Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter J. COSTS, RATES, AND TARIFFS
1.
RETAIL RATES
16 TAC §25.242
The Public Utility Commission of Texas (commission) proposes
an amendment to §25.242 relating to Arrangements Between Qualifying Facilities
and Electric Utilities. The proposed amendment addresses the sale and purchase
of electricity between qualifying facilities (QFs) and retail electric providers
(REPs) with the price to beat obligation (PTB REPs) and REPs serving as providers
of last resort (POLRs) in the restructured electric market that takes effect
on January 1, 2002. The amendment retains the applicability of the rule pertaining
to arrangements between qualifying facilities and electric utilities in the
parts of Texas in which the electric market has not yet been restructured.
This amendment is proposed in commission Project Number 24365.
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 which are
specifically related and directly applicable to the Texas statute, rather
than broad citations to other state restructuring efforts.
Gerardo Huerta, Attorney, Legal Division, 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.
Mr. Huerta 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 compliance with federal law. Furthermore, there
will be no adverse economic effect on small businesses or micro-businesses
as a result of enforcing this section. There is no anticipated economic cost
to persons who are required to comply with the section as proposed.
Mr. Huerta 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 Texas
Government Code §2001.022.
Comments on the proposed amendment (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 21 days after publication.
Reply comments may be submitted within 30 days after publication. Comments
should be organized in a manner consistent with the organization of the proposed
rule. 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 24365.
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code, Annotated, Title II, §§11.002, 14.002,
and 35.061 (Vernon 1998 & Supplement 2002) (PURA); 16 U.S.C. §824a-3(f)
(2000); and 18 C.F.R. Part 292 (2001). Section 11.002 states that the purpose
of the Public Utility Regulatory Act is to grant the commission authority
to make and enforce rules necessary to protect customers of electric services
consistent with the public interest; §14.002 requires the commission
to adopt and enforce rules reasonably required in the exercise of its powers
and jurisdiction; §35.061 requires the commission to adopt and enforce
rules to encourage the economical production of electric energy by qualifying
facilities; and 16 U.S.C. §824a-3(f) (2000) and 18 C.F.R. Part 292 (2001),
which require state regulatory authorities to implement federal Public Utility
Regulatory Policies Act regulations addressing arrangements between certain
entities that sell electric energy.
Cross reference to statutes: Public Utility Regulatory Act §§11.002,
14.002, and 35.061; 16 U.S.C. §824a-3; and 18 C.F.R. Part 292.
§25.242.Arrangements Between Qualifying Facilities and Electric Utilities.
(a)
Purpose. The purpose of this section is to regulate the
arrangements between qualifying facilities
, retail electric providers
with the price to beat obligation (PTB REPs), providers of last resort (POLRs),
and electric utilities as required by federal and state law in a manner
consistent with the development of a competitive wholesale power market.
(b)
Application. This section shall apply to all
PTB REPs,
POLRs, transmission and distribution utilities (TDUs), and
electric
utilities in Texas. This section shall not apply to municipal utilities
, river authorities, or electric cooperatives
.
(c)
Definitions--The following words and terms, when used in
this section, shall have the following meanings, unless the context clearly
indicates otherwise:
(1)
Avoided costs--The incremental costs to
a PTB REP,
POLR, or
[
(2)
Back-up power--Electric energy or capacity supplied [
(3)
(No change.)
(4)
Electric utility--For purposes
of this section, an integrated investor-owned utility that has not unbundled
in accordance with PURA §39.051.
(5)
[
(6)
[
(7)
[
(8)
Market price--The price of
power purchases foregone by a PTB REP or POLR due to the purchase from a qualifying
facility.
(9)
[
(10)
[
(A)
The qualifying facility is generating an amount of capacity
that is less than the customer's load. The customer is therefore a net consumer.
(B)
The qualifying facility is generating an amount of capacity
that is more than the customer's load. The customer is therefore a net producer.
(C)
The qualifying facility is generating an amount of capacity
that is equal to the customer's load. The customer is therefore neither a
net producer nor a net consumer.
(11)
[
(12)
[
(13)
[
(A)
reliability of generation and interconnection;
(B)
forced outage rate;
(C)
availability during peak periods;
(D)
the terms of any contract or other legally enforceable
obligation, including, but not limited to, the duration of the obligation,
performance guarantees, termination notice requirements, and sanctions for
noncompliance;
(E)
maintenance scheduling;
(F)
availability for system emergencies, including the ability
to separate the qualifying facility's load from its generation;
(G)
the individual and aggregate value of energy and capacity
from qualifying facilities on the electric utility's system;
(H)
other dispatch characteristics;
(I)
reliability of primary and secondary fuel supplies used
by the qualifying facility; and
(J)
impact on utility system stability.
