Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter I - TRANSMISSION AND DISTRIBUTION
Division 2 - TRANSMISSION AND DISTRIBUTION APPLICABLE TO ALL ELECTRIC UTILITIES
Section 25.221 - Electric Cost Separation
Current through Reg. 50, No. 13; March 28, 2025
(a) Purpose. The purpose of this section is to identify the costs incurred by electric utilities that provide retail electric utility service, and to separate such costs into four categories: generation service, transmission service, distribution service, and customer service. This section establishes procedures for cost separation.
(b) Application. This section shall apply to electric utilities that provide retail electric service in Texas. This section shall not apply to municipal utilities.
(c) Definitions. As used in this section, the following terms have the following meanings unless the context clearly indicates otherwise:
(d) Cost separation. Affected utilities shall maintain a cost-accounting and records system based on the Federal Energy Regulatory Commission chart of accounts system, as it may be updated, to ensure that the costs associated with generation service, transmission service, distribution service, and customer service are accurately and separately identified. Affected utilities shall create and maintain any additional accounts necessary to identify and separate costs incurred to provide retail electric utility service. Within the customer service category, the utility shall separate its costs on its books in sufficient detail to track costs specific to unique services, activities, or functions. The commission may adopt cost separation guidelines to assist affected utilities in separating their costs.
(e) Compliance filing.