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Texas ALJ Denies CenterPoint-TDU’s Request For Interim DCRF Rates
Re: Application Of AEP Texas Inc. To Amend Its Distribution Cost Recovery Factor
The Chief ALJ of the Texas PUC denied a request from CenterPoint Energy Houston Electric, LLC (CenterPoint or CEHE) for interim Distribution Cost Recovery Factor rates in CEHE’s DCRF proceeding in Docket 55993
As reported previously, the request for interim rates had been opposed by several parties including retail electric providers (REPs).
“The administrative law judge (ALJ) has read CenterPoint’s and the intervenors’ filings on the issue and is persuaded by the arguments made by the intervenors. Among other things, the ALJ notes that the need for interim rates is much more attenuated in proceedings of this kind (which must be decided within a maximum of 75 days) than it is in a standard rate case (which can take a year or more). Having considered the factors listed in 16 TAC § 22.125(c), the ALJ concludes that CenterPoint has failed to show good cause for the adoption of interim rates. The company’s request for interim rates is, therefore, denied.”
As previously reported, several TDUs have sought interim rates in recent DCRF proceedings, arguing that, under changes in PURA accelerating the consideration of DCRF cases by the PUC, interim rates are required to provide the required notice to REPs of new rates while maintaining the accelerated case schedule.
“REPs must devote significant time and resources to implement a TDU rate change. Finally, if interim relief is granted, and the Commission approves a rate adjustment different than the interim rates, then the public will see two rate changes within a short period of time. That impact cannot be minimized.”
Order No. 3 – Denying Request For Interim Rates (01/09/2023)
55993 (12/14/2023)
See also: 55820 (Application of AEP Texas To Amend Its Distribution Cost Recovery Factor) (11/15/2024)