(14)
Retail electric provider with
the price to beat obligation (PTB REP)--A REP that makes available a PTB pursuant
to Public Utility Regulatory Act (PURA) §39.202.
(15)
[
(16)
[
(17)
[
(18)
Transmission and distribution
utility (TDU)--As defined in §25.5 of this title (relating to Definitions).
(d)
Negotiation and filing of rates.
(1)
Negotiated rates or terms. Nothing in this section shall:
(A)
limit the authority of any
PTB REP, POLR, or
electric utility or any qualifying facility to agree to a rate for any purchase,
or terms or conditions relating to any purchase, which differs from the rate
or terms or conditions that would otherwise be required by this section; or
(B)
affect the validity of any contract entered into between
a qualifying facility and
a PTB REP, POLR, or
[
(2)
(No change.)
(e)
(No change.)
(f)
PTB REP, POLR, and electric
[
(1)
Obligation to purchase from qualifying facilities.
(A)
In accordance with
this subsection and subsection
[
(i)
directly to the
PTB REP, POLR, or
electric utility;
or
(ii)
indirectly to the
PTB REP, POLR, or
electric
utility in accordance with paragraph (4) of this subsection.
(B)
(No change.)
[
(2)
Obligation to sell to qualifying facilities. In accordance
with subsection (k) of this section, each electric utility shall sell any
energy and capacity requested to any qualifying facility located within the
electric utility's service area.
Each PTB REP and POLR shall also sell
any energy requested to any qualifying facility; however, those sales shall
be at market based rates. Nothing shall restrict the ability of any qualifying
facility to purchase energy from any REP.
(3)
Obligation to interconnect. The obligation of electric
utilities
and TDUs
to interconnect with qualifying facilities is
set forth in Subchapter I of this chapter (relating to Transmission and Distribution)
with respect to qualifying facilities seeking to interconnect with TDUs in
the Electric Reliability Council of Texas (ERCOT), and in the respective electric
utility's Open Access Transmission Tariff for electric utilities in non-ERCOT
power regions.
(4)
(No change.)
(5)
PTB REP and POLR scheduling
with qualifying facilities. A PTB REP or POLR shall use dynamic resource scheduling
or responsibility transfer in ERCOT with any qualifying facility that requests
such scheduling, as permitted by ERCOT. The PTB REP's or POLR's cost of using
dynamic resource scheduling or responsibility transfer attributable solely
to purchases from qualifying facilities shall be charged to qualifying facilities
that use such scheduling. If a qualifying facility uses static scheduling,
the qualifying facility shall bear the costs for any imbalances resulting
from the qualifying facility's failure to submit a schedule or to comply with
the schedule.
(g)
Rates for purchases from a qualifying facility.
(1)
Rates for purchases of energy and capacity from any qualifying
facility shall be just and reasonable to the customers of the electric utility
, PTB REP, and POLR,
and in the public interest, and shall not discriminate
against qualifying cogeneration and small power production facilities.
(2)
Rates for purchases of energy and capacity from any qualifying
facility shall not exceed avoided cost. [
(h)
(No change.)
(i)
Tariffs setting out the methodologies for purchases of
nonfirm power from a qualifying facility. Tariffs setting out the methodologies
for purchases of nonfirm power from a qualifying facility shall be filed with
the commission based on one of the following [
(1)
Rates for purchases of nonfirm power may, by agreement
of both the
electric
utility and the qualifying facility, be based
on the utility's average avoided energy costs. Administrative, billing, and
metering costs shall be recovered through a monthly customer charge to the
qualifying facility.
(2)
Rates for purchases of nonfirm
power may, by agreement of both a PTB REP or POLR and the qualifying facility,
be based on average market price over the period of sale by the qualifying
facility. Administrative, billing, and metering costs shall be recovered through
a monthly customer charge to the qualifying facility. Such agreements may
include provisions to prevent the potential for arbitrage between this paragraph
and paragraph (4) of this subsection.
(3)
[
(A)
The following factors should be considered in the calculation
of the cost of decremental energy:
(i)
fuel costs;
(ii)
variable operating and maintenance costs;
(iii)
line losses;
(iv)
heat rates;
(v)
cost of purchases from other sources;
(vi)
other energy-related costs;
(vii)
capacity costs, if, as a class, qualifying facilities
providing nonfirm energy offer some predictable capacity; and
(viii)
for short term energy purchases, the time and quantity
of energy furnished.
