Functional Cost Separation of Electric Utilities in Texas
(May 1999), to determine transmission and distribution (T&D) rate
components. Section 25.227 also includes a methodology for determining competition
transition charges (CTC). The committee members agreed that interim rates
determined by the commission in a utility's UCOS case should not be subject
to true-up once final transmission and distribution rates are set. However,
the issue of true-up remains unresolved in the event a contingency plan is
employed. The commission requests comment on these options, and invites all
interested parties to suggest additional alternatives for commission consideration.
In addition to the two specific issues identified above, the commission
also invites comments from interested parties on all other provisions of the
proposed rule, subject to the limitations mentioned previously for committee
members, who are obligated to adhere to the committee ground rules. When commenting
on specific subsections of the proposed rule, parties are encouraged to describe
"best practice" examples of regulatory policies, and their rationale, that
have been proposed or implemented successfully in other states already undergoing
electric industry restructuring, if the parties believe that Texas would benefit
from application of the same policies. The commission is interested in receiving
only "leading edge" examples that are specifically related and directly applicable
to the Texas statute, rather than broad citations to other state restructuring
efforts.
Suzanne L. Bertin, Director, Office of Policy Development, has determined
that for each year of the first five-year period the proposed section is in
effect there will be no fiscal implications for state or local government
as a result of enforcing or administering the section.
Ms. Bertin has determined that for each year of the first five years the
proposed section is in effect the public benefit anticipated as a result of
enforcing the section will be consistency in utilities' implementation of
retail competition pilot projects, and an improved ability by the commission
to ensure a smooth transition to full retail customer choice. The pilot projects
may be used by the commission to evaluate the readiness of a power region
for retail competition, and will serve to encourage participation in a competitive
retail market and to inform customers about customer choice. There will be
no effect on small businesses or micro-businesses as a result of enforcing
this section. The economic cost to persons who are required to comply with
the section as proposed is expected to vary from person to person and cannot
be determined at this time. The public benefit anticipated as a result of
enforcing the section is expected to outweigh the cost to persons who are
required to comply with this section.
Ms. Bertin has also determined that for each year of the first five years
the proposed section is in effect there should be no effect on a local economy,
and therefore no local employment impact statement is required under Administrative
Procedure Act §2001.022.
The commission staff will conduct a public hearing on this rulemaking under
Government Code §2001.029 if a public hearing is requested by at least
25 persons, a governmental subdivision or agency, or an association having
at least 25 members.
Comments on the proposed new rule (16 copies) may be submitted to the Filing
Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue, PO
Box 13326, Austin, Texas 78711-3326, within 14 days after publication. Reply
comments may be submitted within 21 days after publication. The commission
invites specific comments regarding the costs associated with, and benefits
that will be gained by, implementation of the proposed section. The commission
will consider the costs and benefits in deciding whether to adopt the section.
All comments should refer to Project Number 21407.
This new section is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998 & Supplement
2000) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction, and specifically PURA §39.104, which states that the
commission shall require utilities to conduct pilot projects beginning June
1, 2001, and PURA §39.405, which sets forth additional requirements for
pilot projects conducted by utilities that are subject to the provisions of
PURA Chapter 39, Subchapter I.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
39.104 and 39.405.
§25.431.Retail Competition Pilot Projects.
(a)
Purpose. This section establishes the parameters under
which an electric utility shall offer customer choice for 5.0% of the load
in its Texas service area beginning on June 1, 2001, through the implementation
of retail competition pilot projects. The commission may use these pilot projects
to evaluate the ability of each power region to implement full customer choice
on January 1, 2002, including the operational readiness of support systems.
The pilot projects conducted under this section also will serve to encourage
participation in a competitive retail market and to inform customers about
customer choice.
(b)
Application.
(1)
This section applies to an electric utility as defined
in the Public Utility Regulatory Act (PURA) §31.002(6). An electric utility
exempt from PURA Chapter 39 in accordance with PURA §39.102(c) may conduct
a customer choice pilot project consistent with the requirements of this section
upon expiration of its exemption. A pilot project commencing before the adoption
of this section may fulfill portions of the requirements of this section,
as determined by the commission.
(2)
Other entities, including retail electric providers
(REPs) certified by the commission, and aggregators, power generation companies,
and power marketers registered with the commission may participate in the
pilot projects under the terms and conditions established by this section.
(c)
Intent of pilot projects. Pilot projects conducted under
this section are intended to implement customer choice for all applicable
customers in the same manner in which full customer choice will be offered
starting January 1, 2002, to the extent practicable. Unless determined otherwise
through a subsequent commission proceeding, or unless stated otherwise in
this section, all pilot project participants who are not retail customers
shall abide by all applicable commission rules, including but not limited
to, rules relating to customer protection and transmission and distribution
terms and conditions, and all rules of an independent organization as defined
in PURA §39.151.
(1)
Utility's obligation to serve. A utility shall continue
to provide electric service in accordance with PURA and the commission's substantive
rules to requesting customers in its certificated service area who do not
wish to take service from a REP.
(2)
Indemnification. Market participants, including utilities,
shall be held harmless for any damages resulting from any non-willful system
or process failures during the pilot project.
(3)
Performance standards.
