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TPUC Decides To Proceed With Settlement Reached By PUC Staff & Just Energy Request For Declaratory Order Interpreting ‘Fixed Price Product Rule’
At Its open meeting the Texas Public Utilities Commission (TPUC) decided to proceed with full consideration of a petition from PUC Staff who had requested issuance of a declaratory order providing that, under PURA § 39.112(a) and 16 TAC § 25.475(b)(5), retail electric providers (REPs) may not increase the price charged under a fixed rate contract entered on or after August 1, 2022 to reflect fluctuations in the amount of Securitization Charges incurred by a REP over the life of a customer’s fixed rate contract.
Previously on March 6, 2024, Texas PUC Staff, Just Energy and its affiliates and OPUC filed a motion for abatement announcing the parties have reached a settlement in principle concerning Staff’s petition for a declaratory order from the PUC interpreting 16 TAC § 25.475(b)(5), the fixed price product rule.
As previously reported, As also reported previously, the amount of Securitization Charges incurred by a REP will vary each month due to fluctuations in the REP’s load-share ratio or due to true-up adjustments.
Staff’s petition also raised issues related to Uri securitization charges incurred by Retail Electric Providers or REPs. Specifically, Commission Staff in its petition for a declaratory order (which would apparently be granted per the motion to abate) requested that the Commission enter an order declaring that, under PURA § 39.112(a) and 16 TAC § 25.475(b)(5), REPs may not increase the price charged under a fixed rate contract entered on or after August 1, 2022 to reflect fluctuations in the amount of Securitization Charges incurred by a REP over the life of a customer’s fixed rate contract.
The two questions identified in the proceeding had been certified to the Commission and were scheduled to be addressed at the March open meeting. One of the issues was: “Who are the persons and entities that may be affected by the declaratory order sought by Commission Staffs petition?”
In advance of the March 7th open meeting, Commissioner Cobos issued a memo proposing that such certified issue be answered as follows: “The Declaratory Order can affect all REPs currently serving residential and/or small commercial customers under a contract for a fixed rate product[.]”
From Joint Motion to Abate:
{***} The parties have reached a settlement in principle in which all parties agree that this proceeding should be resolved with a Commission order granting the declaration sought by Commission Staff’ s January 31, 2024 petition. As part of the settlement in principle, the parties will work collaboratively to prepare and file a settlement agreement and proposed order that reflects an agreed presentation of relevant facts and stipulations. Accordingly, on behalf of the parties, Commission Staff respectfully requests that this proceeding be abated to allow time for the parties to prepare and file a settlement package for the Commission’s consideration. The parties recommend that, because the scope of the settlement agreement will be limited to a declaration resolving only the real, discrete controversy at issue in this proceeding-that is, Commission Staff’s investigation of the Just Energy affiliates for the specific facts alleged in the January 31, 2024 petition-it is appropriate to abate this proceeding without addressing the issues certified to the Commission on February 2, 2024.
The parties acknowledge that, if settlement efforts are ultimately unsuccessful, the proceeding may be unabated and the certified issues may be considered by the Commission before further litigation ensues. {***}
Commissioner Cobos Memorandum (03/06/2024)
Joint Motion To Abate (03/06/2024)
Order No. 2 – Granting Intervention (03/04/2024)
Commission Staff’s Brief On Certified Issues (02/15/2024)
Order No. 1 – Certifying Issues To The Commission (02/02/2024)
Just Energy Texas LP’s Brief on Certified Issues (02/15/2024)
Petition For Declaratory Order (01/31/2024)
56168 (01/31/2024)
(Commission Staff’s Petition For A Declaratory Order Interpreting 16 TAC § 25.475(b)(5) – Petition For Declaratory Order – aka ‘Fixed Price Product Rule’)