(B)
If practical, the avoided cost should be determined by
calculating by time period, using the utility's economic dispatch model (or
comparable methodology), the difference between the cost of the total energy
furnished by both the qualifying facility and the utility, computed as though
the energy furnished by the qualifying facility had been furnished by the
utility, and the actual cost of energy furnished by the utility.
(C)
The economic dispatch model should take into consideration
the following factors:
(i)
fuel costs;
(ii)
variable operating and maintenance costs;
(iii)
line losses;
(iv)
heat rates;
(v)
purchased power opportunity;
(vi)
system stability; and
(vii)
operating characteristics.
(D)
Time periods should be hourly if the utility has an automated
economic dispatch model available; otherwise the shortest reasonable time
period for which costs can be determined should be used.
(E)
Administrative, billing, and metering costs shall be recovered
through a monthly customer charge to the qualifying facility.
(4)
Rates for purchases of nonfirm
power may, at the option of the qualifying facility, be based on the market
price of energy purchases that would have been incurred by the PTB REP or
POLR had the qualifying facility not been in operation. Administrative, billing,
and metering costs shall be recovered through a monthly customer charge to
the qualifying facility.
(5)
PTB REPs and POLRs shall file
with the commission a description of the methodology that will be used in
calculating these rates for purchase.
(j)
Periods during which purchases not required.
(1)
Any
PTB REP, POLR, or
electric utility which
gives notice to each affected qualifying facility in time for the qualifying
facility to cease delivery of energy or capacity to the
PTB REP, POLR,
or
electric utility will not be required to purchase electric energy
or capacity during any period during which, due to operational circumstances,
including resource ramp rate limitations that could cause imbalances,
purchases from qualifying facilities will result in costs greater than those
which the utility would incur if it did not make such purchases, but instead
generated an equivalent amount of energy itself, provided, however, that this
subsection does not override contractual obligations of the
PTB REP,
POLR, or
electric utility to purchase from a qualifying facility.
(2)
Any
PTB REP, POLR, or
electric utility which
fails to give notice to each affected qualifying facility in time for the
qualifying facility to cease the delivery of energy or capacity to the
PTB REP, POLR, or
electric utility will be required to pay the same
rate for such purchase of energy or capacity as would be required had the
period of greater costs not occurred.
(3)
A claim by
PTB REP, POLR, or
an electric utility
that such a period has occurred or will occur is subject to such verification
by the commission either before or after the occurrence.
(k)
(No change.)
(l)
Interconnection costs. The establishment and reimbursement
of interconnection costs are set forth in Subchapter I of this chapter
with respect to qualifying facilities seeking to interconnect with TDUs in
ERCOT, and in the respective utility's Open Access Transmission Tariff for
electric utilities in non-ERCOT power regions
.
(m)
(No change.)
(n)
Enforcement. A proceeding to resolve a dispute between
an electric utility
, PTB REP, or POLR,
and a qualifying facility
arising under this section may be instituted by filing of a petition with
the commission. Electric utilities
, PTB REPs, POLRs,
and qualifying
facilities are encouraged to engage in alternative dispute resolution prior
to the filing of a complaint.
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 December 21, 2001.
TRD-200108205
Rhonda G. Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: February 3, 2002
For further information, please call: (512) 936-7308
Subchapter P. TEXAS UNIVERSAL SERVICE FUND
16 TAC §26.421, §26.422
The Public Utility Commission of Texas (commission) proposes
new §26.421, relating to Designation of Eligible Telecommunication Provider
to Provide Service to Uncertificated Areas and new §26.422, relating
to Subsequent Petitions for Service in Uncertificated Areas. These sections
implement House Bill 2388, 77th Legislature (HB 2388) which authorizes the
commission to designate a telecommunications provider to provide voice-grade
services to permanent residential or business premises that are not included
within the certificated area of a holder of certificate of convenience and
necessity and for the reimbursement of costs from the Texas Universal Service
Fund (TUSF). HB 2388 amends the Public Utility Regulatory Act, Texas Utilities
Code Annotated (Vernon 1998, Supplement 2002) (PURA) §§51.002, 56.001,
56.021 and 56.023 and adds new Chapter 56, Subchapter F. Project Number 24519
is assigned to this proceeding.