(A)
Call center performance may be compromised by potential
large increases of customer inquiries generated because of the customer education
program and pilot project activities. For the period February 1, 2001 through
December 31, 2001, as applicable to each utility,
(i)
a reduction of five percentage points will be applied to
the percentage of calls to be answered in the allowable time; or
(ii)
5.0% of the calls with the longest wait time will be subtracted
from the calculation of average answer time.
(B)
An affected utility shall track and report such performance
during the pilot project in accordance with applicable commission rules and
orders. An affected utility does not waive any rights to request an adjustment
or waiver of performance standards directly affected by the customer education
program or pilot project.
(4)
Effect of pre-existing service agreements or
contracts.
(A)
To the extent a customer is otherwise eligible to participate
in a pilot project in accordance with this section, a utility shall not challenge
a customer's right to participate:
(i)
based upon a claimed failure to provide notice of cancellation
in accordance with the requirements of an existing service agreement, contract,
or tariff; or
(ii)
in the event that the customer's service agreement or
contract is beyond its primary term.
(B)
To the extent a customer is otherwise eligible to participate
in a pilot project in accordance with this section, customers in the primary
term of a service agreement or contract shall have the right to participate
in the pilot project subject to a challenge by the utility based upon a service
agreement or contractual issue other than failure to provide notice of cancellation
in compliance with an existing service agreement, contract, or tariff. The
procedure for any such challenge shall be as follows:
(i)
A utility contending that a customer that has been otherwise
selected to participate in the pilot project is not eligible to participate,
because of an existing service agreement or contract in its primary term,
shall inform the customer not later than seven days after the date scheduled
for the lottery for the applicable class in the event the class is oversubscribed
or the date the customer requests participation in the event the class is
undersubscribed.
(ii)
If the customer wishes to dispute the utility's contention,
the customer must, within seven days of receipt of the utility's notification,
so inform the utility. Pending resolution of the dispute, the utility shall
reserve a place for that customer on the participant list.
(iii)
The customer shall be entitled to participate in the
pilot project unless the utility informs the commission of the pilot project
eligibility dispute within seven days of receipt of the customer's notification
to the utility disputing the claim of ineligibility. Upon receipt by the commission
of timely notice of the dispute, the commission will resolve the dispute within
30 days after filing, and may do so administratively.
(iv)
If the commission determines that the customer is eligible
to participate, the customer will be included within the pilot project as
soon as practicable after the decision.
(5)
Right to withdraw from pilot project. For
any reason, and at a customer's request, the REP and the incumbent utility
shall restore a residential customer's account to pre-pilot project services
and rates. In the event a customer's REP ceases to do business in Texas during
the pilot project, the incumbent utility shall restore any customer's account
to pre-pilot project services and rates at the customer's request.
(6)
Application of renewable energy rule. To encourage
access to energy generated from renewable resources by customers participating
in the pilot projects, the renewable energy mandate provisions of §25.173
of this title (relating to Goal for Renewable Energy) will be extended on
a voluntary basis during the pilot projects to the competitive portion of
the market, with the following changes:
(A)
Each REP may acquire and retire renewable energy credits
(RECs) consistent with its share of retail kilowatt-hour sales during the
pilot period (June 1, 2001 through December 31, 2001), at a rate consistent
with REC obligations for the year 2002, and in the manner specified in §25.173(h)
of this title;
(B)
Each REC retired for the pilot period will reduce the REC
obligations of the REP for the year 2002 compliance period;
(C)
The voluntary settlement period for the pilot project renewable
energy program will commence January 1, 2002 and end March 31, 2002; and
(D)
Penalty provisions of §25.173(o) of this title are
not applicable.
(7)
End of pilot projects. The pilot projects will
end on December 31, 2001, unless determined otherwise by the commission in
accordance with subsection (j) of this section. For an electric utility exempt
from PURA Chapter 39 in accordance with PURA §39.102(c), the pilot project,
if undertaken, will begin and end on dates deemed reasonable by the commission.
A customer will remain with the REP by which he or she was served on the last
day of the pilot project until the customer or the REP elects otherwise. By
participating in the pilot project, a customer does not waive any right to
take service under the price to beat in accordance with PURA §39.202.
(d)
Definitions. The following terms when used in this section
shall have the following meanings unless the context clearly indicates otherwise:
(1)
Aggregation - includes the purchase of electricity from
a retail electric provider, a municipally owned utility, or an electric cooperative
by an electricity customer for its own use in multiple locations or as part
of a voluntary association of electricity customers. An electricity customer
may not avoid any nonbypassable charges or fees as a result of aggregating
its load.
(2)
Customer class - a grouping of customers, specific
to the pilot projects, for the purpose of allocating loads available for customer
choice during the pilot projects. The five customer classes used in the pilot
projects are:
(A)
Residential - all customers identified by an electric service
identifier (ESI) who purchase electricity under a utility's residential rate
schedule.
(B)
Non-residential, non-demand metered - all customers identified
by an ESI who:
(i)
do not purchase electricity under a utility's residential
rate schedule; and
(ii)
do not purchase electricity under a utility's municipal
or school rate schedule; and
(iii)
do not purchase electricity under a utility's rate schedule
that is based on metered or estimated demand during the twelve month period
ending December 31, 2000.
