Parties Reach Settlement To Significantly Reduce AEP Texas Rider DCRF Charged To REPs

Various parties have filed a settlement with the Public Utility Commission of Texas to update the Distribution Cost Recovery Factors (Rider DCRF) for AEP Texas's Central and North divisions, effective September 1, 2018.

Settling parties included AEP Texas, Public Utility Commission Staff (Staff), the Alliance for Retail Markets (ARM) and the Cities Served by AEP Texas (Cities). The Office of Public Utility Counsel (OPUC) and Texas Industrial Energy Consumers (TIEC) do not oppose the settlement

The proposed new amounts of Rider DCRF under the settlement are significantly lower than the amounts of the current rider, as well as changes that AEP Texas had originally proposed to implement

For example, the AEP Texas Central residential Rider DCRF would decrease by over 1 mill per kWh under the settlement from the current rate

The AEP Texas North residential Rider DCRF would decrease by about half a mill per kWh under the settlement from the current rate. However, this is a significant reduction versus the originally proposed increase of about 1 mill per kWh that AEP Texas had originally sought for this class

The settlement DCRF rates, which remain subject to PUCT approval, are below:

AEP Texas Central - Settlement DCRF, Effective 9/1/18

Residential             $0.002158 per kWh
Secondary ≤ 10 kW       $0.005796 per kWh
Secondary > 10 kW 
  IDR                   $0.459440 per kW
  Non IDR               $0.459440 per kW
Primary Service
  IDR                   $0.364619 per kW
  Non IDR               $0.364619 per kW
Transmission            $0.006749 per kW
Lighting                $0.005796 per kWh




AEP Texas North  - Settlement DCRF, Effective 9/1/18

Residential             $0.003854 per kWh
Secondary ≤ 10 kW       $0.010585 per kWh
Secondary > 10 kW 
  IDR                   $0.679589 per kW
  Non IDR               $0.679589 per kW
Primary Service
  IDR                   $0.305188 per kW
  Non IDR               $0.305188 per kW
Transmission            $0.024541 per kW
Lighting                $0.010585 per kWh

For comparison, the originally proposed and current DCRFs are below.

AEP Texas Central's originally proposed and current DCRFs are below:

AEP Texas Central
Originally Proposed DCRF, Effective 9/1/18

Residential             $0.003289 per kWh
Secondary ≤ 10 kW       $0.008832 per kWh
Secondary > 10 kW 
  IDR                   $0.700069 per kW
  Non IDR               $0.700069 per kW
Primary Service
  IDR                   $0.555586 per kW
  Non IDR               $0.555586 per kW
Transmission            $0.010284 per kW
Lighting                $0.008832 per kWh


AEP Texas Central
Current DCRFs

Residential             $0.003311 per kWh
Secondary ≤ 10 kW       $0.008890 per kWh
Secondary > 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

AEP Texas North's originally proposed and current DCRFs are below:

AEP Texas North
Originally Proposed DCRF, Effective 9/1/18

Residential             $0.005322 per kWh
Secondary ≤ 10 kW       $0.014616 per kWh
Secondary > 10 kW 
  IDR                   $0.938390 per kW
  Non IDR               $0.938390 per kW
Primary Service
  IDR                   $0.421410 per kW
  Non IDR               $0.421410 per kW
Transmission            $0.033887 per kW
Lighting                $0.014616 per kWh


AEP Texas North
Current DCRFs

Residential             $0.004275 per kWh
Secondary ≤ 10 kW       $0.011636 per kWh
Secondary > 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

Note: all per kW amounts are per Distribution Billing kW