Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter B. CUSTOMER SERVICE AND PROTECTION
16 TAC §25.41
The Public Utility Commission of Texas (commission) proposes
an amendment to §25.41, relating to Price to Beat. The proposed amendment
will address the time frame leading up to and after the end of the Price to
Beat period on January 1, 2007. The amendment will also classify Price to
Beat customers as former PTB customers at the expiration of the Price to Beat
period. This rule is a competition rule subject to judicial review as specified
in PURA §§39.001(e) and (f). Project Number 31416 is assigned to
this proceeding.
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.
Matthew Troxle, Director of the Retail Market Oversight Section, Electric
Industry Oversight 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 amended section will be that the terms and conditions governing
how Price to Beat customers are to be treated upon the expiration of the Price
to Beat will be clear and unambiguous. In addition, the rate for Price to
Beat customers at the end of the Price to Beat Period will be more reflective
of a market based rate. 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 (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking,
if requested pursuant to the Administrative Procedure Act, 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 Friday,
April 7, 2006, at 8:00 a.m. The request for a public hearing must be received
within 21 days after publication.
Comments on the proposed amendment 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. Sixteen copies
of comments to the proposed amendment are required to be filed pursuant to
§22.71(c) of this title. Reply comments may be submitted within 31 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 31416 - PTB.
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (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, §39.001(a) which requires the commission to protect
the public interest during the transition to and in the establishment of a
fully competitive electric power industry, §39.102(b) which allows the
affiliated retail electric provider to continue to serve a retail electric
customer until the customer chooses service from another provider, §39.101(b)
which entitles a customer to choose its retail electric provider, and §39.202,
relating to the Price to Beat.
Cross Reference to Statutes: Public Utility Regulatory Act §39.202.
§25.41.Price to Beat.
(a) - (b)
(No change.)
(c)
Definitions. The following words and terms, when used in
this section, shall have the following meanings, unless the context indicates
otherwise:
(1) - (2)
(No change.)
(3)
Former PTB Customer--A customer who was
served under a price to beat Terms of Service document on the day preceding
the expiration of the price to beat period, including any customer who had
previously been served at the price to beat and has not made an affirmative
choice of a different service plan.
(4)
[
(5)
[
(6)
[
(7)
[
(8)
[
(9)
[
(10)
[
(A)
a request for proposals (RFP) for full-requirements service
of 10% of price to beat load for a duration of three years expressed in cents
per kWh; and
(B)
the price resulting from the capacity auctions of the affiliated
power generation company (PGC) required by §25.381 of this title (relating
to Capacity Auctions) for baseload capacity entitlements auctioned in the
ERCOT zone where the majority of price to beat customers reside, expressed
in cents per kWh. The calculation of the price resulting from the capacity
auctions shall assume dispatch of 100% of the entitlement and shall use the
most recent auction of a 12-month forward strip of entitlements, or the most
recent aggregated forward 12 months of entitlements. The affiliated REP, at
its option, may conduct an RFP or purchase auction for an amount equivalent
to the amount, in MWs, of the affiliated PGC's capacity auction for the September
2001 12-month forward strip baseload entitlements.
(11)
[
(12)
[
(13)
[
(d)
Price to beat offer.
(1) - (2)
(No change.)
(3)
An affiliated REP may not change the Terms
of Service document of a price to beat customer to be less advantageous to
the customer until the expiration of the price to beat period.
(e) - (l)
(No change.)
(m)
Expiration of the price to beat period.
The following paragraphs define the treatment of former PTB customers after
the expiration of the price to beat period and during the 180 days prior to
the expiration of the price to beat period.
(1)
For the 180 days prior to the expiration
of the price to beat period, the affiliated REP shall include a bill insert
in each bill to price to beat customers, in a format developed by and approved
by the commission.
(2)
45 days prior to the expiration of the
price to beat period, the affiliated REP will mail a copy of the price to
beat Terms of Service document to price to beat customers. This document will
make no changes from the version of the Terms of Service document that the
price to beat customer is currently taking service under.