(C)
Industrial demand-metered - all customers identified by
an ESI who:
(i)
do not purchase electricity under a utility's residential
rate schedule; and
(ii)
purchase electricity under a utility's rate schedule that
is based on a metered demand; and
(iii)
purchase electricity under a utility's industrial rate
schedules (or are identified as industrial by the utility's rate code if
the utility does not have industrial rate schedules) or have filed a manufacturing
or processing tax exemption certificate with the utility.
(D)
Commercial and all other demand-metered - all customers
identified by an ESI who:
(i)
do not purchase electricity under a utility's residential
rate schedule; and
(ii)
do not come within the definition of the industrial demand
metered customer class; and
(iii)
purchase electricity under a utility's rate schedule
that is based on a metered demand.
(E)
Other - The other customer class is composed of all customers
identified by an ESI who:
(i)
purchase electricity under a utility's rate schedule that
is based on known usage patterns, not actual metered data (i.e., unmetered
loads); or
(ii)
purchase electricity under a utility's municipal or school
rate schedules; or
(iii)
purchase electricity under utility rate schedules applicable
to seasonal agricultural use, such as cotton gins, irrigation, or grain elevators.
(3)
Electric service identifier (ESI) - premise-based
identifier assigned to each electric service delivery point between a transmission
and distribution utility and an end-use load, which is used in the Texas customer
registration system and the Electric Reliability Council of Texas (ERCOT)
settlement system.
(4)
Lottery - fair process in which ESIs or aggregator
packets of ESIs are selected for participation in a pilot project by using
standard statistical methods for simple random sampling; each ESI or aggregator
packet of ESIs should have an equal chance of actually being selected.
(5)
Participation - occurs when the customer takes service
from a retail electric provider that is not the incumbent, integrated utility.
(e)
Requirements for participants that are not retail customers.
(1)
A REP must be certified by the commission pursuant to §25.107
of this title (relating to Certification of Retail Electric Providers) prior
to participating in pilot projects established pursuant to this section. An
affiliated REP shall not participate in the certificated service area of the
electric utility with which it is affiliated.
(2)
An aggregator, other than a self-aggregator, must
be registered with the commission pursuant to §25.111 of this title (relating
to Registration of Aggregators) prior to participating in pilot projects established
pursuant to this section.
(3)
A power generation company must be registered with
the commission pursuant to §25.109 of this title (relating to Registration
of Power Generation Companies) prior to participating in pilot projects established
pursuant to this section. A utility need not be registered as a power generation
company in order to generate power for sale during the pilot projects.
(4)
A power marketer must be registered with the commission
pursuant to §25.105 of this title (relating to Registration and Reporting
by Power Marketers) prior to participating in pilot projects established pursuant
to this section.
(5)
An independent transmission organization outside of
ERCOT may require a market participant to register with that organization
in order to become a wholesale buyer and seller of energy across the transmission
system.
(f)
Customer education. Customer education for the pilot projects
shall be conducted as part of the statewide customer education campaign for
introducing customer choice. Included in this campaign will be announcements
regarding the opportunity to participate in the pilot project and instructions
on obtaining further information about the pilot project. The commission shall
mail information written in English and in Spanish explaining the pilot project
to eligible non- residential customers no later than March 1, 2001, and to
eligible residential customers no later than April 15, 2001. The utility shall
provide the commission or its designee with customer information necessary
to implement this subsection. For purposes of this subsection, §25.272(g)(1)
of this title (relating to Code of Conduct for Electric Utilities and Their
Affiliates) does not apply with regard to proprietary customer information
released to the commission or its designee. The mailing may contain information
including, but not limited to:
(1)
a description of the pilot project;
(2)
the commission's central call center phone number
and Internet website operating to respond to customer questions and requests
for information;
(3)
a list of REPs certified as of a date certain, including
the telephone number and, if available, Internet website address for each
REP, and a statement disclosing that the REP list is continually updated and
how the customer can obtain an updated list; and
(4)
a clear, plain language description of customer choice
and the price to beat.
(g)
Customer choice during pilot projects. The following procedures
shall be used for customers to participate in the pilot projects within the
designated time periods for each applicable customer class.
(1)
Administration. For all customer classes, a REP shall submit
requests to switch customers participating in the pilot projects to the registration
agent beginning on May 31, 2001, and power delivery in conjunction with the
pilot projects may begin on June 1, 2001. For purposes of this section, any
electronic submission to the utility shall be executed using a standard electronic
data interface (EDI) protocol (814) to be included in the utility's compliance
filing.
(A)
Except where explicitly stated otherwise in this section,
a REP shall electronically submit switch requests to the utility for counting
and validation purposes prior to submitting such requests to the registration
agent. The utility shall maintain a weekly updated list of non-matching, rejected
ESIs on its pilot project Internet website.
(B)
Except for the industrial demand-metered class, there shall
be no out- of-cycle meter reading requests submitted for purposes of the pilot
project before July 1, 2001.
(C)
Members of the non-residential customer classes may elect
to waive the verification and recision process of the registration agent.
(D)
A participating customer shall have the right to change
from one REP to another REP in accordance with the switching procedures adopted
by the commission.
(E)
Beginning April 16, 2001, a REP shall electronically report
to the utility any switch request for a customer or an aggregation packet
with a listing of the ESIs to be switched to the REP as set forth in this
paragraph. After the utility confirms that the non-residential ESI or aggregation
packet is on the associated participant list, the utility shall submit the
ESI to the registration agent. The registration agent shall keep a record
of all the ESIs identified by the utility for participation in the pilot.
