Texas PUC Chair Directs Staff To Include Ancillary Service Pass-Throughs Under Retail Contracts In Review Of Implementing HB 16

During an open meeting work session, Texas PUC Chairman Peter Lake directed Commission Staff to include, as part of a rulemaking to implement HB 16 and its ban on wholesale indexed electricity plans for mass market customers, a review of ancillary service pass-throughs to commercial customers who are permitted to still be enrolled onto such contracts

As previously reported, under HB 16, a retail electric provider may not offer a wholesale indexed product to a residential or small commercial customer

Furthermore, under the new law, a REP may only enroll a large customer on a wholesale indexed product if the REP obtains an acknowledgment signed by the customer that the customer accepts the potential price risks associated with a wholesale indexed product.

See more details on HB 16 here

Staff noted that implementation of HB 16 will be addressed in a broadened Project 51830, a project initially opened after the winter event to address issues related to wholesale indexed plans but which will now be expanded to include other provisions of HB 16

Discussing the project, Lake said, "I would also ask that, in looking at the wholesale indexed products for commercial users, to certainly include the ancillary component that's gotten so much discussion today [as the PUC had discussed ancillary service costs passed through to commercial customers]. I know that snuck up on a lot of people, a lot of businesses and commercial users during the winter event; certainly want to keep that in mind as we work out the conditions under which those kinds of contracts can be offered."

Staff said that Project 51830 would also address additional new notice requirements that REPs must send to customers regarding fixed price product renewals. As noted in our prior story, HB 16 also requires REPs to serve customers not taking an affirmative action at renewal on a "default" renewal product (see more details on the default product in our prior story here).

Staff also proposes to revise the Your Rights as a Customer (YRAC) document that REPs must provide to customers, to add information regarding load shed and critical load status

Staff plans to have a proposal for publication regarding HB 16 ready for Commission consideration at the July 15 open meeting.