(3)
The affiliated REP shall provide to REPs
and aggregators, at least 120 days before the expiration of the price to beat
period, a mass customer list of customers served by the affiliated REP at
price to beat rates. The mass customer list shall contain the information
that the registration agent is authorized to release under §25.472 of
this title (relating to Privacy of Customer Information). The affiliated REP
shall not be required to comply with the provisions of §25.472(a)(2)
of this title prior to releasing its list of price to beat customers.
(4)
Upon the expiration of the price to beat
period, former PTB customers will be served according to the price to beat
Terms of Service document that was mailed to the customer pursuant to subsection
(m)(2) of this section.
(5)
Former PTB customers will continue to be
served under the price to beat Terms of Service document until the affiliated
REP complies with the requirements of §25.475(e)(1) of this title (relating
to Information Disclosures to Residential and Small Commercial Customers).
A notice of changes in terms and conditions of service shall not be issued
before the expiration of the price to beat period.
(6)
Any notice of changes in terms and conditions
of service shall not automatically move a former PTB customer onto a long-term
contract (more than month-to-month service) without an affirmative decision
by the former PTB customer to be placed upon the long-term contract.
(7)
Former PTB customers shall not be transferred
to POLR or disconnected, except pursuant to Subchapter R (Customer Protection
Rules for Retail Electric Service) of this chapter.
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 February 27, 2006.
TRD-200601023
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 9, 2006
For further information, please call: (512) 936-7223
16 TAC §25.43
The Public Utility Commission of Texas (commission) proposes
an amendment to §25.43, relating to Provider of Last Resort (POLR). The
proposed amendment will modify the structure and the mechanics of Provider
of Last Resort service to take into account changed circumstances in the competitive
market, the end of the Price to Beat period on January 1, 2007, and to reflect
the experience gained from prior Provider of Last Resort service. This rule
is a competition rule subject to judicial review as specified in PURA §39.001(e).
Project Number 31416 is assigned to this proceeding.
Matthew Troxle, Director of the Retail Market Oversight Section, Electric
Industry Oversight 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 amended section will be that electricity prices for customers
receiving service from the Provider of Last Resort will better reflect the
cost to provide the service. 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 (APA), Texas Government Code §2001.022.
The commission staff will conduct a public hearing on this rulemaking,
if requested pursuant to the Administrative Procedure Act, 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 Friday,
April 7, 2006, at 8:00 a.m. The request for a public hearing must be received
within 21 days after publication.
Comments on the proposed amendment 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. Sixteen copies
of comments to the proposed amendment are required to be filed pursuant to
§22.71(c) of this title. Reply comments may be submitted within 31 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 31416 - POLR. The commission will also accept comments
on the following questions:
1. In regard to the proposed POLR rate, what is the appropriate "MCPE multiplier"
to be applied as the "X%" in the POLR rate formula?
2. In regard to the proposed POLR rate, what are the appropriate monthly
customer charges or demand charges?
3. In regard to the proposed POLR rate, how far in advance of billing does
the rate need to be calculated? Does a customer who is to be transitioned
to POLR need to know the rate at that time or is it appropriate for the rate
to be calculated after service is rendered, but before a bill is issued?
4. In regard to the small non-residential greater than or equal to 50 kW
customer class, what are the appropriate customer protection rules to be waived?
5. In regard to the eligibility criteria to serve as a POLR, are the proposed
1% threshold values too low (or too high)?
6. In regard to the eligibility criteria to serve as a POLR, what should
be the minimum financial qualifications that a REP must demonstrate to the
Commission?
7. Should customers who are served by a POLR provider because their chosen
REP is no longer serving them be able to request an out of cycle meter read
without being charged the applicable transmission and distribution utility
discretionary charge for the service? If so, what is the appropriate cost
recovery methodology that should be used to compensate the transmission and
distribution utility for performing the service?
8. Is the selection methodology appropriate for volunteer POLR REPs and,
if not, how should it be modified to encourage REP participation?
This amendment is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (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.
Cross Reference to Statutes: Public Utility Regulatory Act §39.202.
§25.43.Provider of Last Resort (POLR).
