Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter B - CUSTOMER SERVICE AND PROTECTION
Section 25.41 - Price to Beat
Universal Citation: 16 TX Admin Code § 25.41
Current through Reg. 50, No. 13; March 28, 2025
(a) Applicability. This section applies to all affiliated retail electric providers (REPs) and transmission and distribution utilities, except river authorities. This section does not apply to an electric utility subject to Public Utility Regulatory Act (PURA) §39.102(c) until the end of the utility's rate freeze.
(b) Purpose. The purpose of this section is to promote the competitiveness of the retail electric market through the establishment of the price to beat that affiliated REPs must offer to retail customers beginning on January 1, 2002 pursuant to PURA §39.202.
(c) Definitions. The following words and terms, when used in this section, shall have the following meanings, unless the context indicates otherwise:
(1) Affiliated
electric utility--The electric utility from which an affiliated REP was
unbundled in accordance with PURA §39.051.
(2) Competitive retailer--A REP or a
municipally owned utility or distribution cooperative that offers customer
choice in the restructured competitive electric power market or any other
entity authorized to sell electric power and energy at retail in
Texas.
(3) Headroom--The difference
between the average price to beat (in cents per kilowatt hour (kWh)) and the
sum of the average non-bypassable charges or credits approved by the commission
in a proceeding pursuant to PURA §39.201, or PURA Subchapter G (in cents
per kWh) and the representative power price (in cents per kWh). Headroom may be
a positive or negative number. A separate headroom number shall be calculated
for the typical residential customer and the typical small commercial customer.
The calculation for the typical residential customer shall assume 1,000 kWh per
month in usage. The calculation of the typical small commercial customer shall
assume 35 kilowatts (kW) of demand and 15,000 kWh per month in usage.
(4) Nonaffiliated REP--Any competitive
retailer conducting business in a transmission and distribution utility's
(TDU's) certificated service territory that is not affiliated with that TDU
unless the competitive retailer is a successor in interest to a retail electric
provider affiliated with that TDU.
(5) Peak demand--The highest 15-minute or
30-minute demand recorded during a 12-month period.
(6) Price to beat period--The price to beat
period shall be from January 1, 2002 to January 1, 2007. In a power region
outside the Electric Reliability Council of Texas (ERCOT) if customer choice is
introduced before the date the commission certifies the power region pursuant
to PURA §39.152(a) are met, the price to beat period continues, unless
changed by the commission in accordance with PURA Chapter 39, until the later
of 60 months after the date customer choice is introduced in the power region
or the date the commission certifies the power region as a qualified power
region.
(7) Provider of last resort
(POLR)--As defined in §
25.43 of this title (relating to
Provider of Last Resort).
(8)
Representative power price--The simple average of the results of:
(A) a request for proposals (RFP) for
full-requirements service of 10% of price to beat load for a duration of three
years expressed in cents per kWh; and
(B) the price resulting from the capacity
auctions of the affiliated power generation company (PGC) required by §
25.381 of this title (relating to
Capacity Auctions) for baseload capacity entitlements auctioned in the ERCOT
zone where the majority of price to beat customers reside, expressed in cents
per kWh. The calculation of the price resulting from the capacity auctions
shall assume dispatch of 100% of the entitlement and shall use the most recent
auction of a 12-month forward strip of entitlements, or the most recent
aggregated forward 12 months of entitlements. The affiliated REP, at its
option, may conduct an RFP or purchase auction for an amount equivalent to the
amount, in MWs, of the affiliated PGC's capacity auction for the September 2001
12-month forward strip baseload entitlements.
(9) Residential customer--Retail customers
classified as residential by the applicable transmission and distribution
utility tariff or, in the absence of classification under a residential rate
class, those retail customers that are primarily end users consuming
electricity for personal, family or household purposes and who are not
resellers of electricity.
