Texas REPs Oppose Interim TDU Rate Change On 3 Days' Notice; Incorporation By REPs Into EFLs, Etc. On Short Notice Called "Infeasible" -- EnergyChoiceMatters.com

Texas REPs Oppose Interim TDU Rate Change On 3 Days' Notice; Incorporation By REPs Into EFLs, Etc. On Short Notice Called "Infeasible"

August 23, 2023

Email This Story
Copyright 2010-23 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

The following story is brought free of charge to readers by VertexOne, the exclusive EDI provider of EnergyChoiceMatters.com

The Texas Energy Association for Marketers and Alliance for Retail Markets (collectively, REP Coalition) opposed an application by CenterPoint Energy Houston Electric (CEHE) to implement, on an interim basis, new charges applicable to REPs under Rider Temporary Emergency Electric Energy Facilities (TEEEF)

CEHE applied on August 2 for interim rates to be effective September 1, 2023. An August 28 hearing is to address the interim rate change request

The REP Coalition said, "If interim rates are approved [at the Aug. 28 hearing] with a September 1, 2023 effective date, this will leave REPs with just three days to effectuate the updates necessary to provide accurate pricing to prospective customers in CenterPoint’s service area as well as implement this new charge for existing customers."

"With respect to the impact of CenterPoint’s request on end-use customers and the members of the REP Coalition who serve those customers, it is infeasible for REPs to incorporate CenterPoint’s requested interim rate increase into Commission–required Electricity Facts Labels (EFLs) by September 1, 2023. The pricing and offers that will be available to end-use customers on September 1, 2023 have already been set to effectuate the increase in other CenterPoint rates that were approved in July with an effective date of September 1, 2023," the REP Coalition said

"Regarding the public interest, it is not reasonable to so severely truncate the timeframe in which an interim rate must be implemented as both REPs and the customers they serve will be negatively impacted. This is especially true in this proceeding since (1) there is no statutory deadline under PURA § 39.918 by which the Public Utility Commission of Texas (Commission) must approve the update to CenterPoint’s Rider TEEEF; and (2) CenterPoint could have filed its motion for interim rates in time to both have a hearing and still provide REPs with at least 45 days notice of any approved interim rate. Forcing through a significant rate increase under the guise of “interim” rates in the midst of the summer when many customers are experiencing higher electric bills is not in the public interest. Careful consideration and deliberation of the reasonableness of CenterPoint’s requested rate increase should be conducted before customers are required to bear the burden of those costs," the REP Coalition said

"In regard to the effective date, CenterPoint could have avoided the burden that will be borne by REPs altogether had it not waited until the last possible moment allowed under 16 TAC § 22.125 to request an interim rate," the REP Coalition said

"Even if there is a determination that CenterPoint’s requested interim rate satisfies the criteria under 16 TAC § 22.125(c), the proposed September 1, 2023 effective date does not. More specifically, the three business days separating the August 28, 2023 hearing on CenterPoint’s request and September 1, 2023 provides an untenably short and impractical window during which REPs would be expected to update the Commission-mandated EFL, which is required to provide up-to-date pricing information that includes TDU charges," the REP Coalition said

The REP Coalition noted that, "Because TDU charges qualify as recurring charges, the total average price [in a REP's EFL] must be calculated to include the TDU charges that are in effect on the date the product is offered to potential customers. If an interim rate is approved to be effective September 1, 2023, the Commission’s expectation is that all prices offered after that date include the new interim charges. Consequently, a REP that is marketing a product on September 1, 2023 using an EFL for that product that has not been updated to disclose a total average price that is calculated using all CenterPoint charges, including the interim rate, would face compliance and customer complaint risk driven entirely by CenterPoint’s unreasonable interim rate request. To enable timely compliance, the Commission’s approval of TDU rates has historically allowed sufficient time for REPs to process the rate changes in their systems and to update all applicable EFLs."

"Given this regulatory obligation on REPs, a September 1st effective date for CenterPoint’s interim rates will not provide a sufficient window for REPs to timely adjust the total average price in the EFL and swap out the prior version of the EFL with outdated pricing on all marketing platforms. Accordingly, granting CenterPoint’s request for a September 1st effective date could have the unintended consequence of causing customer confusion over pricing thus negatively impacting a REP’s ability to compete for customers in the retail market. Such an unreasonable outcome is not warranted given the fact that CenterPoint could have made its request for interim rates at any time in the months after it filed is application on April 5, 2023. Thus, the public interest dictates that if any interim rate is set in this proceeding, it should not be granted with the September 1st effective date proposed by CenterPoint, and if granted, provide an effective date that allows REPs to appropriately adjust customer offers and prices to include the new charges," the REP Coalition said

"[I]f the administrative law judge (ALJ) is inclined to approve CenterPoint’s interim rate, the ALJ can exercise discretion and set an effective date that is at least 45 days from the date of the order approving the interim rate," the REP Coalition said

The REP Coalition also noted that the interim rates proposed by CEHE would double the Rider Temporary Emergency Electric Energy Facilities (TEEEF) rate for residential customers, which the REPs said results in, "imposing increased costs this summer when electricity consumption (and consequently electric bills) tend to be higher, and more than quadruple its existing TEEEF annual revenue requirement."

As previously reported, CEHE has proposed certain TEEEF rate mitigation measures for low-income customers

See background here on the proposed rate relief measures and associated obligations placed on REPs to implement them

The REP Coalition reiterated concerns about costs imposed on REPs to administer any such rate relief, rather than CEHE itself assuming any obligations and costs related to administration of the relief

"It is not in the public interest to set a precedent whereby a TDU can impose additional costs on REPs to implement an adjustment to a TDU rate that the TDU has proposed without precedent or prior consultation and agreement from REPs—the TDU should solely bear this responsibility so it can accurately transmit its adjusted charges to REPs. Further, creating a process where CenterPoint is not in charge of compiling and maintaining a list of eligible customers could lead to billing issues that would be easily avoided if CenterPoint would assume this responsibility itself," the REP Coalition said

Docket 54830

ADVERTISEMENT
NEW Jobs on RetailEnergyJobs.com:
• NEW! -- Call Center Manager -- Retail Supplier
• NEW! -- Senior Billing Subject Matter - (Remote) -- Retail Supplier

Email This Story

HOME