CenterPoint-TDU To Provide REPs With Company-Specific Refunds For TC Over-collections, Rather Than Return Amount Through Uniform Rider
January 28, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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CenterPoint Energy Houston Electric, LLC (CEHE) has filed at the Texas PUC an amendment to its plan to refund to retail electric providers Rider TC2 and Rider TC3 transition charge collection balances
Originally, CenterPoint Energy Houston Electric filed to refund the balances via a refund rider that would have applied a uniform refund amount (specific to each customer class) to all usage in the applicable billing period. As an example, the Rider TC2 & TC3 Refund credit for residential customers was proposed to be $0.000887 per kWh
However, CEHE said that in researching responses to Staff RFIs, it identified in the TC financing orders a prescribed methodology to apply to the distribution of refunds following repayment of the transition bonds
CEHE said that ordering paragraph 20 in the TC2 Financing Order states in pertinent part as follows: "Following repayment of the transition bonds... the servicer... shall distribute to REPs and other entities responsible for collection of transition charges from retail consumers, the final balance of the [applicable] subaccounts (except the capital subaccount)... remaining after all qualified costs have been paid. The amounts shall be distributed to each REP and other entity that paid Schedule TC2 transition charges during the last 12 months that Schedule TC2 transition charges were in effect. The amount paid to each REP and other entity shall be determined by multiplying the total amount available for distribution by a fraction, the numerator of which is the total Schedule TC2 transition charges paid by the REP and the other entity during the last 12 months Schedule TC2 charges were in effect and the denominator of which is the total Schedule TC2 charges paid by all REPs and other entities responsible for collection of transition charges from retail ratepayers during the last 12 months the Schedule TC2 transition charges were in effect."
In short, the order requires that refunds be paid to REPs in proportion to the amount of TCs paid by each REP
As such, CEHE proposes to instead distribute the entirety of the TC2 and TC3 collection balances, which is $42,772,173.69, to retail electric providers (REPs) through individual refunds to each of the REPs based on the TC2 and TC3 transition charges each REP paid to CEHE during the applicable 12-month period. The applicable 12-month period for calculating the REP allocation of the TC2 refund is July 11, 2018 to July 10, 2019. The applicable 12-month period for calculating the REP allocation of the TC3 refund is December 7, 2018 to December 6,2019.
CEHE has accordingly also withdrawn the proposed credit rider Rider TC2 & TC3 Refund given the change in refund mechanism
CEHE filed per-REP refund amounts under confidential seal
CEHE said, "CenterPoint Houston is also open to discussing alternative methods for disbursing the collection balances with interested parties in an effort to work towards addressing potential issues in order to reach successful resolution."