Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter I - TRANSMISSION AND DISTRIBUTION › Division 1 - OPEN-ACCESS COMPARABLE TRANSMISSION SERVICE FOR ELECTRIC UTILITIES IN THE ELECTRIC RELIABILITY COUNCIL OF TEXAS › Section 25.193 - Distribution Service Provider Transmission Cost Recovery Factors (TCRF)

Current through Reg. 49, No. 28; July 12, 2024
(a) Application. The provisions of this
					 section apply to all investor-owned distribution service providers (DSPs)
					 providing distribution service within the Electric Reliability Council of Texas
					 (ERCOT) region to retail electric providers and other customers of the
					 distribution system.
(b) TCRF
					 authorized.
(1) A DSP subject to this section
					 that is billed for transmission service by a transmission service provider
					 (TSP) pursuant to §
												RSA
					 25.192 of this title (relating to
					 Transmission Service Rates) shall be allowed to include within its tariff a
					 TCRF clause that authorizes the DSP to charge or credit its customers for the
					 amount of wholesale transmission cost changes approved or allowed by the
					 commission to the extent that such costs vary from the transmission service
					 cost utilized to fix the base rates of the DSP. The DSP shall update its TCRF
					 twice per year on March 1 and September 1 to pass through the wholesale
					 transmission cost changes billed by a TSP. For the March 1 update, the DSP
					 shall file a request to update its TCRF no later than December 1; and for the
					 September 1 update, no later than June 1. Within 45 days after a DSP files a
					 request to update its TCRF, the commission shall issue an order establishing
					 the amount of the revised TCRF and suspend the effective date of the revised
					 TCRF as necessary so that the new TCRF charges will take effect on March 1 or
					 September 1, as applicable.
(2) A
					 DSP shall include in its TCRF update calculation:
(A) the cost of wholesale transmission cost
					 changes approved or allowed by the commission to the extent that such costs
					 vary from the transmission service cost utilized to fix the rates of the DSP;
					 and
(B) an adjustment amount, which
					 shall equal:
(i) the actual costs paid by the
					 DSP during the review period to TSPs as a result of increases in the TSPs'
					 wholesale transmission rates above the wholesale transmission rates of the TSPs
					 used to develop the retail transmission charges of the DSP in the DSP's last
					 rate case; minus
(ii) the revenues
					 recovered through the DSP's TCRF minus the portion of the adjustments approved
					 by the commission in the DSP's most recent two TCRF filings that were in effect
					 during the review period.
(iii) For
					 a March 1 TCRF update, the adjustment shall reflect the six-month period
					 beginning with the preceding May 1 and continuing through October 31 (review
					 period); for a September 1 update, the adjustment shall reflect the six-month
					 period beginning with the preceding November 1 and continuing through April 30
					 (review period). In no event shall a DSP's TCRF clause result in the DSP
					 recovering more than its actual cost of wholesale transmission service included
					 in the TCRF.