Texas PUC Rejects Petition To Initiate (Or Resume) Retail Electric Choice Pilot In Non-ERCOT Service Area

The Public Utility Commission of Texas has rejected a petition from East Texas Salt Water Disposal Company (ETSWD) for a declaratory order and request for the opening of a pilot retail electric choice implementation project at Southwestern Electric Power Company (SWEPCO)

East Texas Salt Water Disposal Company's petition had been exclusively first reported by EnergyChoiceMatters.com last year

As more fully described in our prior story (see extensive details here), East Texas Salt Water Disposal Company generally argued that a SWEPCO pilot unbundled service tariff adopted shortly after deregulation legislation was adopted remains in effect, and was not altered by a 2009 law pausing the transition to competition at SWEPCO (or any subsequent rate case). ETSWD alternatively asked the PUC to initiate a choice pilot at SWEPCO.

PUC Staff had previously said that active participation by customers in the dormant SWEPCO pilot program is only appropriate under statute if the Commission finds that the pilot would constitute the first stage of a transition to competition at SWEPCO, or that other related statutory requirements have already been met (see story here)

During today's open meeting, PUC Chairman Peter Lake said that it was pretty clear that the prior pilot had been cancelled

Furthermore, Lake said that while the Commission has certain authority to initiate a new pilot, a declaratory order is not the appropriate mechanism to address the question of choice at SWEPCO. Lake also said that now is not the appropriate time to consider the issue, given various other more pressing policies that the legislature has now tasked the PUC with implementing as a result of the recent legislative session

Commissioner Will McAdams agreed that the issue raised by East Texas Salt Water Disposal Company is not what the declaratory order process was designed for

Docket 51257