Texas ALJ Issues Proposed Order On Oncor DCRF, Addressing REP/TDU Dispute On Effective Date For New Rates

April 19, 2024

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Copyright 2010-24 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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A Texas ALJ has issued a proposal for decision that would adopt new Distribution Cost Recovery Factor (DCRF) rates applicable to retail electric providers at Oncor

In the proceeding, REPs and Oncor have sought different effective dates for the new DCRFs

Oncor argues that legislative changes to accelerate DCRF proceedings permit its proposed effective date of May 15, 2024. This is the deadline for PUC action on its application (an accelerated 60 day review plus an additional 15-day extension which the PUC invoked in the proceeding). Oncor argues that its March 1 filing of its proposed rates, which is more than 45 days before the sought effective date, complies with the requirement to notify REPs at least 45 days in advance of the new rates

The Texas Energy Association for Marketers (TEAM) and Alliance for Retail Markets (ARM) argue that Oncor’s new DCRF rates cannot be implemented until 45 days after approval by the Commission, citing PURA § 36.210(b)(2), which requires notice of "approved rates", not proposed or interim rates

The ALJ agrees with TEAM and ARM.

The ALJ said that changes to PURA require that the PUC issue a final order in a DCRF proceeding within 60 days. These changes do not, the ALJ said, impose a deadline for the effective date of any new rates; the deadline only addresses a Commission decision

The ALJ said that PURA § 36.210(b)(2), which was not modified under the changes to PURA, still controls the effective date for rates, and requires 45 days notice to REPs of "approved" new rates, not proposed rates

"Therefore, the ALJ recommends that the Commission approve Oncor’s request to amend its DCRF as requested, subject to reconciliation in Oncor’s next base-rate proceeding, but that the new rates should be effective on bills rendered on and after the first day of the month following Oncor’s provision of 45 days’ notice of the approved rates to retail electric providers (REPs) that take electric delivery service from Oncor," the ALJ said

The ALJ's proposed decision addresses the issue of final adoption of new DCRF rates

The ALJ noted that Oncor has appealed the ALJ's prior interim order denying the implementation of "interim" rates effective May 1. That appeal to the PUC concerning whether interim rates may be implemented is still outstanding

Docket 56306

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