metering service or transfer the customer to another REP, subject to any applicable charges or fees required under the customer's existing contract.

If the customer is unresponsive, the REP may transition the customer without the customer's affirmative consent to a market-based, month-to-month product that is compatible with non-standard metering service.

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