Settlement Would Increase Rider Paid By Retail Providers At AEP Texas By 40-50%

An unopposed settlement among AEP Texas, Texas PUC Staff, and other parties would establish new Distribution Cost Recovery Factors (DCRFs) at AEP Texas' Central and North divisions, effective September 1, 2017

While the stipulated rates are marginally lower than AEP Texas' originally proposed rates, under the settlement, the amounts of the DCRFs applicable to residential and Secondary ≤ 10 kW customers would still increase 40-50% from the current DCRFs, depending on class and service area

Settling parties also asked that, to the extent needed, the stipulation rates be adopted on an interim basis effective September 1, 2017, to the extent final approval is not granted by such time

The new AEP Texas Central DCRFs under the settlement would be:

AEP Texas Central - Stipulation DCRF, Effective 9/1/17

Residential             $0.003311 per kWh
Secondary ≤ 10 kW       $0.008890 per kWh
Secondary > 10 kW 10 kW
  IDR                   $0.709806 per kW
  Non IDR               $0.709806 per kW
Primary Service
  IDR                   $0.546808 per kW
  Non IDR               $0.546808 per kW
Transmission            $0.010705 per kW
Lighting                $0.008890 per kWh

For comparison, AEP Texas Central's current DCRFs are:

AEP Texas Central - Current DCRF
Residential             $0.002409 per kWh
Secondary ≤ 10 kW       $0.006566 per kWh
Secondary > 10 kW 10 kW
  IDR                   $0.481447 per kW
  Non IDR               $0.481447 per kW
Primary Service
  IDR                   $0.423435 per kW
  Non IDR               $0.423435 per kW
Transmission            $0.007931 per kW
Lighting                $0.006566 per kWh

The new AEP Texas North DCRFs under the settlement are below. For the 2017-18 rates, the revenue requirement reflects a refund of an overcollection of prior DCRF rates. Effective 9/1/18, the revenue requirement would remove this refund from its calculation, resulting in updated DCRF rates (provided that AEP Texas North does not seek to update the rate prior to such change taking effect).

AEP Texas North - Stipulation DCRF, Effective 9/1/17

Residential             $0.004275 per kWh
Secondary ≤ 10 kW       $0.011636 per kWh
Secondary > 10 kW 10 kW
  IDR                   $0.760182 per kW
  Non IDR               $0.760182 per kW
Primary Service
  IDR                   $0.321971 per kW
  Non IDR               $0.321971 per kW
Transmission            $0.027635 per kW
Lighting                $0.011636 per kWh


AEP Texas North - Stipulation DCRF, Effective 9/1/18
(if not updated by such date)

Residential             $0.004355 per kWh
Secondary ≤ 10 kW       $0.011854 per kWh
Secondary > 10 kW 10 kW
  IDR                   $0.774419 per kW
  Non IDR               $0.774419 per kW
Primary Service
  IDR                   $0.328001 per kW
  Non IDR               $0.328001 per kW
Transmission            $0.028152 per kW
Lighting                $0.011854 per kWh

For comparison, AEP Texas North's current DCRFs are:

AEP Texas North - Current DCRF

Residential             $0.002903 per kWh
Secondary ≤ 10 kW       $0.007701 per kWh
Secondary > 10 kW 10 kW
  IDR                   $0.496302 per kW
  Non IDR               $0.496302 per kW
Primary Service
  IDR                   $0.223067 per kW
  Non IDR               $0.223067 per kW
Transmission            $0.019749 per kW
Lighting                $0.007701 per kWh

For AEP Texas' originally proposed new DCRFs that have been replaced by the stipulation rates, see our original story on AEP's filing