The proposed new sections outline the procedures for residents or businesses
in uncertificated areas to petition the commission for voice-grade telecommunications
services. Section 26.421 explains the factors that the commission would consider
in approving or denying the petition, and if necessary, the procedures for
conducting an evidentiary hearing. Section 26.421 also describes the method
for recovery of actual construction costs and monthly recurring costs from
the Texas Universal Service Fund (TUSF). In addition, §26.421 provides
guidelines to the commission on issuing an order granting or denying a petition.
Proposed §26.422 provides guidelines for petitions requesting service
for premises within a reasonable proximity to premises that were the subject
of an earlier approved petition. Section 26.422 also describes the method
for cost recovery relating to later filed petitions.
Ms. Jennifer Fagan, Attorney, Legal Division and Mr. Elango Rajagopal,
Policy Analyst, Telecommunications Division, have determined that for each
year of the first five-year period the proposed sections are in effect, there
will be no fiscal implications for state or local governments as a result
of enforcing or administering the sections.
Ms. Fagan and Mr. Rajagopal have determined that for each year of the first
five years the proposed sections are in effect the public benefit anticipated
as a result of enforcing the sections will be that persons previously unable
to obtain voice-grade telecommunications service because they are located
outside the certificated area of any local exchange carrier, will be afforded
an opportunity to obtain such services. There will be no effect on small businesses
or micro-businesses as a result of enforcing these sections. There is no anticipated
economic cost to persons who are required to comply with these sections as
proposed.
Ms. Fagan and Mr. Rajagopal have also determined that for each year of
the first five years the proposed sections are in effect, there should be
no effect on a local economy. Therefore, no local employment impact statement
is required under Administrative Procedure Act, §2001.022.
Written comments on the proposed rules (16 copies) may be submitted to
the Filing Clerk, Public Utility Commission of Texas, 1701 North Congress
Avenue, P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
Reply comments may be submitted within 45 days after publication. The commission
invites comments regarding the costs associated with, and benefits that will
be gained by, implementation of the proposed rules. The commission will consider
the costs and benefits in deciding whether to adopt these sections. All comments
should refer to Project Number 24519.
The commission staff will conduct a public hearing on this rulemaking,
pursuant to Texas Government Code §2001.029, at the commission's offices
located in the William B. Travis Building, 1701 North Congress Avenue, Austin,
Texas 78701 on Tuesday, February 12, 2002, at 1:30 p.m.
These new sections are proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated, §14.002 (Vernon 1998, Supplement
2002), which provides the Public Utility Commission with the authority to
make and enforce rules reasonably required in the exercise of its powers and
jurisdiction. These sections are also proposed under §56.202, which grants
the commission the authority to designate a telecommunications provider to
provide services in uncertificated areas of the state.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
56.001, 56.021, 56.023, and 56.201-56.213.
§26.421.Designation of Eligible Telecommunication Provider to Provide Service to Uncertificated Areas.
(a)
Purpose. The provisions of this section establish the procedures
for the commission to designate an eligible telecommunications provider (ETP)
to provide voice-grade services to permanent residential or business premises
that are not included within the certificated area of a holder of a certificate
of convenience and necessity (CCN), and for the reimbursement of costs from
the Texas Universal Service Fund (TUSF).
(b)
Definitions. The following words and terms, when used in
this section, shall have the following meaning unless the context clearly
indicates otherwise:
(1)
Designated provider--A telecommunications provider designated
by the commission to provide services to premises located within an uncertificated
area
(2)
Eligible telecommunication provider (ETP)--A telecommunications
provider designated by the commission pursuant to §26.417 of this title
(relating to Designation as Eligible Telecommunications Providers to Receive
Texas Universal Service Funds (TUSF)).
(3)
Permanent residential or business premises--A premises
that has permanent facilities for water, wastewater, and electricity.
(4)
Preferred provider--A designated provider for any permanent
residential or business premises within reasonable proximity to those petitioning
premises for later petitions filed under §26.422 of this title (relating
to Subsequent Petitions for Service in Uncertificated Areas).
(c)
Application. This section applies to telecommunications
providers that have been designated ETPs by the commission pursuant to §26.417
of this title.
(d)
Petition for service.
(1)
Eligibility. Persons residing in permanent residential
premises or owners of permanent residential or business premises that are
not included within the certificated area of a holder of a CCN may petition
the commission to designate an ETP to provide to those premises voice-grade
services supported by state and federal universal service support mechanisms.