The REP shall be responsible for submitting to the registration agent the
ESIs associated with the switch request to serve. If the ESI identified by
the REP matches an ESI identified by the utility, then the registration agent
shall allow the registration process to continue.
(F)
Because the utility is assigned the responsibility to administer
the pilot project, except for complaints arising under §25.272 of this
title, which may be made in accordance with procedures established under that
section, a claim by any party of unreasonableness associated with the administration
of the pilot project will first be addressed by the pilot implementation working
group established by subsection (j)(4) of this section. If the complaint is
not resolved within ten working days of initial notification to the pilot
implementation working group, the complaint may be filed with the commission.
(2)
Residential customer class.
(A)
Determination of the 5.0% load available for customer choice.
For residential customers, the load available for customer choice shall be
determined by calculating 5.0% of the number of ESIs in this customer class
as of December 31, 2000. No later than January 31, 2001, the utility shall
determine the amount of load available for this customer class and shall make
that information publicly available through its pilot project Internet website.
For this customer class, 20% of the 5.0% load available for customer choice
shall be initially set aside for each customer class (hereafter referred to
as the 1.0% set-aside) for aggregated loads.
(B)
Initiating switching. Beginning February 15, 2001, a REP
may accept authorizations to switch providers from residential customers.
A REP shall notify the utility of such authorizations for residential customers.
(C)
Reaching the 5.0% load limit. For purposes of this subparagraph
the total number of ESIs eligible to switch determined in subparagraph (A)
of this paragraph, less the number of ESIs that have already authorized a
switch, shall be referred to as the amount of available load.
(i)
As each customer in this class authorizes a switch to another
provider, the amount of available load shall be decremented by one.
(ii)
When the amount of available load reaches zero, no more
switch authorizations shall be accepted.
(3)
Non-residential customer classes.
(A)
Determination of the 5.0% load available for customer choice.
No later than January 31, 2001, the utility shall make the results of the
following calculations for each non-residential customer class publicly available
through its pilot project Internet website. For each non-residential customer
class, 20% of the 5.0% load available for customer choice shall be initially
set aside for each customer class (hereafter referred to as the 1.0% set-aside)
for aggregated loads.
(i)
Non-residential, non-demand metered customers. For non-
residential, non-demand metered customers, the load available for customer
choice shall be determined by calculating 5.0% of the number of ESIs in that
customer class as of December 31, 2000.
(ii)
Industrial demand-metered customers; commercial and all
other demand-metered customers. For each of the demand metered customer classes,
the load available for customer choice shall be determined by calculating
5.0% of the sum of the kilowatts invoiced by the utility to all ESIs in each
customer class for meter reading dates during the utility's peak demand month
in the year 2000. In addition, the utility shall determine the individual
ESI load caps for each demand metered customer class by calculating 20% of
the load available for the pilot project in each demand- metered customer
class.
(iii)
Other customers as defined in subsection (d)(2)(E) of
this section. For all other customers, the load available for customer choice
shall be determined by calculating 5.0% of the sum of the kilowatt-hours for
which all ESIs in this customer class were invoiced by the utility during
the twelve month period ending December 31, 2000. In addition, the utility
shall determine the individual ESI load caps for this customer class by calculating
20% of the kilowatt-hours available for the pilot project in this customer
class.
(B)
Amount of available load. For purposes of this paragraph,
the total load available for customer choice determined in subparagraph (A)
of this paragraph, less the amount of the customer's ESI load used for calculation
in subparagraph (A) of this paragraph, shall be referred to as the amount
of available load for each non-residential customer class. For an ESI that
was not included in the calculation in subparagraph (A) of this paragraph,
hereinafter called a new ESI, the customer's ESI load shall be determined
as follows:
(i)
For the non-residential, non-demand metered class, a new
ESI shall count as one ESI against the total number of ESIs.
(ii)
For the demand-metered classes, the demand allocated to
a new ESI shall be 95% of the utility-estimated demand for the new ESI.
(iii)
For the other class as defined in subsection (d)(2)(E)
of this section, the energy allocated to a new ESI shall be 95% of the utility-estimated
annual kilowatt-hours for the new ESI.
(C)
Open interest period. Beginning February 15, 2001, and
continuing through March 15, 2001, interested customers may request the opportunity
to participate in a utility's pilot project by submitting to the utility through
its pilot project Internet website the account number and zip code information
necessary to determine the customer's ESI. An eligible ESI is one that does
not exceed the individual ESI load cap established in subparagraph (A) of
this paragraph. By March 21, 2001, the utility shall determine if the non-residential
customer classes are either oversubscribed or undersubscribed, including the
amount of load oversubscribed or undersubscribed, and shall make such information
publicly available through its pilot project Internet website.
(i)
Participant list. The utility shall create a list of customers
eligible to participate in the pilot project, referred to as the participant
list. The participant list shall include each ESI and related service address,
the name in which the customer is billed, and customer class as defined in
this section. No later than March 21, 2001, the utility shall make available
its integrated voice response (IVR) system or its pilot project Internet website
to allow a customer having an ESI in the lottery to determine whether its
ESI has been selected for the participant list. The participant list for each
customer class shall be provided to the commission no later than March 21,
2001.
