Settlement Reached To Set Amount Of New Charge Applicable To Retail Electric Providers To Recover Hurricane Restoration Costs At AEP Texas Central

AEP Texas Inc. (AEP Texas) and the Staff (Staff) of the Public Utility Commission of Texas (Commission) have reached a settlement concerning establishment of a financing order to securitize the distribution-related system restoration costs incurred by AEP Texas due to Hurricane Harvey and other weather-related events in AEP Texas Central Division’s service territory.

The settlement proposes, for AEP Central Division customers, new nonbypassable Rider SRC (System Restoration Charge), as well as new Rider ADFIT - ADFIT Credit, the latter of which would provide customers the accumulated deferred federal income tax (ADFIT) benefits associated with Hurricane Harvey and other system restoration costs.

The Alliance for Retail Markets does not oppose the stipulation

The settlement's proposed amounts for the charge and credit are below (these are unchanged from AEP Texas' original application):

AEP Texas Central
Rider SRC — System Restoration Charge

Residential           $0.001472 per kWh
Secondary ≤ 10 kW     $0.001842 per kWh
Secondary > 10 kW     $0.307337 per kW
Primary Service       $0.246113 per kW
Lighting              $0.008522 per kWh

* per kW amounts are per Distribution Billing kW





AEP Texas Central
Rider ADFIT — ADFIT Credit

Residential          ($0.000144) per kWh
Secondary ≤ 10 kW    ($0.000180) per kWh
Secondary > 10 kW    ($0.030098) per kW
Primary Service      ($0.024103) per kW
Lighting             ($0.000835) per kWh

* per kW amounts are per Distribution Billing kW

The settlement would also establish billing and collection standards for REPs for Rider SRC that are the same as those adopted in Docket Nos. 32475 and 39931 and currently applied by AEP Texas in its capacity as servicer under the transition bonds issued pursuant to the financing orders in those dockets (such provisions mirror the requirements under 16 TAC § 25.108 related to transition costs)

Docket 49308