(2)
Contents of petition. A petition for designation of an
ETP must:
(A)
State with reasonable particularity the locations of the
permanent residential or business premises for which the petitioner(s) are
requesting service;
(B)
Establish that the premises are within reasonable proximity
to one another so that the petitioners possess a sufficient community of interest;
(C)
Nominate as potential providers of service, not more than
five telecommunications providers serving territory that is contiguous to
the location of the permanent residential or business premises using wireless
or wireline facilities, resale, or unbundled network elements; and
(D)
Include as an attachment or an appendix, documentation
indicating the required residence or ownership, such as a state-issued license
or identification, tax records, deeds, or voter registration materials.
(3)
Eligibility of petitioner(s). Except as provided by paragraph
(4) of this subsection, the petition must be signed by at least five persons
who:
(A)
Are not members of the same household;
(B)
Reside in the permanent residential premises or are the
owners of the permanent residential or business premises for which service
is sought;
(C)
Desire service to those premises;
(D)
Commit to pay the aid to construction charges for service
to those premises as determined by the commission; and
(E)
Commit to enter into an assignable agreement for subscription
to basic local service to the premises for a period of time determined by
the commission.
(4)
Number of petitioners. The commission may accept a petition
that is signed by fewer than five persons if the petitioner(s) provides an
affidavit stating that the petitioner(s) has taken all reasonable steps to
secure the signatures of the residents of permanent residential premises or
the owners of permanent residential or business premises within reasonably
close proximity to the petitioner's premises who are not receiving telephone
service when the petition is filed and who want telephone service initiated.
(5)
Form. The petitioner(s) shall file the petition using the
commission-approved forms.
(e)
Completeness of petition.
(1)
Commission action. Upon receipt of a petition, the commission
shall review the petition for completeness. Within 15 working days from the
date of receipt of the petition, the commission shall determine if the petition
is complete and has been filed consistent with subsection (d) of this section.
(2)
Petition complete. If the commission determines the petition
is complete, the commission will send a notice of completeness to the petitioner(s)
and to all telecommunications providers identified in the petition. In its
notice, the commission shall seek volunteers to provide telecommunications
services in the permanent residential or business premises. The commission
shall also include with its notice a copy of the petition.
(3)
Petition denied. If a petition is denied, the commission
shall send a notice of denial explaining the reason(s) for denial to the petitioner(s).
(f)
Responding to notice of approval.
(1)
Response. Telecommunication providers shall respond to
the commission's notice of approval and request for volunteers within 21 business
days after receipt of the notice. A provider may respond by:
(A)
Stating that it is not eligible to be designated to serve
the premises under this section;
(B)
Volunteering to provide service to the premises; or
(C)
Refusing to provide service to the premises.
(2)
Volunteering to serve. A provider volunteering to provide
service to the premises shall respond to the commission by providing a proposal
that includes:
(A)
An affidavit duly signed by an officer of the company;
(B)
A description of the technology proposed for deployment;
(C)
An estimate of the costs for deployment and the recurring
monthly costs of service; and
(D)
An estimated timeline for deployment of facilities and
a date by which service will be extended to the premises.
(3)
Commission action. Upon receipt of a volunteering provider's
proposal, the commission may:
(A)
Approve a proposal administratively and permit the ETP
to serve the uncertificated area and recover its costs pursuant to subsection
(k) of this section; or
(B)
Reject a proposal and proceed to a hearing pursuant to
subsection (g) of this section.
(g)
Evidentiary hearing. If the petition cannot be processed
administratively, the commission shall conduct an evidentiary hearing to determine:
(1)
If an ETP is willing to be designated to provide service
to the petitioner(s); or
(2)
The ETP that is best able to serve the petitioner(s).
(h)
Commission decision. The commission should consider all
relevant factors, including, but not limited to:
(1)
The original cost to be incurred by a designated provider
to deploy service to the petitioning premises, and the effect of reimbursement
of those costs on the state universal service fund;
(2)
The number of access lines requested by the petitioners
for the petitioning premises;
(3)
The size of the geographic territory in which the petitioning
premises are included;
(4)
The proximity of existing facilities and the existence
of a preferred designated provider under the Public Utility Regulatory Act
(PURA) §56.213; and
(5)
Any technical barriers to the provision of service.
