Texas PUC Staff Recommend Service Area Dispute Which Could Deprive 100 Customers of Retail Choice Be Set For Hearing

Staff of the Public Utility Commission of Texas have recommended that a service area dispute between Rio Grande Electric Cooperative (RGEC) and AEP Texas be referred to the State Office of Administrative Hearings

As first reported by RetailEnergyX.com, Rio Grande Electric Cooperative (RGEC) has sought an order from the Public Utility Commission of Texas requiring AEP Texas to cease serving over 100 residences in the Uvalde Estate Subdivision (outside of Uvalde, TX)

Rio Grande Electric Cooperative has not adopted customer choice. To the extent the customers currently served by AEP Texas's distribution system were moved to RGEC, they would lose their chosen retail electric provider

RGEC alleges that the subject residences in the Uvalde Estate Subdivision are located in an area that is singly certificated to RGEC

In a response to RGEC's filing for a cease and desist order, AEP Texas said that it is currently gathering information regarding the disputed subdivision area that AEP Texas believes was first in existence at or before the time of the certification of AEP Texas and RGEC by the Commission in 1976. AEP Texas said that it has grandfathered rights to serve the disputed area pursuant to PURA §37.052(a)(3), which provides that a certificate is not needed for an operation or service in progress on September 1, 1975

Staff recommended that the proceeding be referred to SOAH.

With respect to RGEC's petition for a cease and desist order, Staff noted the requirements for the Commission to issue such an order, and while not taking an explicit position, noted that, "RGEC does not appear to claim that AEP's conduct poses a threat to electric service, is hazardous, creates an immediate danger to the public safety, or that it is or could reasonably be expected to cause an immediate injury to a customer of electric services."

Staff noted that pursuant to PURA § 15.104 and 16 TAC § 25.54(b)(1)-(4), the Commission or the executive director (if authorized) may issue a cease and desist order if it is determined that the alleged conduct of a market participant meets one or more of the following conditions: (1) the conduct poses a threat to continuous and adequate electric service; (2) the conduct is hazardous; (3) the conduct creates an immediate danger to the public safety; or; (4) the conduct is causing or can be reasonably expected to cause an immediate injury to a customer of electric services and that the injury is incapable of being repaired or rectified by monetary compensation.

"In regards to the issues presented in RGEC's application and AEP's response, the facts are in dispute and an evidentiary record needs to be developed.. AEP states that it has grandfathered rights to serve the disputed area, and anticipates providing further information of such at a time consistent with the entry of a procedural schedule. Because there are material issues of fact and questions of law that require the development of an evidentiary record, Staff recommends that this proceeding be referred to the State Office of Administrative Hearings (SOAH)," Staff said

Docket 47186