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PUCT Staff Seek Comments on Draft Report on Evaluation of Transmission Cost Recovery
In its Staff Memo and Draft Report filed on March 16th with the Public Utilities Commission of Texas (PUCT), Staff invites public comments on each of the draft recommendations regarding its evaluation of transmission cost recovery issues identified below.
Note that Commission Staff is seeking comments on the draft report before a final report will be presented to the Commission for its consideration.
Comments are due by April 13, 2026.
Among other things, parties are asked to comment upon the following:
Wholesale Transmission Cost Recovery
Rate design
- Change the methodology for assessing wholesale transmission costs on distribution service providers to a coincident peak (CP) methodology with a greater number of CPs.
- Lengthen the interval over which a coincident peak period is measured.
Retail Transmission Cost Recovery
Interconnection costs
- Eliminate cost allowances related to interconnecting large load customers.
- Require large load customers to pay a portion of system upgrade costs.
Cost allocation
- Require annual updates to allocation factor values.
Rate design
- Require large load customers to pay a minimum demand charge that is based on the large load customer’s contracted peak demand for a 10 to 15 year period.