(a)
Purpose. The purpose of this section is to ensure that,
as mandated by the Public Utility Regulatory Act (PURA) §39.106:
(1)
A basic, standard retail service package will be offered
by a POLR
or multiple POLRs
at a fixed, non-discountable rate to
any requesting customer in all of the Texas transmission and distribution
utilities' (TDU's) service areas that are open to competition; and
(2)
(No change.)
(b)
Application
; termination of service for non-payment
.
(1)
(No change.)
(2)
Until the expiration of the price to beat period,
POLR service for a residential or small non-residential customer of
a competitive REP whose electric service is terminated for non-payment under
the provisions of §25.482 of this title (relating to Termination of Contract)
shall be provided by the affiliated REP for that POLR area. In the case of
the territory encompassed by Sharyland Utilities, LP, the affiliated REP shall
be deemed to be First Choice Power, Inc.[
(3)
POLR service is intended to provide continuity of
service. The POLR rate must reflect the inherent level of risk associated
with POLR service. POLR service is envisioned as a temporary service and the
POLR rate is not intended to be a competitive offering, but a cost and risk
based offering.
[
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(c)
Definitions. The following words and terms when used in
this section shall have the following meaning, unless the context indicates
otherwise:
(1) - (4)
(No change.)
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(5)
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(6)
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(7)
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(8)
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(9)
[
(10)
Small non-residential customer greater
than or equal to 50 kW--A non- residential retail customer having a peak demand
of 50 kW, but less than 1,000 kW.
(d)
POLR service.
(1)
For the purpose of POLR service, there will be
four
[
(2)
The
POLRs
[
(A) - (B)
(No change.)
(3)
The
POLRs
[
(A) - (E)
(No change.)
(4)
The
POLRs
[
(e)
Standards of service.
(1)
(No change.)
(2)
A POLR shall serve any customer according
to the Standard Terms of Service in subsection (f)(1) of this section for
any customer's respective customer class as described in subsection (d)(2)
of this section, except that volunteer POLR REPs may charge a rate less than
the POLR rate.
(3)
[
(A)
The
POLRs
[
(B)
The
non-volunteer POLRs
[
(C)
The
POLRs
[
(D)
The POLRs shall inform customers that
the customer may accelerate a switch to another REP by requesting a "special
or out-of-cycle meter read" and paying the applicable transmission and distribution
utility charge for the meter read.
(f)
Customer information.
(1)
[
(A)
Standard
Terms of Service [
Figure: 16 TAC §25.43(f)(1)(A) (.pdf)
(B)
Standard
Terms of Service [
Figure: 16 TAC §25.43(f)(1)(B) (.pdf)
(C)
Standard
Terms of Service [
Figure: 16 TAC §25.43(f)(1)(C) (.pdf)
(2)
[
(g)
General description of POLR selection process.
(1)
All REPs shall provide information to the commission
in accordance with subsection (h)(1) of this section. Based on this information,
the commission's designated representative
[
(2)
[
(3)
[
(h)
REP eligibility to serve as POLR. In each even-numbered
year, the commission shall determine the eligibility of certified REPs to
serve as
a
POLR for the terms scheduled to commence in January
of the next year.
(1)
All REPs shall
[
(2)
Eligibility to be designated as a POLR is specific
to POLR area and customer class.
[
(A)
A proceeding to revoke or suspend the REP's certificate
is pending at the commission
, the
[
(B)
The REP's total meters served for the particular
class is less than 1.0% of the total meters in the TDU service area for that
customer class
[
(C)
The REP total customers served for the
particular class is less than 1.0% of the total customers in the POLR area
for that customer class;
(D)
[
(E)
[
(F)
[
(G)
[
(H)
A REP that files an affidavit stating
that it does not serve customers subject to the customer protection rules,
and should therefore be considered ineligible to provide POLR service, may
opt-out of eligibility for the small non-residential less than 50 kW customer
class;
(I)
A REP files an affidavit stating that
it does not serve small non-residential customers in either class, except
for the low-usage sites of the REP's large non-residential customers, or commonly
owned or franchised affiliates of the REP's large non-residential customers,
and should therefore be considered ineligible to provide POLR service, may
opt-out of eligibility for either of the small non-residential customer classes;
or,
(J)
The REP does not meet certain minimum
financial qualifications as determined by the commission.
