New Texas PUC Chair Has Questions Regarding PUC's Ability To Require REPs To Pass-Through Oncor TDU Rate Savings To Transitioned Sharyland Customers

In a memo concerning a stipulation and proposed order governing Oncor's proposed acquisition of Sharyland Utilities, DeAnn Walker, the new chair of the Public Utility Commission of Texas, stated that she had "questions" concerning the PUCT's ability to issue a requirement that retail electric providers pass-through to their retail customers any savings from the movement of Sharyland customers to the Oncor tariff

As previously reported, a proposed order from Oncor, supported by REP parties, would include additional language to ensure that when a Sharyland Utilities (SU) customer becomes an Oncor customer as a result of the Sharyland Transaction, that customer will receive the benefit of Oncor's lower rates even if that customer has an existing bundled rate plan that includes the higher SU rates

The proposed language specifically states, "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."

In a memo in advance of today's open meeting, Walker noted that, "Oncor also proposes changes related to ensure 'that Oncor's rates are passed through to customers served by Sharyland Utilities, L.P. ('SU') who will become Oncor customers after the Sharyland Transaction closes.'"

"Due to existing questions regarding the Commission's ability to issue such requirements as proposed by Oncor, I request that representatives for the Alliance for Retail Markets and the Texas Energy Association of Marketers be present to address whether the Retail Electric Providers will agree to pass along the savings to the ratepayers," Walker wrote