Texas PUC Staff Find Sharyland's Proposal To Change TCRF Allocation Factors, "Reasonable"

Staff of the Public Utility Commission of Texas have concluded it would be "reasonable" to approve a change in the transmission cost recovery factor (TCRF) allocation factors at Sharyland Utilities, L.P.

As previously reported, Sharyland Utilities, L.P. has petitioned the Public Utility Commission of Texas, outside of a rate case, to revise its TCRF allocation factors to remove inter-class subsidies, which would have the impact of lowering residential bills.

Sharyland has said that the inter-class subsidies exist due to large load growth in the non-IDR primary service rate class. Additionally, a non-standard treatment for classes containing IDR-metered customers was necessary because Sharyland did not have IDR-metered customers during the test year of its last rate case, and thus there was no load data available to establish allocation factors for these groups in the standard manner as done for other utilities

Staff said that, "Due to Sharyland's small size in combination with the extraordinary and disproportionate recent load growth for Sharyland's rate classes, as well as the unique circumstances related to some non-standard rate treatments regarding Interval Data Recorder ('IDR') TCRF rates, it is reasonable to approve Sharyland's request to revise its TCRF rate class allocation factors."

For details on Sharyland's specific proposal, click here

"It would also be reasonable to approve an intermediate adjustment, reflecting partial movement towards Sharyland's proposed allocation factors, should the Commission determine that full movement to Sharyland's proposed factors is not appropriate," Staff said.

Staff further proposed an alternative for Commission consideration in the event that Sharyland's proposal is not adopted, as follows:

"Due to the non-standard IDR TCRF rate treatment, my alternative proposal is that the Commission order a modification to Sharyland's TCRF Rider to revise the current non-standard treatment to one involving a fixed ratio of IDR to non-IDR TCRF rates within each rate class that contains both IDR-metered and non-IDR- metered customers, the Secondary > 10 kW rate class and the Primary rate class ('IDR rate classes'). This alternative recommendation would represent a change to the status quo only for TCRF rates within the IDR rate classes; it would not change the status quo regarding the Residential, the Secondary < 10 kW, the Transmission, or the Lighting rate classes."

Staff said that it, "would be reasonable to both accept Sharyland's proposal to revise the TCRF allocation factors for each rate class, as well as to order a fixed ratio of IDR to non-IDR TCRF rates within the IDR rate classes. However, if the Commission adopts Sharyland's proposal then it is not vitally necessary to adopt my alternative recommendation, as Sharyland is expected to file a full rate case proceeding within a year that will enable these issues to be addressed at that time, and I think it is unlikely that Sharyland's current non-standard IDR TCRF rate treatment will present significant problems before that time."

Docket 44620