Texas PUC Approves Settlement Which Eliminates Inadvertent Gain Charge

The Texas PUC approved without modification a settlement in Oncor's electric rate case which, among other things, eliminates the inadvertent gain charges currently charged to retail electric providers

As previously reported, Oncor in its initially filed rate proposal would have slashed the Inadvertent Gain Charge from the current $35.65 to $4.00.

The adopted settlement reduces the Inadvertent Gain Charge to $0 under all types of Discretionary Service Charges

The adopted settlement sets other Discretionary Service Charges (Move-in, DNP, reconnection, etc) as originally proposed by Oncor in the TDU's initial filing (see these DSCs in ECM's prior story here)

The approved settlement sets Oncor's residential and Secondary <= 10 kW distribution rates as follows (current and initial proposal also provided):

Oncor Distribution Rates

                        Initial    Adopted
               Current   Filing   Settlement
Residential
 Customer Charge
   per month     $1.43    $1.48    $1.48
 Meter Charge
   per month     $2.80    $2.58    $2.58
 Distribution System Charge 
   per kWh   $0.025344  $0.038294  $0.036043

Secondary <= 10 kW
 Customer Charge
   per month    $2.26    $2.34    $2.34
 Meter Charge
   per month    $4.61    $4.36    $4.36
 Distribution System Charge 
   per kWh  $0.021251  $0.032253  $0.031236

The settlement provides that, in Oncor’s next base-rate case, Oncor will propose two alternatives for the Secondary >10 kW rate class rate design for the PUC to choose between.

One alternative will be based on the existing rate design.

The other alternative will eliminate the demand ratchet and annual load factor tiers methodology, with associated adjustment of the billing determinants.

All parties will be free to take any position regarding which rate design is appropriate, including any targeted relief for specific facility types.

Docket 58306