(10)
Small commercial customer--A non-residential retail customer having a peak
demand of 1,000 kilowatts (kW) or less. For purposes of this section, the term
small commercial customer refers to a metered point of delivery. Additionally,
any non-residential, non-metered point of delivery with peak demand of less
than 1,000 kW shall also be considered a small commercial customer. For
purposes of subsection (i) of this section, unmetered guard and security lights
are not considered small commercial customers unless such an account has
historically been treated as a separate customer for billing
purposes.
(11) Transmission and
distribution utility--As defined in §
25.5 of this title (relating to
Definitions), except for purposes of this section, this term does not include a
river authority.
(d) Price to beat offer.
(1) Beginning with the
first billing cycle of the price to beat period and continuing through the last
billing cycle of the price to beat period, an affiliated REP shall make
available to residential and small commercial customers of its affiliated
transmission and distribution utility rates that, subject to the exception
listed in subsection (f)(2)(A) of this section, on a bundled basis, are 6.0%
less than the affiliated electric utility's corresponding average residential
and small commercial rates that were in effect on January 1, 1999, adjusted to
reflect the fuel factor determined in accordance with subsection (f)(3)(D) of
this section and adjusted for any base rate reduction as stipulated to by an
electric utility in a proceeding for which a final order had not been issued by
January 1, 1999.
(2) Unless
specifically required by commission rule, an affiliated REP may only sell
electricity to price to beat customers labeled or marketed as "green,"
"renewable," "interruptible," "experimental," "time of use," "curtailable," or
"real time," if and only if such a tariff option existed on January 1, 1999 and
only for service under the price to beat rate that was developed from that
tariff.
(e) Eligibility for the price to beat. The following criteria shall be used in determining eligibility for the price to beat:
(1)
Residential customers. All current and future residential customers, as defined
by this section, shall be eligible for the price to beat rate(s) for which they
meet the eligibility criteria in the applicable price to beat tariffs for the
duration of the price to beat period. An affiliated REP may not refuse service
under the price to beat to a residential customer except as provided by §
25.477 of this title (relating to
Refusal of Service). An affiliated REP may not require residential customers to
enter into service agreements with a term of service as a condition of
obtaining service under the price to beat, nor may an affiliated REP provide
any inducements to encourage customers to agree to a term of service in
conjunction with service under the price to beat.
(2) Small commercial customers.
(A) A non-residential customer taking service
from the affiliated electric utility on December 31, 2001, shall be considered
a small commercial customer under this section and shall be eligible for
service under price to beat tariffs if that customer's peak demand during the
12 consecutive months ending on September 30, 2001, does not exceed 1,000
kilowatts (kW). A non-residential customer with a peak demand in excess of
1,000 kW during the 12 months ending September 30, 2001, or during the price to
beat period, shall no longer be considered a small commercial customer under
this section. However, any non-residential customer whose peak demand does not
exceed 1,000 kW for any period of 12 consecutive months after it became
ineligible to be a small commercial customer under this section shall be
considered a small commercial customer for billing periods going forward for
purposes of this section.
(B) All
small commercial customers, as defined by this section, shall be eligible for
the price to beat rate(s) for which they meet the eligibility criteria in the
applicable price to beat tariffs for the duration of the price to beat period.
An affiliated REP may not refuse service under the price to beat to a small
commercial customer, except as provided by §
25.477 of this title. An
affiliated REP may not require small commercial customers to enter into service
agreements with a term of service as a condition to obtaining service under the
price to beat, nor may an affiliated REP provide any inducements to encourage
customers to agree to a term of service in conjunction with service under the
price to beat.
(f) Calculation of the price to beat.
(1) Rates to be used for price to beat
calculation. The following criteria shall be used in determining the rates to
be used for the price to beat calculation.
(A) Residential. A price to beat rate shall
be calculated for each rate and service rider under which a residential
customer was taking service on January 1, 1999, except as approved by the
commission pursuant to subparagraph (C) of this paragraph. A price to beat rate
shall not be calculated for any new service or tariff option granted to an
affiliated electric utility pursuant to PURA §39.054, or any other rate or
tariff option not in effect on January 1, 1999.
(i) Beginning with the first full billing
cycle of the price to beat period, residential customers served by the
affiliated REP shall be placed on the price to beat rate derived from the rate
under which they were taking service on December 31, 2001.
