Alleging "Windfall" to Retail Providers, Texas Cities Oppose CenterPoint TDU Plan to Refund Charges to REPs Without Requirement That REPs Pass-Through Credit to Customers

Alleging that a proposal from CenterPoint Energy Houston Electric, LLC would lead to a "windfall" to retail electric providers, the Gulf Coast Coalition of Cities has opposed the utility's as-filed proposal to refund $11 million to retail electric providers.

As first reported by EnergyChoiceMatters.com, the refund related to an over-recovery of transition charges under TC1. For residential customers, Rider TC Refund would be a credit of $0.001530 per kWh; click here to see additional refund amounts

The Gulf Coast Coalition of Cities said that the Commission should ensure that the refunds go to end-use customers.

"Approval of CenterPoint's proposal will result in an unfair windfall to REPs at the expense of the end-use customers who were over-charged by CenterPoint. While it is possible that REPs may ultimately flow a portion of the refunds to end-use customers who are entitled to the refunds, CenterPoint's proposal does not provide for a mechanism to ensure that result. In reality, CenterPoint's proposal does not result in a refund; rather, it is a direct transfer of wealth from ratepayers to REPs, using CenterPoint as a middleman," the Gulf Cities said.

"If the Commission approves CenterPoint's proposal to refund the over-collected amount to REPs, GCCC urges the Commission to only do so on the condition that REPs will directly pay or credit the refunded amount to their end-use customers," the Gulf Cities said, citing the mechanism used in the Oncor-Texas Energy Future Holdings merger proceeding.

An abatement has been granted in the case as parties seek resolution for an appropriate method of distributing the over-collection

Docket 44041