[(G)
The REP is certified only to provide
POLR service for an affiliate.]
(3)
[
(4)
A REP that is serving as a POLR provider
in accordance with this section shall submit reports not later than March
1 and September 1 of each year providing the information specified in paragraph
(2) of this subsection.
(i)
Volunteer POLR REP list. Based on the information
provided in accordance with this subsection and subsection (h) of this section,
the commission shall post on its webpage the REPs that are willing to serve
as POLR on a volunteer basis. REPs may submit an indication of their willingness
to voluntarily serve as POLR no earlier than June 1 and no later than July
31 of each even-numbered year. The order in which customers shall be transferred
to the volunteer POLR REPs shall be inverse order of market share as it exists
when the volunteer POLR REP list is created, meaning the REP with the smallest
market share at the time the volunteer POLR REP list is created, shall be
first on the volunteer POLR REP list.
[
(1)
A volunteering POLR REP shall provide to the commission
the name of the REP, the appropriate contact person with current contact information,
which customer classes the REP is willing to serve within each POLR area,
and the estimated amount of load the REP is willing to serve by customer class
and POLR area.
[
(2)
[
(3)
A volunteer POLR REP shall not charge its POLR customers
a rate higher than the POLR rate for POLR service. A volunteer REP may market
to its POLR customers rates lower than the POLR rate. The volunteer POLR REP,
in any marketing to the POLR customer, shall make it clear that the customer
has the right to switch to a different REP or take service from the volunteer
POLR REP under a rate other than the rate set out in the standard terms of
service, if the POLR offers such a rate. A customer may agree to a long-term
contract with the POLR REP, but the POLR REP shall not represent to the customer
that agreeing to a long-term contract is the only option to avoid the POLR
rate.
[
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[
[
(4)
Upon the transition of customers to the POLRs, ERCOT
shall use the volunteer REP list to assign customers to the volunteer POLR
REPs in a non-discriminatory fashion, before assigning customers to the non-volunteering
POLR providers. Customers shall be assigned to the volunteer POLR REPs in
the order that they appear on the volunteer POLR list, and the volunteer POLR
REP shall not be assigned more load than it has indicated that it is willing
to serve. A sequential electronic service identifier (ESI ID) methodology
or other non- discriminatory methodology shall be employed to ensure non-discriminatory
assignment of customers to the volunteer POLR REPs.
[
(5)
A volunteer POLR REP may file a request to be removed
from the volunteer POLR REP list or to modify the estimated amount of load
it is willing to serve at any time, and such a request shall be effective
30 days after the request is filed with the commission.
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(j)
Non-volunteering POLR providers
[
(1)
The REPs eligible to serve as POLRs shall be as determined
based on the information provided by REPs in accordance with subsection (h)
of this section.
[
[
[
(2)
In each POLR area, for each POLR customer class there
shall be five non-volunteering POLR providers. The non-volunteering POLR providers
shall be the five eligible REPs that have the greatest market share of customer
load by customer class within the POLR area. The commission shall designate
the non-volunteering POLR providers by October of the year preceding the POLR
term, based upon the data the commission has at the time of the determination.
[
(3)
In the event of a transition of customers to POLR
service, customers shall be allocated to the non-volunteering POLR providers
only after the volunteer POLR REP list has been exhausted. The customers to
be transitioned to the non-volunteering POLR providers shall be allocated
to the non-volunteering POLR providers in a non-discriminatory fashion, in
accordance with the percentage of market share of customer load, as determined
in paragraph (2) of this subsection, by POLR area and customer class. If a
REP that is designated as a non-volunteering POLR provider also volunteers
as a volunteer POLR REP, the amount of load allocated to the REP on a non-volunteer
basis shall be reduced by the amount of load served by the REP on a volunteer
POLR REP basis. A sequential ESI ID methodology or other non-discriminatory
methodology shall be employed to ensure non-discriminatory assignment of customers
to the non-volunteering POLR providers.
