News Stories

As previously reported, Commission Staff of the Texas PUC filed a petition to establish a secondary cap on performance bonuses under 16 TAC § 25.182(e) for the 2024 Program Year at 1 (Oct. 3,2024).

Commission Staff was then directed, and other interested persons were allowed, to file a list of issues to be addressed in the docket and also identify any issues not to be addressed and any threshold legal or policy issues that should be addressed by November 25,2024. Commission Staff timely filed a list of issues. A list of issues jointly proposed by AEP Texas, El Paso Electric, Entergy Texas, and Southwestern Electric Power Company was also timely filed.

After reviewing the pleadings submitted by the parties, the Commission identifies the following issues that must be addressed in this docket:

1. Did Commission Staff provide sufficient notice of the petition?6 
2. Is it appropriate for the Commission to grant the petition? 
3. Is there good cause to impose a secondary cap on EECRF performance bonuses for program year 2024?7 
4. Did any unprecedented or extraordinary circumstances affect summer 2023 energy prices? If so, identify each circumstance.
5. How did each circumstance affect summer 2023 energy prices?
6. What was the aggregate effect of the circumstances on summer 2023 energy prices?
7. Did the circumstances result in energy price fluctuations that were significant in comparison to price fluctuations affecting previous summer energy prices?

1. Did unprecedented or extraordinary circumstances affect summer 2023 energy prices to the extent that there is good cause to deviate from the formula used to calculate EECRF performance bonuses for program year 2024? If so, please address the following subissues: 
2. What is the appropriate means of addressing the impact of summer 2023 energy prices on the calculation of performance bonuses for program year 2024? 
3. Will capping program year 2024 performance bonuses at a percentage of a utility’s overall spending for program year 2024 address the impact of the 2023 energy prices? If so, is it appropriate to set the cap at 25% of a utility’s overall spending for program year 2024?

This list of issues is not intended to be exhaustive. The parties and the ALJ are free to raise and address any issues relevant in this docket that they deem necessary, subject to any limitations imposed by the ALJ or by the Commission in future orders issued in this docket. The Commission may identify and provide to the ALJ in the future any additional issues or areas that must be addressed, as permitted under Texas Government Code § 2003.049(e). 

III. Effect of Preliminary Order 

This Order is preliminary in nature and is entered without prejudice to any party expressing views contrary to this Order before the SOAH ALJ at hearing. The SOAH ALJ, upon his or her own motion or upon the motion of any party, may deviate from this Order when circumstances dictate that it is reasonable to do so. Any ruling by the SOAH ALJ that deviates from this Order may be appealed to the Commission. The Commission will not address whether this Order should be modified except upon its own motion or the appeal of a SOAH ALJ’s order. Furthermore, this Order is not subject to motions for rehearing or reconsideration. {***}

Staff’s Petition To Establish Secondar Cap On PCM Bonuses  (12/12/2024)
57172  (10/03/2024)
Commission Staff’s Petition to Establish a Secondary Cap on Performance Bonuses Under 16 TAC § 25.182(e) for the 2024 Program Year.