(ii) Beginning with the first full billing
cycle of the price to beat period, residential customers served by the
affiliated REP who were taking service under a rate for which a price to beat
rate was not developed, shall be placed on the price to beat rate derived from
any eligible residential rate that was or would have been available to the
customer on January 1, 1999.
(iii)
New residential customers after December 31, 2001, may choose any price to beat
rate for which they meet the eligibility requirements as detailed in the
applicable price to beat tariff.
(iv) Residential customers who return to the
affiliated REP after being served by a non-affiliated REP may choose any price
to beat for which they meet the eligibility requirements as detailed in the
applicable price to beat tariff(s).
(v) Notwithstanding clauses (i)-(iv) of this
subparagraph, residential customers may request service under any price to beat
rate for which they are eligible. Selection of the most advantageous rate shall
be the sole responsibility of the residential customer.
(B) Small commercial. A price to beat rate
shall be calculated for each rate and service rider under which a small
commercial customer was taking service on January 1, 1999, except as approved
by the commission pursuant to subparagraph (C) of this paragraph. A price to
beat rate shall not be calculated for any new service or tariff option granted
to an affiliated electric utility pursuant to PURA §39.054, or for any
rate of tariff option not in effect on January 1, 1999.
(i) Beginning with the first full billing
cycle of the price to beat period, small commercial customers served by the
affiliated REP shall be placed on the price to beat rate derived from the rate
under which they were taking service on December 31, 2001.
(ii) Beginning with the first full billing
cycle of the price to beat period, small commercial customers served by the
affiliated REP beginning in January of 2002, who were taking service under a
rate for which a price to beat rate was not developed, shall be placed on a
price to beat rate derived from an eligible rate that was or would have been
available to the customer on January 1, 1999.
(iii) New small commercial customers after
December 31, 2001, may choose any price to beat rate for which they meet the
eligibility requirements as detailed in the applicable price to beat
tariff.
(iv) Small commercial
customers who return to the affiliated REP after being served by a
non-affiliated REP may choose any price to beat rate for which they meet the
eligibility requirements as detailed in the price to beat tariff(s).
(v) Notwithstanding clauses (i)-(iv) of this
subparagraph, small commercial customers may request service under any price to
beat tariff for which they are eligible. Selection of the most advantageous
rate shall be the sole responsibility of the small commercial
customer.
(C) An
electric utility, on behalf of its future affiliated REP, shall file within 60
days of the effective date of this section, price to beat tariffs and
supporting workpapers for the price to beat rates developed in accordance with
subparagraphs (A) and (B) of this paragraph. At the time of this filing, the
affiliated REP may request that a price to beat rate not be developed from a
particular rate of service rider along with justification for the request. The
electric utility shall provide notice to all customers currently taking service
under such rates or service riders of the utility's request.
(2) Base rate component of price
to beat. For the eligible rates identified in paragraph (1) of this subsection,
the affiliated REP shall reduce each base rate component including any
purchased power cost recovery factor (PCRF), in effect for the affiliated
electric utility on January 1, 1999, by 6.0% in order to determine the base
rate component of the price to beat, with the following exceptions:
(A) If base rates for the affiliated electric
utility were reduced by more than 12% as the result of a final order issued by
the commission after October 1, 1998, then the price to beat shall be the rate
in effect as a result of a settlement approved by the commission after January
1, 1999.
(B) For affiliated REPs
operating in a region defined by PURA §39.401, the commission may reduce
rates by less than 6.0% if the commission determines a lesser reduction is
necessary and consistent with the capital requirements needed to develop the
infrastructure necessary to facilitate competition among electric
generators.
(C) Except as provided
in subparagraphs (A) and (B) of this paragraph, for any affiliated electric
utility that has stipulated to rate reductions in a proceeding for which a
final order had not been issued by January 1, 1999, such rate reductions shall
be deducted from the base rates in effect on January 1, 1999, in addition to
the 6.0% reduction. Such rate credits shall also be applied to the rates of the
transmission and distribution utility.
