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Texas Bill Would Allow TDUs To Implement Interim Rates
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A Texas bill (HB 3157) would allow TDUs to implement interim rates during the pendency of a rate case
Under current statute, the PUC may authorize temporary rates while a rate case is pending, but a TDU currently cannot on its own authority implement interim rates
HB 3157 would require that TDUs must provide retail electric providers at
least 45 days notice before any such interim rates take effect
The interim rate may not exceed the rate proposed under the rate case
HB 3157 requires the TDU to credit or refund any over-collection which results from the application of the interim rates, versus the ultimately adopted rates
HB 3157 also authorizes the TDU to "surcharge bills" to collect any under-recovery which resulted to the extent the interim rates were less than the rates ultimately approved in the rate case
Notably, unlike with respect to interim rates, HB 3157 does not provide that REPs shall be provided with 45 days notice of any such surcharge imposed by the TDU
Generally, HB 3157 increases the amount of times a REP may need to adjust its billing to reflect changes in the TDU rate, as the process could look like the following: (1) current rates → (2) interim rates → (3) final rates, and → (4) surcharge rate (it is unclear if any surcharge would be implemented as a temporary rider, which would then include at least two adjustments, first, the start of the rider, and, second, the termination of the rider, with the additional potential for further reconciliations)
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February 24, 2025
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Copyright 2025 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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