(ii)
Oversubscription. On March 21, 2001, if a non-residential
customer class is oversubscribed, the utility shall use a lottery to develop
the participant list. As each ESI is selected through the lottery, the ESI's
load used for the calculation in subparagraph (A) of this paragraph shall
be subtracted from the total amount of load available for customer choice
as determined in subparagraph (A) of this paragraph. The ESI that causes the
4.0% load limit (i.e., the 5.0% load limit less the 1.0% set-aside) to be
reached shall be the final ESI selected through the lottery; the 4.0% limit
may be exceeded only for the purpose of accommodating the entire load associated
with the final ESI selected, except that such excess shall not cause the amount
of load available for customer choice to be greater than 4.1%. Once the 4.0%
load limit is reached, the selected ESIs shall be included on the participant
list.
(iii)
Undersubscription. If a non-residential customer class
is undersubscribed, all eligible ESIs submitted shall be included on the participant
list. Beginning March 21, 2001, any unsubscribed load will be the available
load available for subscription by customers in that customer class on a first
come, first served basis.
(D)
Negotiation period. Between March 21, 2001 and May 10,
2001, customers on the participant list may negotiate and contract with REPs.
A REP shall notify the utility of execution of a contract. If a customer has
not entered into a confirmed REP contract for a specific ESI by May 10, 2001,
that ESI shall be removed from the participant list, and the load associated
with that ESI shall be added to the amount of available load. On May 11, 2001,
the utility shall post, on its pilot project Internet website, a list of submitted
ESIs that do not match a customer on the participant list. REPs shall have
until May 14, 2001 to correct any ESI listed by the utility on May 11, 2001.
On May 17, 2001, the utility shall determine the amount of available load
for each non-residential customer class and shall make such determination
publicly available through its pilot project Internet website.
(E)
Monitoring and adjusting the amount of available load.
Following the negotiation period, participation shall be allowed on a first
come, first served basis.
(i)
As each non-residential customer in a class executes a
contract, the amount of available load for that class shall be decremented
by the amount of the customer's ESI load used for the calculation in subparagraph
(A) of this paragraph.
(ii)
The ESI that causes the amount of available load to reach
zero shall be the final ESI selected; the amount of available load may drop
below zero only for the purpose of accommodating the entire load associated
with the final ESI selected, subject to the limitations described in subparagraph
(C)(ii) of this paragraph.
(4)
Aggregated load set-aside. Customers participating
in customer choice may use aggregation to the extent they choose, and may
participate by self aggregation or multiple customer aggregation. For purposes
of pilot project administration, aggregators must submit to the utility their
groupings of utility account numbers and associated zip codes, or ESIs if
available, for participation in the pilot project subject to the 1.0% set-
aside. Such groupings (hereafter referred to as aggregation packets) shall
be submitted by customer class as defined in subsection (d) of this section
with a listing of utility account numbers and associated zip codes.
(A)
Set-aside cap. No single aggregation packet may contain
an ESI or ESIs that represent more than 20% of the 1.0% set-aside for that
customer class, with the exception of the residential class.
(B)
Registration dates. Aggregators may register non-residential
customer class aggregation packets, subject to the limitation in subparagraph
(A) of this paragraph, with the utility beginning February 15, 2001. Aggregators
may register residential aggregation packets beginning March 1, 2001.
(C)
Undersubscription for all non-residential customer classes.
If an aggregation packet contains non-residential ESIs from a class that is
undersubscribed as of April 2, 2001, then that aggregation packet shall have
a reserved allotment of the 1.0% set-aside until May 21, 2001. If by May 31,
2001, the 1.0% set-aside for aggregation in any non-residential class is undersubscribed,
then the utility shall determine the unused class capacity and add it to the
amount of available load for that class. No later than June 10, 2001, the
utility shall make the updated amount of available load publicly available
through the utility's pilot project Internet website.
(D)
Aggregation selection process for customer classes. The
eligibility for the 1.0% set-aside for each customer class shall be determined
as follows:
(i)
Residential customer class. Beginning on March 1, 2001,
an aggregator may accept authorizations from residential customers to switch
providers as a part of an aggregation packet. Aggregators shall submit aggregated
utility account numbers and associated service address zip codes to the utility
for tracking the 1.0% set-aside on a first come, first served basis. Aggregation
packets shall be accepted until either the 1.0% set-aside is reached or June
15, 2001, whichever comes first. If the 1.0% set-aside is not fully subscribed
by June 15, 2001, the utility shall determine the unused class capacity and
add that unused capacity to the total amount of available load for the residential
class.
(ii)
Non-residential customer classes. The initial set-aside
for each of the non-residential customer classes shall be 1.0% of the eligible
load by customer class. To be eligible for the aggregation participant list,
an aggregator must provide utility account number and service address zip
code information, or ESIs if available, to the utility by April 2, 2001.
