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Proposed ALJ Order Filed Re: Oncor’s Proposed Distribution Cost Recovery Factor Applicable To REPs & Dispute On Effective Date For New Rates
A Texas administrative law judge (ALJ) has issued a proposal for decision that would adopt new Distribution Cost Recovery Factor (DCRF) rates applicable to retail electric providers (REPs) with Oncor that also addresses the correct effective date of the DCRF.
The Texas Energy Association for Marketers (TEAM) and Alliance for Retail Markets (ARM) have argued that Oncor’s new DCRF rates cannot be implemented until 45 days after approval by the Commission, citing PURA § 36.210(b)(2), which requires notice of “approved rates”, not proposed or interim rates.
Oncor on the other hand argues that legislative changes to accelerate DCRF proceedings permit its proposed effective date of May 15, 2024. This is the deadline for PUC action on its application (an accelerated 60-day review plus an additional 15-day extension which the PUC invoked in the proceeding). Oncor argues that its March 1 filing of its proposed rates, which is more than 45 days before the sought effective date, complies with the requirement to notify REPs at least 45 days in advance of the new rates.
The ALJ sides with TEAM and ARM’s position:
“[T]he ALJ recommends that the Commission approve Oncor’s request to amend its DCRF as requested, subject to reconciliation in Oncor’s next base-rate proceeding, but that the new rates should be effective on bills rendered on and after the first day of the month following Oncor’s provision of 45 days’ notice of the approved rates to retail electric providers (REPs) that take electric delivery service from Oncor.”
In its order the ALJ also notes that Oncor has appealed the ALJ’s prior interim order denying the implementation of “interim” rates effective May 1. That appeal to the PUC concerning whether interim rates may be implemented is still outstanding.
Proposal For Decision With Memorandum – Addressing The Distribution Cost Recovery Factor Component Of The Application (04/19/2024)
Docket 56306 (Opened 03/01/2024)
Application Of Oncor Electric Delivery Company LLC To Amend Its Distribution Cost Recovery Factor And Update Mobile Generation Riders