(3) Fuel factor component of price to beat.
(A) Each affiliated electric utility shall
file an application to establish one or more fuel factors, to be effective on
January 1, 2002, according to the following schedule:
(i) April 1, 2001 - Reliant Houston Lighting
& Power;
(ii) May 1, 2001 - TXU
Electric Company;
(iii) June 1,
2001 - Texas-New Mexico Power Company and Central Power & Light
Company;
(iv) July 1, 2001 -
Entergy Gulf States, Inc. and West Texas Utilities;
(v) August 1, 2001 - Southwestern Electric
Power Company and Southwestern Public Service Company.
(B) The rate year for the filing shall be
calendar year 2002. The affiliated electric utility shall follow the
requirements of §
25.237(a)(1), (b), (c) and
(e) of this title (relating to Fuel Factors)
and the Fuel Factor Filing Package of November 23, 1993, for the filing of its
fuel factor(s). To the extent that the commission has issued an order for a
utility that includes provisions relating to the price to beat fuel factor, the
price to beat fuel factor shall be set consistent with such an order.
(C) Subject to the limitations in clause (i)
and (ii) of this subparagraph, affiliated electric utilities may utilize
seasonal fuel factors to reflect the expected differences in the cost of the
market price of electricity throughout the year.
(i) Affiliated electric utilities with
seasonal fuel factors in effect on or before March 1, 2001, may request
seasonal fuel factors for their residential and small commercial price to beat
customers provided the level of seasonality is identical to that reflected in
its commission-approved fuel factors on March 1, 2001.
(ii) Affiliated electric utilities without
seasonal fuel factors in effect on or before March 1, 2001, may request
seasonal fuel factors to be applicable to small commercial price to beat
customers only. Any request for seasonal fuel factors under this clause must
demonstrate that the average small commercial customer will receive, on an
annual basis, a 6.0% reduction from the average bundled rate in effect on
January 1, 1999, adjusted for the final fuel factor determined under
subparagraph (D) of this paragraph; provided, however, that a utility subject
to the exception in paragraph (2)(A) of this subsection must demonstrate that
the average small commercial customer will receive, on an annual basis, the
average bundled rate in effect as the result of a settlement approved by the
commission after January 1, 1999, adjusted for the final fuel factor determined
under subparagraph (D) of this paragraph.
(D) Each affiliated electric utility shall
file additional information on October 1, 2001, to reflect changes in the price
of natural gas for the rate year of 2002. The affiliated electric utility shall
also file information necessary to determine the initial headroom that exists
under the price to beat as a result of the setting of the initial price to beat
fuel factor pursuant to this subparagraph. The adjustment shall be calculated
using the following methodology:
(i) For the
ten-day period ending on September 15, 2001, an average price shall be
calculated for each month of 2002 in the closing forward NYMEX Henry Hub
natural gas prices, as reported in the Wall Street Journal.
(ii) All other inputs into the calculation of
the fuel factors will be the same as those used to calculate the fuel factor in
subparagraphs (B) and (C) of this paragraph.
(iii) Except for affiliated electric
utilities whose base rates were reduced by more than 12% as the result of a
final order issued by the commission after October 1, 1998, the fuel factor(s)
to be used at the beginning of the price to beat period shall be the fuel
factor in effect on January 1, 1999, reduced by 6.0%, plus the difference
between the fuel factor(s) established pursuant to this subparagraph and the
fuel factor in effect on January 1, 1999.
(iv) The fuel factor(s) for affiliate
electric utilities whose base rates were reduced by more than 12% as the result
of a final order issued by the commission after October 1, 1998, to be used at
the beginning of the price to beat period shall be the fuel factor(s)
established pursuant to this subparagraph.
(E) For a non-generating investor-owned
utility with no fuel factor as of January 1, 1999, its PCRF in effect on
January 1, 1999, shall be the equivalent to a fuel factor for purposes of
calculating its price to beat rates and future fuel cost adjustments under
subsection (g) of this section. Upon expiration of a purchased power contract
of an affiliated REP unbundled from such a utility, the affiliated REP may
request a change in its PCRF to account for any difference in purchased power
costs.
