AEP Texas Proposes Transitioning Rider Charged To Retail Providers To A Once Annual Charge, Instead Of Monthly

AEP Texas has filed at the Texas PUC to reduce and revise Rider NDC 6.1.1.5.1 - Nuclear Decommissioning Collections applicable to customers at the AEP Texas Central division

The PUC recently approved a reduction in the annual decommissioning funding required for 13.2% of NRG South Texas' 44.0% ownership interest in STP Units 1 and 2, for which AEP Central is the collecting utility. Also pending before the PUC is the suspension of 12.0% of CPS Energy's 40% ownership interest in STP Units 1 and 2, for which AEP Central is the collecting utility.

Because the reduction in the amount related to CPS has not yet been approved, AEP proposed two alternatives for an update to Rider NDC

Provided that the CPS revision is approved, AEP Texas is proposing to transition Rider NDC to a once annual charge, applied to REPs in June, versus the current monthly rider.

"Due to the extremely low NDC revenue requirement determined when the NRG South Texas and the CPS Energy revised funding levels are both included, AEP Texas proposes to replace the annual rate and monthly collection of NDC charges with a once-per-year collection in the billing month of June 2019," AEP said

AEP also seeks to implement the NRG and CPS changes at the same time to avoid multiple changes to the Rider NDC amounts in a short span of time.

Implementing both the NRG and CPS funding changes, as well as the move to a once-annual charge, would result in the following amounts for Rider NDC: AEP Central Proposed Rider NDC, Annual Charge (June 2019)

Residential             $0.000028 per kWh
Secondary ≤ 10 kW       $0.000035 per kWh
Secondary > 10 kW       $0.007879 per kW
Primary Service         $0.011525 per kW
Transmission            $0.004720 per kW
Lighting                $0.000035 per kWh

To the extent the CPS change is not approved, AEP would implement the following Rider NDC charges on a monthly basis, which reflect only the NRG change:

AEP Central
Proposed Rider NDC, Monthly Charge

Residential             $0.000011 per kWh
Secondary ≤ 10 kW       $0.000011 per kWh
Secondary > 10 kW       $0.002426 per kW
Primary Service         $0.003644 per kW
Transmission            $0.001557 per kW
Lighting                $0.000011 per kWh

For comparison, the current Rider NDC charges are:

AEP Central
Current Rider NDC, Monthly Charge

Residential             $0.000018 per kWh
Secondary ≤ 10 kW       $0.000017 per kWh
Secondary > 10 kW       $0.003884 per kW
Primary Service         $0.006326 per kW
Transmission            $0.002614 per kW
Lighting                $0.000017 per kWh

Note: for all per kW amounts, amounts are per Billing kW

Rider NDC does not apply at the AEP Texas North division