Texas TDU Files For Approval Of New Wholesale Distribution Line Service Rate To Serve New Storage Customer

Sharyland Utilities, L.P. filed with the Public Utility Commission of Texas a new wholesale tariffed rate schedule, Wholesale Distribution Line Service, to serve a new energy storage project

"Sharyland currently has only one customer that would be served under this new rate schedule — a new wholesale distribution storage load," Sharyland said in its filing

The proposed rates noted below were developed on a direct assignment of the costs of the facilities (poles, structures, other fixtures, etc.) from which the customer would take service and related expenses (operations and maintenance, administrative and general, etc.). Although Sharyland proposes to adopt the rates developed on this approach, based on discussions with Commission Staff, Sharyland said that it will also develop rates based on system average cost and will amend this filing within ninety days to include information on this alternative approach.

Sharyland requested interim rate relief to allow the rates to go into effect as soon as possible (subject to refund or surcharge based on the fate ultimately established by the Commission). The expedited effective date for interim rate relief is to accommodate the customer's anticipated in-service date, which could be as early as March 17, 2017. Sharyland said that it was authorized to state that the customer under the proposed rate schedule agrees to interim rate relief with a requested effective date as early as possible.

Because service to a wholesale distribution storage load customer has not previously been provided by Sharyland, Sharyland requested that the Commission not take final action on the proposed rate until Sharyland has provided service to the customer for 90 days. At that time, Sharyland would have actual data regarding the usage of the service and would be able to develop a more accurate rate based on the customer's actual usage. Sharyland would then file a revised rate schedule with updated rates for consideration by the Commission, including additional information necessary to establish rates based on system average cost, as described above. Sharyland would specify the effective date for the updated rate in that filing. Once the Commission approves a rate, the interim rate would be subject to refund or surcharge based on the rate ultimately approved. Sharyland said that it was authorized to state that the customer under the proposed rate schedule agrees with this approach to getting the Wholesale Distribution Line Service rate

The interim Wholesale Distribution Line Service would include the following charges:

• Customer Charge: $11.14 Per Point of Interconnection

• Metering Charge: $17.71 Per Point of Interconnection

• Distribution Line Charge: $7.04 Per Billing kW