(g) Adjustments to the price to beat.
(1) Fuel
factor adjustments. An affiliated REP may request that the commission adjust
the fuel factor(s) established under subsection (f)(3) of this section upward
or downward not more than twice in a calendar year if the affiliated REP
demonstrates that the existing fuel factor(s) do not adequately reflect
significant changes in the market price of natural gas and purchased energy
used to serve retail customers. As part of a filing made pursuant to this
paragraph, an affiliated REP may also request an adjustment to the seasonality
imparted to the fuel factor in accordance with subsection (f)(3)(C) of this
section. Alternatively, the commission may, as part of its approval of an
adjustment to the fuel factor, impose a change in the seasonality imparted to
the fuel factor. The methodology for calculating the adjustment to the fuel
factor(s) shall be the following:
(A) For
each day of the 20 trading-day period ending no later than two days before the
filing of a fuel factor adjustment application, an average of the closing
forward 12-month NYMEX Henry Hub natural gas prices, as reported by the
Wall Street Journal (either in print or on-line), is
calculated.
(B) The average forward
price for each trading day calculated in subparagraph (A) of this paragraph
will then be averaged to determine a 20 trading-day rolling price.
(C) The percentage difference between the
averaged 20 trading-day rolling price calculated under subparagraphs (A) and
(B) of this paragraph and the averaged price used to calculate the current fuel
factor(s) is calculated. If the current fuel factor was calculated through an
adjustment under subparagraph (E) of this paragraph, then the averaged 20
trading-day rolling price calculated concurrent with that adjustment shall be
used. If the percentage difference is 5.0% or more, then the current fuel
factor(s) may be adjusted, unless the filing is made after November 15 of a
calendar year, in which event the percentage difference must be 10% or
more.
(D) If the absolute value of
the percentage difference calculated in subparagraph (C) of this paragraph
meets or exceeds 5.0% (or 10% if applicable), then the current fuel factors are
deemed to be unreflective of significant changes in the market price of natural
gas and purchased energy. To adjust the current fuel factor(s), the percentage
difference calculated in subparagraph (C), either positive or negative, is
added to one and then multiplied by the current factor(s). The results are the
adjusted fuel factor(s) that will be implemented according to the procedural
schedule in clause (i) and (ii) of this subparagraph:
(i) if no hearing is requested within 15 days
after the petition has been filed, a final order shall be issued within 20
days, or as soon as practicable thereafter, after the petition is
filed;
(ii) if a hearing is
requested within 15 days after the petition is filed, a final order shall be
issued within 45 days, or as soon as practicable thereafter, after the petition
is filed. The 45 day timeline for issuance of an order may be extended upon
mutual agreement of the parties. Such agreement may provide for interim rate
relief.
(E) In addition
to the adjustment permitted under subparagraphs (A)-(D) of this paragraph, an
affiliated REP may also request an adjustment to the fuel factor if the
headroom under the price to beat decreases as a result of significant changes
in the price of purchased energy. In making a request under this subparagraph:
(i) an affiliated REP shall demonstrate that:
(I) the representative power price has
changed such that the headroom under the price to beat has decreased;
and
(II) the adjustment to the fuel
factor is necessary to restore the amount of headroom that existed at the time
that the initial price to beat fuel factor was set by the commission using then
current forecasts of the representative power price.
(III) an affiliated REP making an adjustment
under this subparagraph shall also file the gas price calculation in
subparagraphs (A) and (B) of this paragraph for purposes of subsequent
adjustments to the fuel factor based on changes in natural gas
prices.
(ii) the
commission will issue a final order on an application filed under this
subparagraph within 60 days, or as soon as practicable thereafter, after the
application is filed. The 60 day timeline for issuance of an order may be
extended upon mutual agreement of the parties. Such agreement may provide for
interim rate relief.
