CenterPoint-TDU Files Base Rate Case For Charges Applied To Retail Providers

CenterPoint Energy Houston Electric, LLC (CEHE) has filed with the Public Utility Commission of Texas an electric base rate case

Notable in the filing is that CEHE would reduce the combined flat monthly charge (customer charge and metering) applicable to residential customers from $5.47 to $4.43. Note that the flat amounts are now "per meter" rather than "per retail customer".

CEHE would also institute a new Rider UEDIT – Unprotected Excess Deferred Income Tax to refund to REPs the balance of unprotected excess deferred income taxes resulting from federal tax law changes.

A new Rate Case Expense (RCE) rider would be introduced. The TCRF and DCRF would be zero-ed out since costs would be reflected in base rates; such riders could be updated in the future.

The change in base rates and riders for each customer class is shown below.

 RESIDENTIAL Current Proposed Change Billing Unit Base Rates Customer $1.62 $2.48 $0.86 per meter Metering $3.85 $1.95 ($1.90) per meter Transmission $0.008439 $0.015080 $0.006641 per kWh Distribution $0.016489 $0.022680 $0.006191 per kWh Riders RCE N/A $0.000081 $0.000081 per kWh TCRF $0.004636 $0.000000 ($0.004636) per kWh DCRF $0.000655 $0.000000 ($0.000655) per kWh UEDIT N/A ($0.000592)($0.000592) per kWh SECONDARY =<10 Kva (Small) Current Proposed Change Billing Unit Base Rates Customer $1.61 $2.44 $0.83 per meter Metering $4.41 $2.11 ($2.30) per meter Transmission $0.004437 $0.009020 $0.004583 per kWh Distribution $0.012218 $0.015510 $0.003292 per kWh Rider RCE N/A $0.000064 $0.000064 per kWh TCRF $0.005007 $0.000000 ($0.005007) per kWh DCRF $0.000812 $0.000000 ($0.000812) per kWh UEDIT N/A ($0.000470)($0.000470) per kWh SECONDARY >10 Kva (Large) Current Proposed Change Billing Unit Base Rates Customer NON-IDR $2.26 $3.22 $0.96 per meter IDR $65.83 $48.28 ($17.55) per meter Metering NON-IDR $18.82 $6.90 ($11.92) per meter IDR $63.07 $79.91 $16.84 per meter Transmission NON-IDR $1.4318 $2.7140 $1.28 per NCP Kva IDR $2.2387 $4.0531 $1.81 per 4CP Kva Distribution $3.059429 $4.835920 $1.77649 per Billing Kva Riders RCE N/A $0.017407 $0.017407 per Billing Kva TCRF NON-IDR $1.154194 $0.000000 ($1.154194) per NCP Kva IDR $2.220816 $0.000000 ($2.220816) per 4CP Kva DCRF $0.107617 $0.000000 ($0.107617) per Billing Kva UEDIT N/A ($0.127867)($0.127867) per Billing Kva PRIMARY Current Proposed Change Billing Unit Base Rates Customer NON-IDR $3.58 $4.83 $1.25 per meter IDR $76.73 $61.26 ($15.47) per meter Metering NON-IDR $181.35 $285.55 $104.20 per meter IDR $138.40 $198.72 $60.32 per meter Transmission NON-IDR $1.7033 $2.7359 $1.03 per NCP Kva IDR $2.1546 $3.9405 $1.79 per 4CP Kva Distribution $2.002820 $2.524110 $0.52 per Billing Kva Riders RCE N/A $0.010037 $0.010037 per Billing Kva TCRF NON-IDR $1.289805 $0.000000 ($1.289805) per NCP Kva IDR $1.898137 $0.000000 ($1.898137) per 4CP Kva DCRF $0.048612 $0.000000 ($0.048612) per Billing Kva UEDIT N/A ($0.073733) ($0.073733) per Billing Kva TRANSMISSION Current Proposed Change Billing Unit Base Rates Customer $154.44 $222.94 $68.50 per meter Metering $1,449.82 $1,456.82 $7.00 per meter Transmission $2.1188 $4.7203 $2.60 per 4CP Kva Distribution $0.463296 $0.593150 $0.13 per 4CP Kva Riders RCE N/A $0.010567 $0.010567 per 4CP Kva TCRF $1.632335 $0.000000 ($1.632335) per 4CP Kva DCRF $0.001865 $0.000000 ($0.001865) per 4CP Kva UEDIT N/A ($0.077627)($0.077627) per 4CP Kva 

CEHE said that the impact of its rate application on a residential customer using 1,000 kilowatt-hours ('kWh') per month would be an increase of approximately $2.38 or 5.19% per month. A customer with a retail plan that charges 12.5 cents per kWh would see their rate go to 12.75 cents per kWh, or a 1.91% increase in their total bill, CEHE said

CEHE also filed certain changes to the amounts under RIDER CMC - Competitive Metering Credit. Aside from CMC and the changes listed above, there are no changes to CEHE's existing rider or schedule amounts, other than to remove riders that are no longer being charged (such as Rider AMS, Schedule TC)

CEHE also proposed increases and decreases to various Discretionary Services Charges.

There are generally no changes to the standard Discretionary Services Charges (DSC) for charges related to customers with a standard meter.

One notable DSC change is that for a Self Selected Switch for an AMS-M Meter (no remote disconnect/reconnect capability), a Competitive Retailer Switch On Date Certain would have no charge under the proposed tariff changes, versus the current $23.35 charge

In its application, CEHE is requesting authority to install voltage regulation battery technology, "when necessary and cost-effective," to provide voltage regulation associated with solar farms, wind generation, and other forms of distributed generation that are expected to be connected to the company’s facilities in the coming months and years.

"The request is a result of the Company’s recent experience with the energization of a 5 megawatt ('MW') solar farm. Following the energization of the facility in early 2019, 4 MW of pump load was regularly being affected by voltage issues stemming from the solar farm’s intermittency caused by cloud coverage," CEHE said. "Cloud cover was inducing voltage deviations from the solar farm that occurred too quickly for the Company's traditional voltage regulation equipment to address," a witness for CEHE said

"Accordingly, the Company requests (1) the authority to install voltage smoothing battery systems, when necessary and cost-effective, for voltage regulation purposes and (2) to include the cost of the systems in rate base as depreciated," CEHE said

A witness for CEHE said that the proposed battery systems are not generation assets

"Section 35.151 of the Public Utility Regulatory Act, 'Electric Energy Storage,' defines electric energy storage facilities that are to be used to sell energy or ancillary services as 'generation assets.' The battery systems at issue in this filing will not be used to sell energy or ancillary services. CenterPoint Houston will purchase any energy needed to charge the batteries, but will not sell energy expended by the batteries during dips in voltage that might result in outages for customers when the dip is followed by a corresponding spike," a witness for CEHE said

"The Company estimates that battery systems necessary to assist with voltage intermittency will generally cost approximately $4.2 million to install and $30,000 per year to operate and maintain," CEHE said

Docket 49421