[
(k)
POLR rate.
(1)
The provisions of this paragraph establish the maximum
POLR rate of volunteer POLRs and the POLR rate for non-volunteering POLRs.
[
(A)
The POLR rate for the residential customer
class shall be determined by the following formula: POLR rate (in cents/kWh)
= (X% * Zonal Average Monthly MCPE Shaped by ERCOT Load Profile * Customer's
Metered Usage) + (Monthly Customer Charge or Demand charge) + (TDSP Charges);
Where the "Zonal Average Monthly MCPE shaped by ERCOT Load Profile" is a
weighted average defined per Weather Zone and Congestion Zone, and is reported
on the ERCOT website, as:
Figure: 16 TAC §25.43(k)(1)(A) (.pdf)
(B)
The POLR rate for the small non-residential
customer classes shall be determined by the following formula: POLR rate
(in cents/kWh) = (X% * Zonal 30-Day Average MCPE Shaped by ERCOT Load Profile
* Customer's Metered Usage) + (Monthly Customer Charge or Demand Charge) +
(TDSP Charges); Where the "Zonal 30-Day Average MCPE Shaped by ERCOT Load
Profile" is a weighted average defined per Weather Zone and Congestion Zone,
and is reported on the ERCOT website, as:
Figure: 16 TAC §25.43(k)(1)(B) (.pdf)
(C)
The POLR rate for the large non-residential
customer class shall be determined by the following formula: POLR rate (in
cents/kWh) = (X% * MCPE Shaped by ERCOT Load Profile for Time Customer was
Served Shaped by ERCOT Load Profile * Customer's Metered Usage) + (Monthly
Customer Charge or Demand Charge) + (TDSP Charges); Where the "MCPE Shaped
by ERCOT Load Profile for Time Customer was Served Shaped by ERCOT Load Profile"
is a weighted average defined per Weather Zone and Congestion Zone, and is
reported on the ERCOT website, as:
Figure: 16 TAC §25.43(k)(1)(C) (.pdf)
(2)
If in response to a complaint or upon its own investigation,
the commission determines that a POLR failed to charge the appropriate POLR
rate, and as a result overcharged its customers, the POLR shall issue refunds
to the specific customers who were overcharged.
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(3)
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(l)
Prohibition on serving as POLR. A POLR REP shall
not be obligated to serve a customer within a customer class or a POLR area
that the POLR REP is not designated as a volunteering POLR REP or a non-volunteering
POLR provider. If a POLR REP challenges a customer assignment of ERCOT, and
the discrepancy cannot be resolved, the TDU in the applicable POLR area will
determine the customer class and if the customer resides within the TDU service
area. The customer will then be served by the appropriate POLR.
[
[
[
[
[
(m)
Limitation on liability. The POLR providers will
make reasonable provisions to provide POLR service to customers who request
POLR service, or are transitioned to POLR service, individually or through
a mass transition; however, in no event other than gross negligence or intentional
misconduct, shall the POLR providers be liable to a POLR customer, another
REP, or any other third party for any consequential, exemplary, special, incidental,
or punitive damages, including without limitation, lost opportunities or lost
profits related to providing or preparing to provide POLR service.
[
(n)
Transition of customers to POLR service.
(1)
(No change.)
(2)
A customer other than a residential customer or small
commercial customer (as defined in §25.471(d) of this title (relating
to General Provisions of Customer Protection Rules) may agree to a contract
or terms of service that allow a REP to transfer the customer to a POLR for
reasons other than non-payment, including the failure of the customer and
its REP to agree on terms of renewal or extension. Unless ERCOT has a transaction
that allows REPs to transfer such customers to the POLR, the POLR shall accept
written requests for such transfers from REPs and shall initiate a switch
for the customer to be transferred to the POLR. The acquisition by the POLR
of such customers is not a prohibited enrollment under §25.474 of this
title (relating to the Selection or Change of Retail Electric Provider).