(i)
Commission order. The commission shall issue an order granting
or denying a petition within 180 days of the filing of the petition. In any
order granting a petition the commission shall include the following:
(1)
Description of the facilities to be deployed;
(2)
Estimated costs of deployment;
(3)
Aid to construction fee to be paid by the petitioner(s);
(4)
Monthly recurring charge to be paid by the petitioner(s);
(5)
Estimated cost to be recovered from the TUSF;
(6)
Recurring, monthly per line fee to be recovered from the
TUSF;
(7)
Date by which services must be extended to the premises;
and
(8)
Schedule of cost recovery consistent with the following:
(A)
Not later than the third anniversary of the date of the
order, for a deployment with an estimated original cost of $1 million or less;
(B)
Not later than the fifth anniversary of the date of the
order, for a deployment with an estimated original cost of more than $1 million,
but not more than $2 million; and
(C)
Not later than the seventh anniversary of the date of the
order, for a deployment with an estimated original cost of more than $2 million.
(j)
Cost recovery. A designated provider may recover from the
TUSF the provider's actual costs of providing service to the premises, including
the provider's original cost of deployment and actual recurring costs, not
recovered from the petitioner(s) either through an aid to construction charge
or through a monthly recurring charge.
(1)
The original cost of deployment includes the cost of the
provider's facilities installed in, or upgraded to permit the provision of
service to, the premises, as determined by the financial accounting standards
applicable to the provider, including an amount for the recovery of all costs
that are typically included as capital costs for accounting purposes.
(2)
The provider is permitted to recover interest at the prevailing
commercial lending rate on its original costs of deployment.
(3)
Actual recurring costs include maintenance and the ongoing
operational costs of providing service after deployment of the facilities
to the premises and a reasonable operating margin.
(k)
Cap on TUSF reimbursements. The commission may not authorize
or require any services to be provided under this section during a fiscal
year if the total amount of required reimbursements, together with interest
and obligations from preceding years, would equal an amount that exceeds 0.02%
of the annual gross revenues reported to the TUSF during the preceding fiscal
year.
§26.422.Subsequent Petitions for Service in Uncertificated Areas.
(a)
If the commission approves a petition requesting service,
residents of permanent residential premises or owners of permanent residential
or business premises in reasonable proximity to the premises that were the
subject of an approved petition who did not sign the prior petition requesting
service are not entitled to receive service under the Public Utility Regulatory
Act (PURA), Chapter 56, Subchapter F, prior to the fifth anniversary of the
date the prior petition was filed, unless the residents or owners file a new
petition and agree to pay aid to construction charges on the same terms as
applicable to the prior petitioner(s).
(b)
The designated provider shall receive reimbursement for
the original cost of deployment and actual recurring costs of providing service
to those additional residents in the same manner as the provider received
reimbursement of those costs in relation to the prior petitioner(s). The provider
may not receive reimbursement for the original cost of deployment under a
subsequent petition if the provider previously received complete reimbursement
for those costs from the Texas Universal Service Fund (TUSF). If the TUSF
has completely reimbursed the original cost of deployment as provided by §26.421
of this title (relating to Designation of Eligible Telecommunication Provider
to Provide Service to Uncertificated Areas), each subsequent petitioner must
pay into the TUSF an amount equal to the aid to construction charge paid by
each prior petitioner.
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 December 20, 2001.
TRD-200108136
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: February 3, 2002
For further information, please call: (512) 936-7308
16 TAC §26.423
The Public Utility Commission of Texas (commission) proposes
new §26.423, relating to a High Cost Universal Service Plan for Uncertificated
Areas where an Eligible Telecommunications Provider (ETP) Volunteers to Provide
Basic Local Telecommunications Service. The proposed new section will provide
guidelines concerning universal service fund reimbursement for high cost assistance
for the voluntary provision of voice-grade telecommunications service in uncertificated
areas of the state, thereby enhancing the provision of telecommunications
service throughout the state by providing a mechanism for Universal Service
Fund support to be available for basic local telephone service in areas where
the service has not otherwise been provided. Project Number 24527 is assigned
to this proceeding.
John Costello, Senior Telecommunications Analyst, Telecommunications Division,
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.
Mr. Costello 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 an increase in the number of voice-grade
telecommunication services provided to residential and single-line business
customers in the state of Texas. There will be no adverse effect on small
businesses or micro-businesses as a result of enforcing this section. There
is no anticipated economic cost to persons who are required to comply with
the section as proposed.
Mr. Costello 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.
In addition to comments on the proposed new rule, the commission requests
comments on the following question: "Is there a different approach other than
that provided within the proposed rule which would provide incentives for
a carrier to voluntarily provide service to an uncertificated area?"
The commission staff will conduct a public hearing on this rulemaking under
Texas Government Code §2001.029 in the Commissioners' Hearing Room, located
in the William B. Travis Building, 1701 North Congress Avenue, Austin, Texas
78701, on Tuesday, February 12, 2002 at 9:00 a.m.
