Texas Administrative Code › Title 16 - ECONOMIC REGULATION › Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS › Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS › Subchapter J - COSTS, RATES AND TARIFFS › Division 1 - RETAIL RATES › Section 25.243 - Distribution Cost Recovery Factor (DCRF)

Current through Reg. 49, No. 28; July 12, 2024
(a) Purpose and application. This section
					 implements Public Utility Regulatory Act (PURA) §36.210. This section
					 applies to electric utilities, including transmission and distribution
					 utilities (TDUs), that provide wholesale or retail distribution
					 service.
(b) Definitions. The
					 following terms, when used in this section, have the following meanings unless
					 the context indicates otherwise.
(1)
					 Capitalized operations and maintenance expenses--Expenses that have been
					 deferred or amortized as a regulatory asset or liability.
(2) DCRF proceeding--A proceeding conducted
					 pursuant to this section in which creation or amendment of a DCRF is considered
					 on application of an electric utility to the commission pursuant to subsection
					 (c)(1) of this section.
(3)
					 Distribution invested capital--The parts of the electric utility's invested
					 capital, as described in PURA §36.053, that are categorized as
					 distribution plant, distribution-related intangible plant, and
					 distribution-related communication equipment and networks properly recorded in
					 Federal Energy Regulatory Commission (FERC) Uniform System of Accounts 303,
					 352, 353, 360 through 374, 391, and 397. Distribution invested capital includes
					 only costs: for plant that has been placed into service; that comply with PURA,
					 including §36.053 and §36.058; and that are prudent, reasonable, and
					 necessary. Distribution invested capital does not include: generation-related
					 costs; transmission-related costs, including costs recovered through rates set
					 pursuant to §
												RSA
					 25.192 of this title (relating to
					 Transmission Service Rates), §
												RSA
					 25.193 of this title (relating to
					 Distribution Service Provider Transmission Cost Recovery Factors (TCRF)), or
					 §
												RSA
					 25.239 of this title (relating to
					 Transmission Cost Recovery Factor for Certain Electric Utilities); indirect
					 corporate costs; capitalized operations and maintenance expenses; and
					 distribution invested capital recovered through a separate rate, including a
					 surcharge, tracker, rider, or other mechanism. In a DCRF proceeding, an
					 electric utility may elect not to seek recovery of certain distribution
					 invested capital, but may not exclude all of the distribution invested capital
					 in one of the accounts identified above unless the electric utility can prove
					 that the distribution invested capital in the account reduced by the related
					 accumulated depreciation is greater than the distribution invested capital in
					 the account reduced by the related accumulated depreciation used in setting
					 rates in the electric utility's last comprehensive base-rate
					 proceeding.
(4) Net distribution
					 invested capital--Distribution invested capital less accumulated depreciation
					 and adjusted for any changes in distribution-related accumulated deferred
					 federal income taxes and excluding any impact associated with Financial
					 Accounting Standards Board Interpretation No.48 (FIN 48).
(5) Weather-normalized--Adjusted for normal
					 weather using weather data for the most recent ten calendar years.