[
(3) - (6)
(No change.)
(7)
A REP whose customers are transitioned
to POLR providers shall return any unused portion of a transitioned customer's
deposit within five business days.
(8)
ERCOT shall create a database of customer
information that will be populated and updated by all REPs to facilitate a
mass transition of customers to the POLR REPs. ERCOT shall determine what
customer information is necessary to populate the database. All REPs shall
comply with the requirements of ERCOT to populate and maintain the customer
information database. When a mass transition is initiated, the customer information
shall be provided to the POLR provider gaining the customer no later than
five business days from the date of mass transition initiation.
(9)
When customers are transitioned to a POLR
provider, the POLR provider may request usage and demand data from the appropriate
TDU and from ERCOT, prior to the transition to the POLR provider. This information
shall be provided under a confidentiality agreement.
(10)
Information from the TDU and ERCOT to
the POLR provider shall be provided in Texas SET format. However, it is allowable
to supplement the information to the POLR provider in other formats and fashions
to expedite the transition to the POLR provider. This transfer of information
will not constitute a violation of the customer protection rules provided
the information is provided under a confidentiality agreement.
(11)
A POLR may require a deposit from the
customer being transitioned to the POLR to continue to serve the customer
once the POLR has begun serving the customer. A POLR may request the deposit
before the POLR begins serving the customer, but the POLR shall begin providing
service to the customer even if the service initiation date is before the
POLR receives the deposit, if any deposit is required, and shall not disconnect
the customer until the appropriate time period to submit the deposit has elapsed.
The POLR provider may waive the deposit requirement if the waiver is applied
in a non-discriminatory fashion. The POLR provider shall waive the deposit
requirement for residential customers if the customer meets the qualifications
listed in section 2. SECURITY AND BILLING, of the Standard Terms of Service.
(12)
On the occurrence of one of the following
events, ERCOT shall initiate a mass transition of a REP's customers to the
POLR providers:
(A)
Termination of the Load Serving Entity
(LSE) or Qualified Scheduling Entity (QSE) Agreement with ERCOT;
(B)
Commission Order declaring a REP in default
of Tariff for Retail Delivery Service;
(C)
Commission Order de-certificating a REP;
(D)
Commission Order requiring a mass transition
to POLR providers; and,
(E)
At the request of a REP, for the mass
transition of that REP's customers, however, the POLR shall not be used as
a means to eliminate non-profitable contracts.
(13)
ERCOT shall investigate the feasibility
of revising the mass transition process so that customer transfers in a mass
transition are initiated by ERCOT, rather than by a REP. ERCOT shall report
its conclusions to the commission and implement the revised process, if directed
by the commission. ERCOT may provide procedures for the mass transition process,
consistent with this section.
(14)
Until the database described in paragraph
(8) of this subsection is complete, a REP whose customers are to be transitioned
to POLR providers shall provide the following information to the appropriate
POLR provider. Providing the information to the POLR providers under the conditions
of a transition to POLR providers shall not constitute a violation of Subchapter
R of this chapter:
(A)
REP's Data Universal Numbering System
(DUNS) number;
(B)
Customer's ESI ID number;
(C)
Customer's account number with the REP
that is losing the customer;
(D)
Customer's name;
(E)
Customer's telephone number;
(F)
Customer's billing "care of" name;
(G)
Customer's service address;
(H)
Customer's billing address;
(I)
Customer's most recent 12 month usage
and demand; and,
(J)
Customer's TDSP charges.
(o)
Termination of POLR status.
(1)
The commission may revoke a REP's POLR status after notice
and opportunity for hearing:
(A)
If the POLR fails to maintain REP certification;
(B)
If the POLR fails to provide service in a manner consistent
with this section; [
(C)
For good cause, provided the commission affords the POLR
due process
;
[
(D)
The POLR fails to maintain appropriate
financial qualifications.
(2)
If a POLR defaults or has its status revoked before the
end of its term,
after a review of the eligibility criteria, the next
REP that is still eligible per subsection (h) of this section will assume
the duties of the former POLR.
