Texas Administrative Code
Title 16 - ECONOMIC REGULATION
Part 2 - PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25 - SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter J - COSTS, RATES AND TARIFFS
Division 1 - RETAIL RATES
Section 25.247 - Rate Review Schedule
Universal Citation: 16 TX Admin Code § 25.247
Current through Reg. 50, No. 13; March 28, 2025
(a) Application. This section applies to investor-owned electric utilities and non-investor-owned transmission service providers operating inside the Electric Reliability Council of Texas (ERCOT).
(b) Filing requirements for investor-owned electric utilities.
(1) Each investor-owned
electric utility in the ERCOT region must file for a comprehensive rate review
within 48 months of the order setting rates in its most recent comprehensive
rate proceeding or other proceeding in which the commission approved a
settlement agreement reflecting a rate modification that allowed the electric
utility to avoid the filing of such a rate case. For an investor-owned
transmission and distribution utility, the filing must include information
necessary for the review of both transmission and distribution rates.
(2) On a year-to-year basis, the commission
shall issue an order extending the filing requirements under paragraph (1) of
this subsection by one year if the following conditions are met:
(A) for an investor-owned electric utility
providing transmission-only service, the utility's most recent earnings
monitoring report, as of 180 days before its scheduled filing date established
by this section, filed in compliance with commission rules and instructions or
as adjusted by the commission to conform with the rules and instructions, shows
that it is earning, on a weather-normalized basis using weather data for the
most recent ten calendar years, less than 50 basis points above the average of
the most recent commission-approved rate of return on equity for each
investor-owned transmission-only utility operating in ERCOT; or
(B) for an investor-owned transmission and
distribution utility, the utility's most recent earnings monitoring report, as
of 180 days before its scheduled filing date established by this section, filed
in compliance with commission rules and instructions or as adjusted by the
commission to conform with the rules and instructions, shows that it is
earning, on a weather-normalized basis using weather data for the most recent
ten calendar years, less than 50 basis points above the average of the most
recent commission-approved rate of return on equity for each investor-owned
transmission and distribution utility operating in ERCOT with at least 175,000
metered customers.
(3)
The commission may extend the scheduled filing deadline under paragraphs (1)
and (2) of this subsection for good cause shown or because of resource
constraints of the commission.
(4)
An investor-owned electric utility qualifying for an extension under paragraph
(2) of this subsection shall submit notice in the same project as the filing of
its most recent earnings monitoring report at least 180 days before the fourth
anniversary of the order in its most recent comprehensive rate proceeding or
other proceeding in which the commission approved a settlement agreement
reflecting a rate modification that allowed the electric utility to avoid the
filing of such a rate case.
(5)
Nothing in this section limits the commission's authority to initiate a rate
proceeding at any time under this title on the basis of other criteria that the
commission determines are in the public interest, including but not limited to
the information provided in an investor-owned electric utility's earnings
monitoring report.
(c) Transition issues for investor-owned electric utilities.
(1) If an investor-owned electric utility has
a comprehensive rate proceeding pending on the effective date of this rule, the
electric utility is required to file, after the commission's final order in
that pending proceeding, a comprehensive rate proceeding in accordance with
subsection (b) of this section. If the pending proceeding is withdrawn,
dismissed, or otherwise resolved without a final order, the investor-owned
electric utility shall be subject to the transition timelines in paragraph (2)
of this subsection unless the commission orders otherwise.
(2) All investor-owned electric utilities
shall make their initial filings under subsection (b) of this section on or
before the later of:
(A) 48 months from the
order in the investor-owned electric utility's last comprehensive rate
proceeding or other proceeding in which the commission approved a settlement
agreement reflecting a rate modification that allowed the electric utility to
avoid the filing of such a rate case; or
(B) the following dates:
(d) Filing requirements for non-investor-owned transmission service providers.
(1) After complying with applicable
provisions under subsection (e) of this section, and on an ongoing basis
thereafter, each non-investor-owned transmission service provider is required
to submit a complete application for either a comprehensive transmission cost
of service review under §
25.192(g) of
this title (relating to Transmission Service Rates) or an interim update under
§
25.192(h) of
this title within:
(A) 48 months of the date
of the provider's order for its most recently approved change in transmission
service rates under §
25.192 of this title if the
provider's approved wholesale transmission service revenue requirement is equal
to or greater than one percent of the amount of the total ERCOT wholesale
transmission charges determined by the commission in the most recent annual
update, as of the date of the provider's order, of the ERCOT four coincident
peak (4CP) demand in accordance with §
25.192(b) of
this title; or
(B) 96 months of the
date of the provider's order for its most recently approved change in
transmission service rates under §
25.192 of this title if the
provider's approved wholesale transmission service revenue requirement is less
than one percent of the amount of the total ERCOT wholesale transmission
charges determined by the commission in the most recent annual update, as of
the date of the provider's order, of the ERCOT four coincident peak (4CP)
demand in accordance with §
25.192(b) of
this title.
(2) Nothing
in this section limits the commission's authority to initiate a rate proceeding
at any time under this title on the basis of other criteria that the commission
determines are in the public interest, including but not limited to the
information provided in a non-investor-owned transmission service provider's
earnings monitoring report.
(e) Transition period for filings by non-investor-owned transmission service providers. As of the effective date of this subsection, for a non-investor-owned transmission service provider that has not since January 1, 2017, had a commission-approved change to its transmission service rates under § 25.192 of this title or does not have a rate proceeding pending under § 25.192 of this title, the following deadlines apply for submitting a complete application for either a comprehensive transmission cost of service review under § 25.192(g) of this title or a complete application for an interim update under § 25.192(h) of this title:
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