Oncor Eliminating Use of NCP kW Demands for February 15-19, Issuing Cancels/Rebills
March 1, 2021 Email This Story Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • firstname.lastname@example.org
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Oncor said in a market notice that, for customers who are billed using kW demand, Oncor will disregard the customer's NCP kW demand for the period of February 15th through February 19th for Billing Purposes, as further described below
Oncor has already begun the cancel-rebill process. Oncor said in a Feb. 28 market notice that, at such time, it does not know how long it will take to complete all the cancel-rebills, but it will send another market notice once this is known
Oncor noted in the market notice that, "A large number of non-residential ESI IDs are billed by Oncor using monthly non-coincidental peak kW demands (“NCP Demands”). Many customers have set unprecedented high actual NCP Demands as a result of the recent winter storm event and rotating and controlled outages. After being without power for many hours at extremely cold temperatures, when the power was restored, customer equipment that normally cycles on and off may have come on all at once, typically to heat the facilities. As a result, customers may have experienced very high Oncor TDU charges this month. Additionally, Oncor's tariff incorporates an 80% demand ratchet for certain rate classes, whereby the billed demand for any given month is no less than 80% of the highest NCP Demand incurred during the prior 11 months. Thus, not only will these unprecedented high NCP Demands cause bills to increase for the current month, but they will likely cause higher bills for some or many of these customers for the following 11 months."
Oncor said in the market notice that, "In order to protect these customers from the cost impacts of these unusually high NCP Demands, and so as to ensure Oncor does not collect the unanticipated additional revenues that the high NCP Demand billings would otherwise provide, Oncor intends to effectively disregard, or not consider, the demand readings that occurred during the February 15th through February 19th period (“Storm Period”) from any billing or rate impacts."
Oncor is taking the following actions:
• Beginning February 26th, Oncor has begun to manually review and remove any affected demand readings from consideration for billing ESI IDs which have initiated its high demand/high billing exception process. These customers will be the ones whose NCP Demands represent the most extreme increase from prior demands. If these bills have already been sent to REPs, Oncor will cancel-rebill them utilizing the NCP Demand that occurred outside the Storm Period.
• For ESI IDs that do not initiate the exception process, and for those bills that have already been processed and sent to the REPs, Oncor will, upon making the necessary modifications to its meter reading/billing systems, begin to cancel-rebill those bills for ESI IDs that billed based upon NCP Demands which occurred during the Storm Period. Oncor will rebill these utilizing only the NCP Demand that occurred outside the Storm Period.
• Oncor will disregard the demand readings that occurred during the Storm Period from any future demand ratchet calculations.
• To the extent a customer on the Secondary Less Than or Equal to 10 kW rate would be moved to the Secondary Greater Than 10 kW rate due to an NCP Demand of greater than 10 kW that occurred during the Storm Period, the customer will remain on their current Secondary Less Than or Equal to 10 kW rate.
• The elimination of the use of NCP Demands established during the Storm Period will only affect Oncor's charges and will not have an impact on the customer's kWh consumption or data sent to ERCOT for settlement purposes or sent to Smart Meter Texas.