[
(3)
The provisions of this paragraph address the transition
to a new POLR at the end of a POLR term.
(A)
(No change.)
(B)
A notice containing the information specified in either
subparagraph (C) or (D) of this paragraph, as applicable, shall be provided
to each POLR customer at least 60 days prior to the end of the POLR term.
The notice shall be in type no smaller than 12 points in size. [
(C)
The notice provided by a POLR that elects to transfer
customers who fail to switch to another provider to a competitive affiliate
shall include a comparison of the POLR rates currently charged to the customer
to the rate offered by the competitive affiliate of the outgoing POLR [
(D)
(No change.)
(E)
If a POLR customer either requests service from the incoming
POLR or is terminated to the incoming POLR by the outgoing POLR, the outgoing
POLR shall offset the customer's final bill against the customer's deposit
and refund any remaining balance to the customer within 20 days from the customer's
final meter read date. The customer shall be entitled to pay the deposit required
by the incoming POLR in two installments in the manner provided in
§25.478(e)(3)
[
(p)
Electric cooperative delegation of authority. An electric
cooperative that has adopted customer choice may propose to delegate to the
commission its authority to select [
(1)
(No change.)
(2)
The delegation of authority will be made at least 30 days
prior to the time the commission issues
a publication of notice of eligibility
[
(3)
(No change.)
(4)
The electric cooperative wishing to delegate its authority
to designate a POLR will also provide the commission with the authority to
apply the selection criteria and procedures described in this section in selecting
the POLR
providers
within the electric cooperative's certificated
service area; and
(5)
If there are no competitive REPs offering service
in the
[
(q)
(No change.)
(r)
Waiver of customer protection rules.
(1)
The provisions of §25.475
(e)
[
(2)
Certain customer protection rules may
be waived for the small non-residential greater than or equal to 50 kW customer
class, pursuant to the Standard Terms of Service.
(s)
Notice of Transition to POLR Service.
When a customer is moved to POLR service the customer will be provided notice
of the transition by the REP transitioning the customer as well as by the
POLR provider. Notice shall be provided as soon as the transitioning REP knows
the customer will be transitioned to POLR service and as soon as the POLR
has the customer contact information. The notice of transition to POLR service
shall include, at a minimum the following items:
(1)
Notice by the REP transitioning the customer:
(A)
The reason for the transition to POLR
service;
(B)
A statement that the customer will receive
a separate notice from the POLR that will disclose the date the POLR provider
will begin serving the customer;
(C)
A description of how and when any unused
customer deposit will be returned to the customer; and,
(D)
The following statement: "If you would
like to choose a different retail electric provider, please access www.powertochoose.com
for a list of providers in your area;"
(E)
If applicable, a description of the activities
that the REP will use to collect any outstanding payments, including the use
of consumer reporting agencies, debt collection agencies, small claims court,
and other remedies allowed by law, if the customer does not pay or make acceptable
payment arrangements with the REP; and,
(F)
Notice to the customer that the customer
may accelerate a switch to another REP by requesting a "special or out-of-cycle
meter read" and paying the applicable transmission and distribution utility
charge for the meter read.
(2)
Notice by the POLR provider:
(A)
The date the POLR provider will begin
serving the customer;
(B)
A description of the POLR pricing mechanism
and the current POLR rate;
(C)
The deposit requirements of the customer
and any applicable deposit waiver provisions;
(D)
The following statement: "If you would
like to choose a different retail electric provider, please access www.powertochoose.com
for a list of providers in your area;"
(E)
The applicable POLR Standard Terms of
Service;
(F)
The applicable disconnection procedures;
and,
(G)
Notice to the customer that the customer
may accelerate a switch to another REP by requesting a "special or out-of-cycle
meter read" and paying the applicable transmission and distribution utility
charge for the meter read.
(t)
Disconnection by POLR. The POLR provider
must comply with the applicable customer protection rules as provided for
under Subchapter R of this chapter except as otherwise stated in this section.
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 February 27, 2006.