(F)
The commission shall, upon a showing made by an interested party, that a
sufficiently liquid electricity commodity trading hub (or hubs) or index has
developed for the affiliated REP's relevant geographic or power region, allow
an affiliated REP to transition to the use of electricity commodity futures
prices at that hub or index to adjust the fuel factor to adequately reflect
significant changes in the price of purchased energy. After the commission has
made a finding that a sufficiently liquid electricity commodity trading hub or
index has developed, the affiliated REP shall be required to perform an
additional adjustment under subparagraphs (A) through (D) or (E) of this
paragraph before utilization of the futures prices at that trading hub or index
to change the fuel factor so that a benchmark electricity price can be
established. Subsequent changes to the fuel factor shall be based on the
percentage change in the electricity commodity index using the same methodology
for the natural gas price adjustment under subparagraphs (A) - (D) of this
paragraph.
(2)
Adjustment for financial integrity. Upon a finding that an affiliated REP will
be unable to maintain its financial integrity if it complies with subsection
(f) of this section, the commission shall set the affiliated REP's price to
beat at the minimum level that will allow the affiliated REP to maintain its
financial integrity. However, in no event shall the price to beat exceed the
level of rates, on a bundled basis, charged by the affiliated electric utility
on September 1, 1999, adjusted for fuel.
(3) True-up adjustment. The commission shall
adjust the price to beat following the true-up proceedings under PURA
§39.262. The commission shall consider the following adjustments to the
price to beat on a schedule consistent with the processing of the TDU rate
adjustment application pursuant to §
25.263(n) of
this title (relating to True-up Proceeding):
(A) Fuel factor adjustment. A 20 trading-day
rolling price shall be calculated in accordance with paragraph (1)(A)-(D) of
this subsection. If the 20 trading-day rolling price is less than the price
used to calculate the then-current fuel factor (i.e. The percentage difference
is negative), then the price to beat fuel factor shall be adjusted downward by
the percentage difference in the prices. An adjustment required to be made in
accordance with this subparagraph shall not be considered a request by an
affiliated REP under paragraph (1) of this subsection.
(B) Base rate adjustment. Using the typical
residential and small commercial usage calculations described in subsection
(c)(3) of this section, the base rate components of the price to beat shall be
adjusted, either upward or downward, such that the difference between the
average price to beat base rate and the average non-bypassable charges that
exist following the proceeding pursuant to §
25.263(n) of
this title is the same as existed on January 1, 2002. Each component of the
base rates for each residential price to beat base rate tariff shall be
adjusted in the same proportion in complying with this section. Each component
of the base rates for each small commercial price to beat base rate tariff
shall be adjusted in the same proportion in complying with this
section
(C) Filing by affiliated
REP. An affiliated REP shall make filings necessary to implement subparagraphs
(A) and (B) of this paragraph on a schedule to be determined by the
commission.
(h) Non-price to beat offers.
(1) Offers to residential customers. An
affiliated REP may not offer any rates other than the price to beat rates to
residential customers within the affiliated electric utility's service area
until the earlier of 36 months after the date customer choice is introduced, or
when the commission determines that an affiliated REP has met or exceeded the
threshold target for residential customers described in subsection (i) of this
section.
(2) Offers to small
commercial customers. An affiliated REP may not offer rates other than the
price to beat rates to small commercial customers until the earlier of 36
months after the date customer choice is introduced, or when the commission
determines that an affiliated REP has met or exceeded the threshold target for
small commercial customers described in subsection (i) of this
section.
(3) Offers to aggregated
small commercial load. Notwithstanding paragraph (2) of this subsection, an
affiliated REP may charge rates different from the price to beat for service to
aggregated loads having an aggregated peak demand in excess of 1,000 kW
provided that all affected customers are commonly owned or are franchisees of
the same franchisor.
(A) If aggregated
customers whose loads are served by an affiliated REP in accordance with this
subsection disaggregate, those individual customers may resume service under
the applicable price to beat rate(s), provided that those customers meet the
eligibility requirements of subsection (e) of this section.
(B) Any usage removed from the threshold
calculation in subsection (i)(1)(B) of this section due to aggregation shall be
added back into the threshold calculation upon disaggregation of the aggregated
load.
