Settlement Would Set Amount for New Charges Applicable to Texas Retail Providers

CenterPoint Energy Houston Electric has filed for approval of interim rates for its proposed new Distribution Cost Recovery Factor (DCRF), which it said are identical to the rates agreed to in a stipulation among the parties in the case (with such stipulation not yet formally filed).

The DCRF is to be a new rider charged to retail electric providers for certain distribution costs not reflected in base rates.

In what it said was an unopposed motion, CenterPoint Energy Houston Electric filed for approval of the interim DCRF charges effective September 1, such that the rates, which are identical to the settlement DCRF rates, may take effect on September 1 with advance notice to retail providers, regardless of when the final tariff may become effective based on consideration and approval of the formal stipulation. The interim rates would be subject to refund or surcharge to the extent the settlement is not adopted.

The interim DCRF charges applicable to REPs beginning September 1, which are to be equal to the DCRF charges under the stipulation, would be as follows:

Residential Service            $0.000241 per kWh
Secondary Service ≤ 10 kVA     $0.000319 per kWh
Secondary Service > 10 kVA     $0.040087 per Billing kVA
Primary Service                $0.017653 per Billing kVA
Transmission Service           $0.000787 per 4CP kVA
Lighting Services              $0.003375 per kWh

To compare these charges to original proposals from CenterPoint Energy Houston Electric and Public Utility Commission Staff, click here; the interim/stipulated rates generally fall between the TDU and Staff proposals.

CenterPoint Energy Houston Electric said that a settlement in principle regarding the DCRF has been reached among CenterPoint Houston, the Staff of the Public Utility Commission of Texas (Staff); Office of Public Utility Counsel (OPC); City of Houston (COH); Houston Coalition of Cities (HCOC); Texas Coast Utilities Coalition (TCUC); Gulf Coast Coalition of Cities (GCCC); and State of Texas Agencies and Institutions of Higher Education (State Agencies). Under the terms of the Settlement Agreement, CenterPoint Energy Houston Electric's DCRF revenue requirement will be set at $13.0 million.

The interim rates are proposed in order to afford the opportunity to finalize the stipulation and supporting documentation. Substantive Rule 25.243 contemplates that rates approved in the DCRF proceeding will be effective September 1, 2015. In addition, PURA § 36.210(b) requires transmission and distribution utilities to notify retail electric providers of changes in rates within 45 days after filing a compliance tariff reflecting those rates. CenterPoint Energy Houston Electric said that allowing interim relief in this proceeding will ensure those deadlines are met.

Docket 44572