Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter O - UNBUNDLING AND MARKET POWER › Division 5 - COMPETITION IN NON-ERCOT AREAS › Section 25.422 - Transition to Competition for Certain Areas within the Southwest Power Pool

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose. The purpose of this section is
					 to address the process and the sequence of events for the introduction of
					 retail competition in the Southwestern Electric Power Company service area in
					 Texas (SWEPCO) and in the Southwest Power Pool portion of the AEP Texas North
					 Company service area in Texas (Texas North-SPP).
(b) Application. This section shall apply to
					 SWEPCO and Texas North-SPP (collectively referred to as "the utilities"). In
					 the event that the customers, facilities, and the service area of Texas
					 North-SPP are transferred to SWEPCO, the requirements of this section shall
					 apply to the combined company.
(c)
					 Readiness for retail competition. The commission determines that the power
					 region in which SWEPCO and Texas North-SPP are located will be unable to offer
					 fair competition and reliable service to all retail customer classes in Texas
					 until January 1, 2011, at the earliest. Therefore, pursuant to Public Utility
					 Regulatory Act (PURA) §39.103, the introduction of full retail competition
					 for these portions of the power region in Texas shall be further delayed until
					 this region can offer fair competition and reliable service to all retail
					 customer classes, subject to the terms and conditions established in this
					 section.
(d) Cost-of-service
					 regulation. Until the date authorized by the commission for the implementation
					 of full retail competition in SWEPCO and Texas North-SPP pursuant to this
					 section, the rates of the utilities are subject to regulation under PURA
					 Chapter 36. Until full retail competition begins, the utilities shall file
					 Annual Earnings Reports as required by §
											RSA
					 25.73 of this title (relating to Financial
					 and Operations Reports) in lieu of the Annual Report required by PURA
					 §39.257.
(e) Transition to
					 competition. Full retail competition shall not be introduced in the utilities'
					 service areas before January 1, 2011. In addition, the introduction of retail
					 competition in the utilities' service areas shall be conditioned on successful
					 fulfillment of the sequence of events and activities set forth in paragraphs
					 (1) - (5) of this subsection. All the listed items in each stage must be
					 completed before the next stage is initiated. Unless stated otherwise in this
					 section, each of the activities will be conducted by the commission in
					 conjunction with SWEPCO and Texas North-SPP and other interested parties. Full
					 retail competition will not begin in SWEPCO and Texas North-SPP until
					 completion of the fourth stage.
(1) Completed
					 Activities. The stages outlined below assume that the following activities have
					 been completed, by SWEPCO and Texas North-SPP:
(A) The initiation of a pilot program,
					 including the establishment of rates for the pilot program.
(B) The filing of a business separation plan
					 and unbundled cost of service.
(C)
					 The separation of competitive energy services.
(D) Approval by the Federal Energy Regulatory
					 Commission (FERC) of a regional transmission organization for the power region
					 containing the utilities' service areas and the commencement of independent
					 operation of the transmission network that ensures non-discriminatory access,
					 by the approved regional transmission organization.