Texas County Disputing UFE, Line Loss Charges From Retail Provider From Winter Event; Withholds Payment -- EnergyChoiceMatters.com

Texas County Disputing UFE, Line Loss Charges From Retail Provider From Winter Event; Withholds Payment

March 29, 2021

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Copyright 2010-21 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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Williamson County, Texas, has notified Cavallo Energy Texas LLC, its electric provider, of a good faith dispute involving what it alleged were inflated invoice charges for Transmission and Distribution Losses and UFE Fees during February 2021 weather event, and has asked for reissued invoices

Williamson County is a member of P3 (Public Power Pool) for electricity. According to county materials, "They have advised the County to dispute recent electric bills from Calvallo [sic] that include an inflated line item charge for 'T&D Losses' - also known as 'Line Losses'. And to also dispute charges referred to as a UFE fee. These charges are a result of the February 2021 Winter Weather event. There is much discussion about easing the burden on consumers and potential legal, regulatory and legislative action is expected over the coming weeks and months. Until state officials have properly clarified the situation, P3 regards a delay in the payment of line losses as prudent."

EnergyChoiceMatters.com understands that the electricity product that Williamson County specifically procured through P3 called for UFE and line losses to be priced on a pass-through basis. A letter from Williamson County to Cavallo does not specifically identify the nature of the dispute (e.g. such as an alleged miscalculation), but rather simply alleges that the charges are "inflated."

It is expected P3 may be advising additional counties to take similar action with respect to invoices under the RFP, which was used for several counties pooled by P3

According to county materials, under Article 6(h) of its contract with Cavallo, if there is a good faith dispute regarding any invoice, the member will pay the undisputed amount of the invoice and notify the provider of the dispute within 21 days of receiving the invoice.

In a letter to Cavallo, Williamson County's judge wrote, "Williamson County has received the above-referenced invoices with inflated amounts from the usual monthly billing, which are apparently based on the recent February weather event and additional line item charges for transmission and distribution ('T&D') losses and UFE."

"We are disputing both the legal and factual basis for calculation of charges for transmission and distribution losses and UFE during the month of February 2021. Payment of those charges is being withheld at this time," the county judge wrote in the letter

"Thus, we request that you remove all charges for T&D Losses and UFE immediately and reissue the above invoices and any additional invoices associated with the Williamson County account," the county judge wrote in the letter

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