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Oncor Stipulation Would Include Load Factor Grouping to Address Demand Ratchets
May 12, 2011
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An unopposed non-unanimous stipulation in Oncor's rate case would implement its proposal to modify how demand charges are applied to customers of REPs in the Secondary Service Greater than 10 kW class (38929, see 1/10).
The stipulation would adopt, although at lower individual charges than originally proposed, Oncor's proposal to change how the demand ratchet is applied to customers with loads that are greater than 20 kW and have an annual load factor of less than 25%. Oncor said that the proposal is intended to reflect cost causation principles while at the same time removing the demand ratchet provision for all low load factor customers.
Under the stipulation, the Distribution System Charge for all such customers would be based on their actual monthly demand and the load factor group ("LF Group") associated with their historical load factor for the most recent calendar year.
The settlement would establish four distinct LF Groups as follows:
1) Annual load factors less than 10% (the 0-10 Group);
2) Annual load factors of 11% to 15% (the 11-15 Group);
3) Annual load factors of 16% to 20% (the 16-20 Group); and
4) Annual load factors of 21% to 25% (the 21-25 Group)
Each group would be charged a unique Distribution System Charge per Distribution Billing kW.
Additionally, the stipulation would eliminate the Transmission System Charge applicable to delivery service, and instead recover all transmission expense through the Transmission Cost Recovery Factor. For the TCRF, Oncor will use the 2010 unadjusted 4CP figures instead of the 2009 adjusted 4CP figures.
The stipulation would also reduce several discretionary service charges (new rates in parenthesis), including Standard Move-Ins for self-contained meters ($3.20 for existing meters, $11.35 for new meters), Priority Move-Ins for self-contained meters ($10.35); Disconnects for Non-Pay at the meter (Standard, $2.70); several Reconnect charges (Standard, $3.10); and Out-Of-Cycle Meter Reads for Self-Selected Switches ($1.90).
The stipulation provides that interim rates for distribution service shall be implemented July 1, 2011 if the PUCT does not adopt permanent rates by that time. In no event shall the permanent rates take effect sooner than 30 days after the signing of a Commission order approving the stipulation and tariffs.
Oncor agrees under the settlement to not file a general base rate case before July 1, 2013; provided that Oncor has no obligation to file a rate case on that or any other date, and Oncor is entitled to file interim rate updates and adjust rates as allowed by Texas law and Commission rules, including, but not limited to, interim TCOS updates, TCRF updates, Energy Efficiency Cost Recovery Factor updates, AMS Surcharge filings, and other investment or cost updates that may exist now or in the future as a result of legislative or Commission action. Nothing in the stipulation limits the ability of a regulatory authority to initiate an Oncor rate case at any time.
The stipulation was signed by, among others, Oncor, PUCT Staff, the Office of Public Utility Counsel, Oncor Cities, and Texas Industrial Energy Consumers. None of the intervening REPs in the rate case signed the stipulation, but they do no oppose it.
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