(I)
Oversubscription for the non-residential, non- demand metered
customer class. If the total number of ESIs in aggregation packets submitted
for the pilot for a non-residential, non-demand class as of April 2, 2001
exceeds the 1.0% set-aside, then the utility shall use a lottery to determine
the aggregation participant list for this class. Aggregation packets eligible
for the aggregation participant list shall be selected by the utility by April
5, 2001. As each aggregation packet is selected through the lottery, the ESI
count shall be subtracted from the total number of ESI available for the 1.0%
set-aside. Aggregation packets shall be selected until none of the 1.0% set-aside
is left. If the last aggregation packet selected causes the 1.0% set-aside
to be exceeded, the selection of the final aggregation packet for this class
shall be done in accordance with subparagraph (E) of this paragraph. By April
6, 2001, the utility shall determine whether an aggregation packet has been
selected, and shall make such information publicly available through its pilot
project Internet website.
(II)
Oversubscription for the industrial demand- metered and
commercial and all other demand- metered classes. If the total combined load
of all aggregation packets submitted for each of the industrial demand-metered
and commercial and all other demand-metered classes exceeds the 1.0% set-
aside as of April 2, 2001, then the utility shall use a lottery to determine
the aggregation participant list for each customer class. Aggregation packets
eligible for the aggregation participant list shall be selected by the utility
by April 5, 2001. As an aggregator packet is selected through the lottery,
the demand for that ESI used to determine the available capacity for that
customer class shall be subtracted from the total demand amount available
for the 1.0% set-aside. Aggregation packets shall be selected until none of
the 1.0% set-aside is left. If the last aggregation packet selected causes
the 1.0% set-aside to be exceeded, the selection of the final aggregation
packet for the class shall be done in accordance with subparagraph (E) of
this paragraph. No later than April 6, 2001, the utility shall make the list
of ESIs eligible for the pilot project publicly available through its pilot
project Internet website.
(III)
Oversubscription for the other customer class as defined
in subsection (d)(2)(e) of this section. If the total combined load of all
aggregation packets submitted for the other class exceeds the 1.0% set- aside
as of April 2, 2001, then the utility shall use a lottery to determine the
aggregation participant list for this class. Aggregation packets eligible
for the aggregation participant list shall be selected by the utility by April
5, 2001. As each aggregation packet is selected through the lottery, the energy
in kilowatt-hours for that ESI used to determine the size of the customer
class shall be subtracted from the total amount of energy available for the
1.0% set-aside. Aggregation packets shall be selected until none of the 1.0%
set-aside is left. If the last aggregation packet selected causes the 1.0%
set- aside to be exceeded, the selection of the final aggregation packet for
the class shall be done in accordance with subparagraph (E) of this paragraph.
No later than April 6, 2001, the utility shall make the list of ESIs eligible
for the pilot project for the class publicly available through its pilot project
Internet website.
(E)
Non-residential customer classes oversubscription lottery
selection of last aggregation packet. If the final aggregation packet chosen
in a customer class lottery causes the 1.0% set-aside for that customer class
to be exceeded by more than 10%, that is if that aggregation packet increases
the size of the customer class to greater than 1.1%, that aggregation packet
shall be rejected and another aggregation packet shall be chosen if available.
If no other aggregation packet is available to fill each non-residential customer
class without exceeding the 10% overage limit, that remaining increment of
capacity set-aside will not be subscribed, but will be added to the amount
of available capacity for aggregation for that non-residential customer class
and will be available on a first come, first served basis. An aggregation
packet that does not exceed the 10% overage limit will be allowed. When the
results of the oversubscription lottery are posted by the utility, the utility
shall also make publicly available the information concerning this available
capacity through its pilot project Internet website.
(F)
Contract notification due date for non-residential customer
classes. By May 21, 2001, a REP must submit verification of executed supply
contracts with ESIs and associated zip code to the utility. Any ESI that has
not been validated by a REP by this date will relinquish its reserved allotment
on the aggregation participant list. The relinquished allotment will then
be available for aggregation in that customer class on a first come, first
served basis.
(G)
Notification of executed contract for non-residential customer
classes. The REP shall document the existence of an executed contract for
service by electronically submitting a list of ESIs representing executed
contracts to the utility. The utility may rely on receipt of this list as
proof of the existence of an executed contract. The REP shall file a signed
affidavit with the commission attesting to the accuracy of the ESIs on the
list.
(H)
Electronic submissions by aggregators. All submittals required
by this section by aggregators to utilities shall be made in electronic format
using a Microsoft Excel spreadsheet using a spreadsheet template posted on
the utilities' pilot project Internet website. Utilities will post templates
by January 31, 2001.
(I)
New ESIs. For an ESI that was not included in the calculation
in paragraph (3)(A) of this subsection, hereinafter called a new ESI, the
customer's ESI load shall be determined as follows:
(i)
For the non-residential non-demand metered classes, a new
ESI shall count as one ESI against the total number of ESIs.
(ii)
For the demand-metered classes, the demand allocated to
a new ESI shall be 95% of the utility-estimated demand for the new ESI.
(iii)
For the other class as defined in subsection (d)(2)(E)
of this section, the energy allocated to a new ESI shall be 95% of the utility-estimated
annual kilowatt-hours for the new ESI.
(h)
Transmission and distribution rates and tariffs.
(1)
Utilities within ERCOT. In connection with a utility's
pilot project, the utility shall provide transmission service and distribution
service in accordance with the rates for non-bypassable delivery charges approved
by the commission, on an interim basis for application during the utility's
pilot project, in the utility's unbundled cost of service case filed pursuant
to PURA §39.201. Notwithstanding the provisions of §22.125 of this
title (relating to Interim Relief), such interim rates shall not be subject
to surcharge or refund if the rates ultimately established differ from the
interim rates.
