Texas TDU Notifies Retail Providers Of End Date For Rider Providing Refunds To REPs

AEP Texas has issued a market notice with updated expiration dates for Rider ITR - Income Tax Refund for certain customer classes.

Rider ITR currently provides each retail customer connected to the Company’s distribution system with certain tax benefits associated with the Tax Cut and Jobs Act of 2017 that reduces the maximum corporate income tax rate from 35 percent to 21 percent.

Under the Rider ITR, the REP on behalf of the Retail Customer is credited the Income Tax Refund based on a monthly credit factor (established in the tariff) for each rate class (ITR Factor) multiplied by the Retail Customer’s monthly base rate revenue during the effective period.

For the AEP Texas Central Division Rider ITR, the expiration date for the Residential, Secondary >10kW, and Lighting Service classes is June 9, 2021. For TCC, Rider ITR has already expired for the Secondary Service <= 10 kW, Primary Service and Transmission Service classes

For the AEP Texas North Division Rider ITR, the expiration date for the Residential, Secondary Service <=10kW, Secondary Service >10kW, and Primary Service classes is June 9, 2021. For TNC, Rider ITR has already expired for the Transmission Service and Lighting Service classes

AEP Texas also noted that the Capital Reconciliation Rider (CRR) has expired for all rate classes at this time.