Oncor Clarifies Provisions Of Proposed Mandate That REPs Pass-Through, To Customers, TDU Rate Savings From Sharyland Switch To Oncor Rates

In response to a request from the Texas PUC's Director of Docket Management, Oncor has clarified two issues related to language, proposed to be part of an order approving Oncor's acquisition of Sharyland Utilities, that is intended to ensure that Oncor's rates are passed through to customers served by Sharyland Utilities who will become Oncor customers after the Sharyland Transaction closes.

As previously reported, under a new finding of fact (#30) proposed by Oncor and supported by REPs, "Customers who are served by their REP of Record under a contract term that extends beyond the date of transition of their ESID from SU to Oncor shall receive a price reduction equivalent to the difference in the TDU charges from SU and Oncor."

The proposed language further states, "A REP may transfer a customer on a contract that is based on SU TDU charges to an equivalent contract based on Oncor TDU charges for the duration of the contract term so long as the other pricing terms are not higher than the other pricing terms in the original contract. Such a transfer will not be deemed a change requiring notice under 16 Tex. Admin. Code 25.475(d)(3)."

The Director of Docket Management informed parties that, "Clarification is needed on whether both references to 'other pricing terms' in the proposed finding are correct."

In response, Oncor clarified that, "Oncor states that both references to 'other pricing terms' are correct in the second to last sentence in the proposed finding of fact 30."

Oncor said that, for the sake of clarity, that sentence was intended to read as follows: "A REP may transfer a customer on a contract that is based on SU TDU charges to an equivalent contract based on Oncor TDU charges for the duration of the contract term so long as the other pricing terms are not higher than the other pricing terms in the original contract."

The proposed changes also would require that when Oncor reaches the approved regulatory capital structure, Oncor will cease accrual of the regulatory liability and will return the regulatory liability in the form of a bill credit over the period specified in Rider CSR – Capital Structure Refund and Rider WCSR – Wholesale Capital Structure Refund.

"These bill credits will be passed through to REPs, who will pass the credits on to those customers to whom the REP passed on the TDU rates approved in this proceeding," the proposed changes state (in proposed finding of fact 33)

The Director of Docket Management also requested that Oncor, "confirm that bill credits described in proposed finding of fact 33 will apply to all customers."

In response, Oncor clarified that, "With respect to the second question presented in the Order, Oncor confirms that the bill credits described in proposed finding of fact 33 will apply to all customers consistent with the proposed Rider CSR — Capital Structure Refund and Rider WCSR — Wholesale Capital Structure Refund, which are provided in Exhibit 2 to Oncor's Proposed Additions to Proposed Order."