(2)
Utilities outside of ERCOT.
(A)
Jurisdiction of other regulatory bodies. Processes utilized
by non- ERCOT participants shall support the settlement of traditional wholesale
markets and shall conform to all Federal Energy Regulatory Commission (FERC)
rules and regulations.
(B)
Transmission service. In connection with a utility's pilot
project, the utility shall provide transmission service in accordance with
the rates and delivery charges approved by the FERC. A utility in transition
to an independent transmission company (ITC) model shall maintain on file
with the commission a copy of its current FERC-approved open access transmission
tariff (OATT), as well as any proposed amendments to the OATT submitted to
FERC.
(C)
Distribution service. In connection with a utility's pilot
project, the utility shall provide distribution service in accordance with
the rates for non-bypassable delivery charges approved by the commission,
on an interim basis for application during the utility's pilot project, in
the utility's unbundled cost of service case filed pursuant to PURA §39.201.
Notwithstanding the provisions of §22.125 of this title, such interim
rates shall not be subject to surcharge or refund if the rates ultimately
established differ from the interim rates.
(3)
Approval of tariffs. Tariffs implementing pilot
project rates must be filed within ten days following the commission's determination
of those rates. The commission shall approve such tariffs by May 31, 2001,
and may do so administratively.
(i)
Billing requirements.
(1)
A utility shall bill a customer's REP for non-bypassable
delivery charges in accordance with the tariffs established pursuant to subsection
(h) of this section. The REP must pay these charges.
(2)
A REP shall be responsible for ensuring that its retail
customers are billed for electric service provided. A utility may bill retail
customers at the request of a REP, provided that any such billing service
shall be offered by the utility on comparable terms and conditions for any
requesting REP.
(j)
Evaluation of the pilot projects by the commission; reporting.
The commission shall evaluate the pilot projects and the operational readiness
of each power region, including its support systems, for customer choice.
(1)
Evaluation criteria.
(A)
Criteria for determining the readiness of a power region
for customer choice may include the following:
(i)
whether a power region's operational support systems were
tested, and any problems that surfaced during the pilot project were adequately
rectified;
(ii)
whether electric system reliability was significantly
affected in an adverse way; and
(iii)
any other criteria the commission determines appropriate.
(B)
Criteria for determining whether commission rules may need
modifications or whether certain aspects of retail competition may require
more detailed monitoring by the commission may include the following:
(i)
whether participants in the pilot projects represented
a broad base of customers of diverse demographic characteristics;
(ii)
whether customers were aware of their rights and responsibilities
with respect to customer choice, and whether such awareness increased for
customers as a whole over the duration of the pilot projects;
(iii)
whether a broad range of electric services and products
were offered;
(iv)
whether the quality of customer service with respect to
retail customers was affected; and
(v)
any other criteria the commission determines appropriate.
(2)
Information used for evaluation of pilot
projects. Evaluation of the pilot projects shall be based on information including,
but not limited to:
(A)
reports filed in accordance with paragraph (3) of this
subsection;
(B)
surveys of retail customers conducted in connection with
the commission's customer education program; and
(C)
the quantity and nature of complaints or inquiries regarding
the pilot project received by the commission's Office of Customer Protection.
(3)
Reporting by market participants and independent
organizations. Each market participant and independent organization shall
file two status reports with the commission under a single project number
as designated by the commission's central records division. The first status
report shall be filed on November 15, 2001, and the second no later than 30
days following the conclusion of the pilot project. In addition, a utility
subject to PURA Chapter 39, Subchapter I, shall file semi-annual reports with
the commission for the duration of its pilot project to permit the commission
to monitor whether proportional representation is achieved in accordance with
subsection (l)(3)(B) of this section.
(A)
Reporting by utilities. Each status report from a utility
shall include:
(i)
The percent of load switched by month and cumulatively,
for each customer class as defined in this section, including supporting data;
(ii)
The number of customers that have withdrawn from the pilot
project, by customer class;
(iii)
A summary of any technical problems encountered during
the reporting period, including resolutions or proposed resolutions, as appropriate,
and supporting data;
(iv)
A summary of all complaints related to the pilot project
received by the utility during the reporting period, including a description
of the resolution of the complaints;
(v)
For a utility in transition to an ITC model, a progress
report on the transition to the ITC, including any updates to the initial
compliance filing; and
(vi)
Any other information the utility believes will assist
the commission in evaluating the pilot projects and the readiness of a power
region for implementation of full customer choice.
(B)
Reporting by REPs. Each status report from a REP shall
include:
(i)
A summary of any technical problems encountered during
the reporting period, including resolutions or proposed resolutions, as appropriate,
and supporting data;
(ii)
A summary of all complaints related to the pilot project
received by the REP during the reporting period, including a description of
the resolution of the complaints; and
(iii)
Any other information the REP believes will assist the
commission in evaluating the pilot projects and the readiness of a power region
for implementation of full customer choice.