(i) Threshold targets.
(1) Calculation of
threshold targets.
(A) Residential target. The
residential threshold target shall be equal to 40% of the total number of
kilowatt-hours (kWh) consumed by residential customers served by the affiliated
electric utility during the calendar year 2000.
(B) Small commercial target. The small
commercial threshold target shall be equal to 40% of the following difference:
the total number of kWh consumed by small commercial customers served by the
affiliated electric utility during the calendar year 2000 minus the aggregated
load served by the affiliated REP that complies with the requirements of
subsection (h)(3) of this section. The kWh associated with a customer who
becomes ineligible for the price to beat because the customer's peak demand
exceeds 1,000 kW shall also be removed from the threshold target.
(2) Meeting of threshold targets.
Upon a showing by the affiliated transmission and distribution utility that the
electric power consumption of the relevant customer group served by
nonaffiliated REPs meets or exceeds the targets determined by the calculation
in paragraph (1) of this subsection, the affiliated REP may offer rates other
than the price to beat.
(A) Calculation of
residential consumption. The amount of electric power of residential customers
served by nonaffiliated REPs shall equal the number of residential customers
served by nonaffiliated REPs, except customers that the affiliated REP has
dropped to the POLR, times the average annual consumption of residential
customers served by the affiliated utility during the calendar year 2000.
(i) The number of customers served by
nonaffiliated REPs shall be determined by summing the number of customers in
the transmission and distribution utility's certificated service area with a
designated REP other than the affiliated REP in the registration database
maintained by the registration agent. Customers dropped to the POLR by the
affiliated REP shall not count as load served by a nonaffiliated REP.
(ii) The average annual consumption shall be
calculated by dividing the total kWh consumed by residential customers during
the calendar year 2000 by the average number of residential customers during
the calendar year 2000. The average number of residential customers during the
calendar year 2000 shall be calculated by dividing the sum of the total number
of such customers for each month of the year 2000 by 12.
(B) Calculation of small commercial
consumption. The amount of electric power consumed by small commercial
customers served by nonaffiliated REPs shall be determined using the following
criteria, except that customers served by the POLR shall not count as load
served by a nonaffiliated REP:
(i) The amount
of electric power of small commercial customers with peak demand less than 20
kW consumed by nonaffiliated REPs shall be equal to the number of small
commercial customers with peak demand less than 20 kW served by nonaffiliated
REPs times the average annual consumption of small commercial customers with
peak demand less than 20 kW served by the affiliated electric utility during
the calendar year 2000.
(I) The number of
customers served by nonaffiliated REPs shall be determined by summing the
number of small commercial customers with peak demands less than 20 kW served
in the transmission and distribution utility's certificated service area with a
designated REP other than the affiliated REP in the registration database
maintained by the registration agent.
(II) The average annual consumption shall be
calculated by dividing the total kWh consumed by small commercial customers
with peak demand of less than 20 kW during the calendar year 2000 by the
average number of small commercial customers with peak demand of less than 20
kW during the calendar year 2000. The average number of small commercial
customers with peak demand of less than 20 kW shall be calculated by dividing
the total number of such customers for each month of 2000 by 12.
(ii) The amount of electric power
consumed by small commercial customers with peak demand in excess of 20 kW
shall be the actual usage of those customers during the calendar year 2000.
(I) If less than 12 months of consumption
history exists for such a customer during the calendar year 2000, the available
calendar year 2000 usage history shall be supplemented with the most recent
prior history of service at that customer's location for the unavailable
months.
(II) For customers with
service to a new location, the annual consumption shall be deemed to be equal
to the estimated maximum annual demand used by the affiliated transmission and
distribution utility in sizing the facilities installed to serve that customer
multiplied by the product of 8,760 hours and the average annual load factor for
small commercial customers with peak demand greater than 20 kW for the year
2000.
(j) Prohibition on incentives to switch. An affiliated REP may not provide an incentive to switch to a nonaffiliated REP, promote any nonaffiliated REP, or exchange customers with any nonaffiliated REP in order to meet the requirements of subsection (f) of this section. Non-affiliated REPs may not provide an incentive to return to the price to beat.
