News Stories
Sponsored by Earth Etch. Regulatory insight and compliance solutions for today’s energy markets.
Texas REP Coalition’s Rehearing Request Re: Ancillary Service Goes Unanswered
{***} “The Commission voted to not add the Motion for Rehearing of the Commission’ s Order signed on December 19, 2024, to any open meeting agenda.”
Per the Commission’s Rule §22.264(e) on Rehearing, “Upon the filing of a timely motion for rehearing or a timely motion to extend time, the Commission Advising and Docket Management Division shall send separate ballots to each commissioner to determine whether they will consider the motion at an open meeting. Untimely motions shall not be balloted. An affirmative vote by one commissioner is required for consideration of a motion for rehearing or a motion to extend time at an open meeting. If no commissioner votes to add a timely motion to extend time to an open meeting for consideration, the motion is overruled ten days after the motion is filed.”
Since no Commissioner affirmatively supported motion for rehearing, the petition was not taken up.
As reported previously, the Texas Energy Association for Marketers (TEAM) and Alliance for Retail Markets (ARM) (jointly, the REP Coalition filed motion for rehearing of PUCT’s declaratory order.
Among other things the REP Coalition argued “Even assuming arguendo that knowledge of the quantities of a new ancillary service that would be procured equates to a determination that those costs were then within the REPs control, the REPs were not able to control the costs reflected in residential and small commercial contracts executed prior to the date of approval of the Ancillary Service Methodology referenced in the order”.
In its petition the REP coalition also requested, “at a minimum, the Declaratory Order be modified to establish the date on which existing residential and small commercial fixed price product contracts should have reflected that cost,” designating ECRS “an ancillary service incurring charges beyond a REP’s control for a customer’s existing contract (i.e., a fixed-rate product) that was executed on or before December 20,2022.”
As background, the Texas Energy Association for Marketers (TEAM) and Alliance for Retail Markets (ARM) (jointly, the REP Coalition) petitioned the PUCT designate ERCOT Contingency Reserve Service (ERCS) as an ancillary service incurring a cost beyond a retail electric provider’s control, under 16 Texas Administrative Code (TAC) §25.475(b)(5). Under this regulation, “the price of a fixed rate product ‘may not vary from the disclosed amount to reflect changes in ancillary service charges unless the commission expressly designates a specific type of ancillary service product as incurring charges beyond the REP’s control for a customer’s existing contract.’ The combined effect of these provisions is to require an express Commission designation regarding a new ancillary service before a REP can apply a one-time price increase to an existing contract for a residential or small commercial fixed rate product that was executed before the implementation of the new ancillary service.”
Commission Advising 01/22/2025)
(The Commission Voted To Not Add The Motion For Rehearing To Any Open Meeting Agenda)
REP Coalition Request For Reconsideration (01/13/2025)
55959 (Opened 12/08/2023)