(C)
Reporting by an independent organization. Each status report
from an independent organization shall include:
(i)
Data from the registration agent regarding the average
time elapsed between a switch request and the time the switch became effective;
(ii)
Data from the registration agent, categorized by residential
and non-residential customers, listing the total number of switch requests
for each month, as well as the average number of switch requests per day for
each month, and the total number of switch requests by zip code;
(iii)
Data from the registration agent regarding the number
of rejected switch requests resulting from the anti-slamming verification
process;
(iv)
A summary of all complaints, categorized by REP and by
utility, related to the pilot project captured in the registration agent's
systems during the reporting period, including a description of the resolution
of the complaints;
(v)
A summary from the registration agent and the independent
organization, as applicable, of any technical problems encountered during
the reporting period, including resolutions or proposed resolutions, as appropriate,
and supporting data; and
(vi)
An analysis by the independent transmission organization
of system reliability during the pilot projects.
(D)
Other reporting.
(i)
To the extent low-income rate discounts are offered in
accordance with PURA and commission rules, the number of customers receiving
a low-income rate discount shall be reported to the commission by the administrator
of the system benefit fund.
(ii)
At any time, a pilot project participant who is neither
a utility nor a REP may provide the commission with any information the participant
believes will assist the commission in evaluating the pilot projects and the
readiness of a power region for implementation of full customer choice.
(4)
Pilot implementation working group. The
commission will establish a pilot implementation working group to oversee
the pilot projects. The commission or its designee, based upon a recommendation
of the pilot implementation working group, may revise the operational requirements
of the pilot projects in order to resolve technical problems encountered by
market participants.
(5)
Extension of pilot projects. Should the commission
determine that it is necessary to delay competition and extend the pilot projects,
it must make such determination by December 31, 2001, except as otherwise
authorized by PURA §39.405.
(k)
Pilot project administration and recovery of associated
costs.
(1)
Each utility shall be responsible for administering the
pilot project for its service area. Costs incurred by the utility to administer
the pilot project may include expenses for required communications, third-party
outsourcing for any or all administration tasks, enrollment process, or lottery
administration.
(2)
The utility may request recovery from the commission
of pilot project administrative costs through:
(A)
inclusion in the annual report filed pursuant to PURA §39.257;
or
(B)
deferral to future retail transmission or distribution
rates; or
(C)
deferral to a proceeding in which the consideration of
such costs was pending as of May 1, 2000.
(3)
Parties do not waive the right to challenge the
utility's ability to seek cost recovery for costs associated with the pilot
projects at the time that such relief is sought. In addition, nothing in this
section shall be construed as resolving the legal issue of whether utilities
may recover costs associated with the pilot projects.
(l)
Compliance filings.
(1)
Timing and review. Each utility shall file a pilot project
implementation plan with the commission under a single project number as designated
by the commission's central records division. An implementation plan filed
under this section shall be reviewed administratively to determine whether
it is consistent with the principles, instructions and requirements set forth
in this section.
(A)
Each utility shall file its implementation plan within
45 days of the commission's adoption of this section. Such filings do not
constitute contested case proceedings, but are designed to describe the particular
application of this section to the filing utility for the purpose of providing
information to the public and the commission.
(B)
No later than 15 days after filing, interested parties
may file comments on the implementation plan.
(C)
No later than 25 days after filing, commission staff may
file a recommendation concerning the implementation plan.
(D)
Unless the commission or presiding officer determines otherwise,
an implementation plan filed under this section shall be deemed approved on
the thirtieth day after filing. If the implementation plan is not approved,
the utility shall resubmit its plan following consultation with commission
staff under a deadline established by the presiding officer.
(2)
Content. The compliance filing shall address
each provision of this section with a brief narrative explaining how the utility
intends to implement that provision, including the utility's pilot project
Internet website address and other contact information, as applicable. Numerical
and formulaic data shall also be provided where applicable. Specifically,
the compliance filing shall detail the calculation of the 5.0% load available
for each customer class, including the 1.0% set-aside, and demonstrate the
calculation with sample data. The final calculations containing actual data
shall be filed with the commission by January 31, 2001.
(3)
Additional requirements for non-ERCOT utilities.
(A)
A utility subject to PURA Chapter 39, Subchapter I, shall
include in its transition plan filed pursuant to PURA §39.402, a plan
for extending its pilot project beyond January 1, 2002. The plan for extension
of the pilot project shall contain:
(i)
The utility's proposed increase(s) in pilot project participation
beyond 5.0%, and proposed timing for such increase(s), including supporting
data and workpapers; and
(ii)
A report to the commission on market conditions in the
utility's power region, including an analysis of the level of competition
that the region can support and all relevant data and workpapers.
(B)
A utility subject to PURA Chapter 39, Subchapter I, shall
include in its compliance filing, a plan to ensure proportional representation
in its pilot project between customers receiving service from the utility
in an area that is certificated solely to the utility and those customers
of the utility located in multiply certificated areas.
(C)
A utility in transition to an ITC model shall include in
its compliance filing:
(i)
a narrative of how its plan for transition to an ITC is
expected to affect the pilot project, including relevant supporting data and
workpapers; and
(ii)
an explanation of any requirements of market participants
that are unique to its service area (e.g, registration with ITC, data aggregation
requirements).
This agency hereby certifies that the proposal
has been reviewed by legal counsel and found to be within the agency's legal
authority to adopt.
Filed with the Office of
the Secretary of State, on June 1, 2000.
TRD-200003882
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 16, 2000
For further information, please call: (512) 936-7308