(k) Disclosure of price to beat rate. An affiliated retail electric provider shall disclose to customers, the price to beat in accordance with §25.471 (relating to General Provisions of Customer Protection Rules). In addition, if an affiliated REP offers a rate greater than the price to beat, the price to beat rate must be disclosed along with a statement that the customer is eligible for the price to beat. This disclosure must appear on all written authorizations, Internet authorizations, the electricity facts label and Terms of Service document. It must also be disclosed during telephone solicitations before the customer authorizes service.
(l) Filing requirements.
(1) On determining that its
affiliated retail electric provider has met the requirements of subsection (i)
of this section, an electric utility or transmission and distribution utility
shall make a filing with the commission attesting under oath to the fact that
those requirements have been met and that the restrictions of subsection (h) of
this section as well as the true-up in PURA §39.262(e) are no longer
applicable.
(2) An electric utility
or transmission and distribution utility shall file a progress report with the
commission after its affiliated REP has met the requirements of subsection (i)
of this section using a 35% threshold target in lieu of a 40% threshold. Such
progress reports(s) shall be filed no later than 30 days after the 35%
threshold has been met and shall contain the same information required in this
subsection.
(3) No later than
December 31, 2001, each transmission and distribution utility shall determine
the power consumption threshold targets under subsection (i) of this section
for residential and small commercial customers within its certificated service
area and shall file this information with the commission and shall also make
this information publicly available through its Internet website. Each
transmission and distribution utility, together with its affiliated REP, shall
update the small commercial power consumption threshold as needed to reflect
additional small commercial load that has met the requirements of subsection
(h)(3) of this section and therefore is appropriately removed from the
calculation of the threshold target. Concurrent with this update, the
transmission and distribution utility, together with its affiliated REP, shall
provide, for each group of aggregated customers that have been removed from the
calculation of the threshold target, the customers' names, electric service
identifiers, size of the customers' loads (individually and in the aggregate),
and how the customers meet the requirements of subsection (h)(3) of this
section. Such information may be filed under confidential seal. All
certificated REPs shall be deemed to have standing to review such
filings.
(4) Any application filed
pursuant to this subsection shall contain the following information:
(A) a detailed explanation of how the
relevant customer group has met or exceeded the threshold consumption targets
in subsection (i) of this section;
(B) calculation of the power consumption
threshold target under subsection (i) of this section for the relevant customer
group and the date such target was met;
(C) verification of the meeting of the
threshold target in the following manner:
(i)
for the residential customer class, independent verification from the
registration agent verifying the number of customers in the residential
customer class within the transmission and distribution utility's certificated
service area that are committed to be served by non-affiliated REPs.
(ii) for the small commercial class, an
affidavit detailing the number of customers in the small commercial class with
peak demand below 20 kW within the transmission and distribution utility's
certificated service area committed to be served by non-affiliated REPs and the
customers with peak demand in excess of 20 kW with their actual usage
calculated in accordance with subsection (i)(2)(B)(ii) of this section within
the transmission and distribution utility's certificated service area that are
committed to be served by non-affiliated REPs.
(iii) For purposes of this subsection, a
residential and small commercial customer has committed to be served by a
nonaffiliated retail electric provider if the registration agent has received a
switch request for that customer and any mandated cancellation period pursuant
to applicable commission rule has expired.
(5) The commission staff shall review all
applications filed under this subsection and shall make a recommendation to the
commission within ten days after the application is filed to approve or reject
the application. If a filing has insufficient information from which the
commission can make a determination, the commission may reject the filing
without prejudice for refiling the application. The commission shall issue an
order approving or rejecting the application within 30 days after the
application is filed. An electric utility or transmission and distribution
utility filing an application under this subsection shall not charge rates
different from the price to beat until the earlier of 36 months after the date
customer choice is introduced or the date such application has been approved by
the commission.
Disclaimer: These regulations may not be the most recent version. Texas may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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