Comments on the proposed new section (16 copies) may be submitted to the
Filing Clerk, Public Utility Commission of Texas, 1701 North Congress Avenue,
P.O. Box 13326, Austin, Texas 78711-3326, within 30 days after publication.
Reply comments may be submitted within 45 days after publication. Comments
should be organized in a manner consistent with the organization of the proposed
rules. 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 24527.
This new section is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2002) (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 PURA §56.021 which requires the commission to adopt
and enforce rules relating to the universal service fund.
Cross Reference to Statutes: Public Utility Regulatory Act §14.002
and Chapter 56.
§26.423.High Cost Universal Service Plan for Uncertificated Areas where an Eligible Telecommunications Provider (ETP) Volunteers to Provide Basic Local Telecommunications Service.
(a)
Purpose. This section establishes the guidelines for financial
assistance to ETPs that serve uncertificated areas of the state where an ETP
volunteers to provide basic voice-grade telecommunications service to permanent
residential and single-line business premises.
(b)
Definitions. The following words and terms, when used in
this section, shall have the following meaning unless the context clearly
indicates otherwise:
(1)
Eligible line--A residential line and a single-line business
line as defined by §26.403 of this title (relating to Texas High Cost
Universal Service Plan (THCUSP)).
(2)
Eligible Telecommunications provider (ETP)--A telecommunications
provider designated by the commission pursuant to §26.417 of this title
(relating to Designation as Eligible Telecommunications Providers to Receive
Texas Universal Service Funds (TUSF)).
(3)
Permanent residential or business premises--A premise as
defined pursuant to §26.421 of this title (relating to Designation of
Eligible Telecommunication Provider to Provide Service to Uncertificated Areas).
(4)
Uncertificated areas--An area of the state that is not
included within the certificated area of a holder of a certificate of convenience
and necessity (CCN).
(c)
Application. This section applies to telecommunications
providers that have been designated ETPs by the commission pursuant to §26.417
of this title.
(d)
Service to be supported by the High Cost Universal Service
Plan for uncertificated areas where an ETP volunteers to provide basic local
telecommunications service. The High Cost Universal Service Plan for uncertificated
areas shall support the provision by ETPs of basic local telecommunications
services as defined in §26.403(d) of this title.
(e)
Support for uncertificated areas where an ETP volunteers
to provide service. The TUSF administrator shall disburse monthly support
payments to ETPs qualified to receive support pursuant to this section. The
amount of support available to each ETP shall be calculated using the base
support amount available as provided under paragraph (1) of this subsection
as adjusted by the requirements of paragraph (3)(B) of this subsection.
(1)
Determining base support amount available to ETPs. The
monthly per-line support available for uncertificated areas shall be determined
by calculating the average of the per-line support amount approved for all
local telephone company exchanges of CCN holder's that are contiguous to the
uncertificated area for which reimbursement is requested.
(2)
Proceedings to determine support amount.
(A)
Initial determination for uncertificated areas.
(i)
Upon petition by an ETP, the commission shall establish
a monthly per-line support amount for an uncertificated area as identified
by the ETP.
(ii)
The review shall be accomplished in an administrative
or docketed proceeding initiated by the ETP requesting support for the provision
of single-line residence or business service within an uncertificated area.
(B)
Subsequent determination of support amount.
(i)
The commission shall subsequently review the support for
uncertificated areas consistent with the review provided for under §26.403
and §26.404 of this title (relating to Small and Rural Incumbent Local
Exchange Company (ILEC) Universal Service Plan).
(ii)
The commission may initiate review of the support for
uncertificated areas and base support amounts under this section on its own
motion at any time.
(3)
Calculating amount of support payments to individual ETPs.
After the monthly per-line amount is determined, the TUSF administrator shall
make the following adjustments each month in order to determine the actual
support payment that each ETP may receive each month.
(A)
Payments. The payment to each ETP shall be computed by
multiplying the per-line amount established by paragraph (1) of this subsection
for a given uncertificated area by the number of eligible lines served by
the ETP in such uncertificated area for the month.
(B)
Adjustment for federal USF support. The base support amount
an ETP is eligible to receive shall be decreased by the amount of federal
universal service high cost support received by the ETP.
(f)
Reporting requirements.
(1)
An ETP eligible to receive support under this section shall
provide the TUSF administrator with the following information:
(A)
A report of the total number of eligible lines served by
the ETP in a designated uncertificated area to the TUSF Administrator on a
monthly basis;
(B)
The telecommunications provider's tariffed residence and
single-line business rates, as of the provisioning date for service;
(C)
The average per-line assistance for each local exchange
telephone company exchange contiguous to the area in question; and
(D)
A calculation of the base support in accordance with the
requirements of this subsection and subsection (e) of this section.
