Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter O. UNBUNDLING AND MARKET POWER
3.
CAPACITY AUCTION
16 TAC §25.381
The Public Utility Commission of Texas (commission) proposes
an amendment to §25.381, relating to Capacity Auctions. The proposed
amendment will modify §25.381(h)(3)(B)(iii) and (vi) by requiring that
two-year strips be auctioned for the 2004 through 2005 time period. The current
rule language indicates that the commission will make an evaluation as to
the need for the two-year strip. In addition, due to timing issues, the proposed
amendment modifies §25.381(h)(1)(A)(i) to delay the September 2003, auction
until October 2003, to allow the amendment to be finalized and take effect,
and still allow for 60-day notice of the auction. Project Number 27826 is
assigned to this proceeding.
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 14 days after publication
(comments due June 20, 2003). 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 27826.
Matthew Troxle, Senior Retail Market Analyst, Electric 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. Troxle 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 increased competitiveness in the wholesale market
through increased availability of generation and increased liquidity. 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. Troxle 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.
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2003) (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. The commission also proposes this amendment pursuant to
PURA §39.153, which grants the commission authority to establish rules
that define the scope of the capacity entitlements to be auctioned, and the
procedures for the auctions.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
31.002, 39.153, 39.201, and 39.262.
§25.381.Capacity Auctions.
(a) - (g)
(No change.)
(h)
Auction process.
(1)
Timing issues.
(A)
Frequency of auctions.
(i)
Auction dates. Capacity auctions shall begin on March 10,
July 10, September 10, and November 10 of each year
, except in 2003,
when the September 10, auction will be held on October 7, 2003
. If the
date for an auction start falls on a weekend or banking holiday, then that
auction shall begin on the first business day after the weekend or banking
holiday.
(ii) - (iii)
(No change.)
(B)
(No change.)
(2)
(No change.)
(3)
Term of auctioned capacity.
(A)
(No change.)
(B)
Schedule of subsequent auctions.
(i) - (ii)
(No change.)
(iii)
The auction in September of a year will auction:
(I)
Approximately 30% of the entitlements as the one-year strips
for the next year; [
(II)
Approximately 20% of the entitlements as discrete months
for each of the 12 calendar months of the next year
; and
[
(III)
In 2003, approximately 20% of the entitlements
as two one-year strips, with the strips auctioned jointly (the 12 months of
2004 and 2005).
(iv) - (v)
(No change.)
(vi)
The commission will periodically evaluate the need
to sell one-year and two-year strips and make appropriate adjustments to the
terms of the auctions.
[
(C)
(No change.)
(4) - (8)
(No change.)
(i) - (m)
(No change.)
[(n)
This section, as adopted, becomes effective
on August 1, 2002.]
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 May 22, 2003.
TRD-200303196
Rhonda G. Dempsey
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: July 6, 2003
For further information, please call: (512) 936-7308
Chapter 76.
WATER WELL DRILLERS AND WATER WELL PUMP INSTALLERS
and
]
.
]
In June of 2003, an evaluation will be
made by the commission as to the need for another set of two-year strips (the
24 months of 2004 through 2005). If such term is deemed to be necessary, the
next set of two-year strips will be auctioned in September of 2003. If such
term is not deemed to be necessary, then subsequent auctions will auction
50% of entitlements over one-year strips and 50% of the entitlements as discrete
months.
]
Part 4.
TEXAS DEPARTMENT OF LICENSING AND REGULATION