(2)
Upon request by the commission, the telecommunications
provider awarded support under this section shall explain the basis on which
it is establishing rates under this section.
(3)
An ETP shall report any other information required by the
commission and the TUSF Administrator, including any information necessary
to assess contributions to and disbursements from the TUSF.
(g)
Initial support provided pursuant to this section. Initial
payment of support under this section shall be retroactive to the latter of
the date on which a telecommunications provider either:
(1)
Petitions the commission for THCUSP assistance; or
(2)
Begins providing basic local telephone service to the residence
or business location approved for support.
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 December 20, 2001.
TRD-200108132
Rhonda Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: February 3, 2002
For further information, please call: (512) 936-7308
Chapter 75.
AIR CONDITIONING AND REFRIGERATION CONTRACTOR LICENSE LAW
an
] electric utility of electric energy, which,
but for the purchase from the qualifying facility or qualifying facilities,
such
PTB REP, POLR, or electric
utility would generate itself or
purchase from another source.
by an electric utility
] to replace energy or capacity ordinarily generated
by a qualifying facility's own generation equipment during an unscheduled
outage of the qualifying facility.
(4)
] Firm power--From a qualifying
facility, power or power-producing capacity that is available [
to the
electric utility
] pursuant to a legally enforceable obligation for scheduled
availability over a specified term.
(5)
] Host utility--The utility with
which the qualifying facility is directly interconnected.
(6)
] Maintenance power--Electric
energy or capacity supplied [
by an electric utility
] during scheduled
outages of the qualifying facility.
(7)
] Non-firm power from a qualifying
facility--Power provided under an arrangement that does not guarantee scheduled
availability, but instead provides for delivery as available.
(8)
] Parallel operation--A mode
of operation which enables a qualifying facility to export automatically any
electric capacity which is not consumed by the qualifying facility or the
user of the qualifying facility's output. Parallel operation results in three
possible states of operation at any point in time:
(9)
] Purchase--The purchase of
electric energy or capacity or both from a qualifying facility by
a PTB
REP, POLR, or
[
an
] electric utility.
(10)
] Purchasing utility--The utility
that is purchasing a qualifying facility's capacity and/or energy.
(11)
] Quality of firmness of a
qualifying facility's power--The degree to which the capacity offered by the
qualifying facility is an equivalent quality substitute for
firm purchased
power or an electric
[
the
] utility's own generation [
or firm purchased power
]. At a minimum the following factors should
be considered in determining quality of firmness:
(12)
] Sale--The sale of electric
energy or capacity or both supplied [
by an electric utility
] to
a qualifying facility.
(13)
] Supplementary power--Electric
energy or capacity [
supplied by an electric utility,
] regularly
used by a qualifying facility in addition to that which the facility generates
itself.
(14)
] System emergency--A condition
on a utility's system that is likely to result in imminent significant disruption
of service to customers or is imminently likely to endanger life or property.
an
] electric
utility for any purchase before the adoption of this section.
Electric
]
utility obligations.
subsections (f) and
] (g) of this section, each
PTB
REP, POLR, and
electric utility shall purchase any energy that is made
available from a qualifying facility:
(C)
An electric utility is not
required to purchase firm capacity from a qualifying facility unless it wins
an integrated resource planning solicitation pursuant to Subchapter H of this
chapter (relating to Electrical Planning).]
Avoided costs shall be determined
through a competitive bidding process pursuant to Subchapter H of this chapter,
and subject to the limitations of the Public Utility Regulatory Act (PURA) §34.054
(relating to Qualifying Facility Bids; Avoided Costs).
]
Rates for
purchase shall be
[
In the case in which the rates for purchase
are
] based upon a market-based determination of avoided costs over the
specific term of the contract or other legally enforceable obligation, the
rates for such purchase do not violate this subsection if the rates for such
purchase differ from avoided cost at the time of delivery. Payments which
do not exceed avoided cost shall be found to be just and reasonable operating
expenses of the utility.
two
] approaches:
(2)
] Rates for purchases of nonfirm
power may, at the option of the qualifying facility, be based on the full
cost at the time of delivery of decremental energy that would have been incurred
by the
electric
utility had the qualifying facility not been in
operation.
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Part 4.
TEXAS DEPARTMENT OF LICENSING AND REGULATION