TRD-200601043
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 9, 2006
For further information, please call: (512) 936-7223
16 TAC §§25.502, 25.504, 25.505
The Public Utility Commission of Texas (commission) proposes
amendments to §25.502, relating to Pricing Safeguards in Markets Operated
by the Electric Reliability Council of Texas, new §25.504, relating to
Wholesale Market Power in the Electric Reliability Council of Texas Power
Region, and new §25.505, relating to Resource Adequacy in the Electric
Reliability Council of Texas Power Region. The proposed amended rule and new
rules eliminate the Modified Competitive Solution Method (MCSM); define the
term "market power" with respect to the wholesale electricity market in the
Electric Reliability Council of Texas (ERCOT) power region, and establish
mechanisms to address scarcity pricing and resource adequacy in the ERCOT
power region. These rules are competition rules subject to judicial review
as specified in the Public Utility Regulatory Act (PURA), Texas Utilities
Code §39.001(e). Project Number 31972 is assigned to this proceeding.
Development of proposed new §25.504 took place under Project Number
29042, Rulemaking on Definition of Wholesale Electric Market Power in the
ERCOT Power Region. Development of proposed new §25.505 took place under
Project Number 24255, Rulemaking Concerning Planning Reserve Margin Requirements.
In addition, on September 2, 2005, commission staff published in the
The amendment and proposed new sections are intended to provide greater
certainty to the public and to market participants concerning how the commission
will determine the existence of market power in the ERCOT wholesale electricity
markets and the actions the commission and ERCOT will take to assure an adequate
supply of electricity in the ERCOT market. In 2004, the commission adopted
§25.503, relating to Oversight of Wholesale Market Participants. That
rule prohibited certain conduct by market participants who have market power,
however, the term "market power" was not defined in the rule or in PURA. Subsequent
investigations by the commission have demonstrated the need to define the
term "market power," both to assist the commission in its enforcement efforts
and to provide assurances to market participants concerning how the prohibitions
in §25.503 would be applied. Accordingly, proposed new §25.504 will
provide a definition of "market power."
Although Texas currently has an adequate and reliable supply of electricity
available to meet its projected demands, recent growth in demand has indicated
the need to assure that the ERCOT market sends the appropriate price signals
to encourage continued growth in supply, both from generation resources and
load resources. Proposed new §25.505 establishes mechanisms by which
ERCOT can obtain needed information from market participants, assess resource
adequacy and provide its assessment to the market. The new section also allows
ERCOT to enter into contracts to obtain additional supply to assure the reliability
of the ERCOT grid. In order to encourage growth in the supply of generation
resources, the proposed section allows for a structured increase in bid caps
applicable in the ERCOT market and establishes a scarcity pricing mechanism.
To encourage growth in the supply of load resources, the rule requires ERCOT
to take steps designed to improve the ability of load resources to respond
to price changes as a means of increasing the supply of electricity. Finally,
the proposed section requires that certain information submitted by suppliers
as confidential information be released to the market after an appropriate
period of time, as a means of assuring that market participants can assess
the competitiveness of the market. The commission anticipates that such action
will enhance competition and will also enhance the commission's enforcement
efforts by providing increased scrutiny of market participants by other market
participants and the public.
Because of the significant changes being proposed in §25.505, the
commission has determined that the existing disclosure provisions and system-wide
offer cap contained in §25.502 should be eliminated, as indicated in
the proposed amendment. For similar reasons, §25.502 is also being amended
to eliminate the Modified Competitive Solution Method ordered by the commission
in Docket No. 24770.
When commenting on specific subsections of the proposed rules, parties
are encouraged to describe "best practice" examples of regulatory policies,
and their rationale, that have been proposed or implemented successfully in
other areas already undergoing electric industry restructuring, if the parties
believe that Texas would benefit from application of the same policies. In
doing so, parties are strongly encouraged to address the concerns of these
rules, which are
how to identify market power
and
In addition, the commission invites comment on the following questions.
1. Definition of market power. The term "exclude competition" is used by
the U.S. Supreme Court in the seminal antitrust case
U.S. v. E.I. Du Pont de Nemours & Co
. Earlier versions of this
proposed rule replaced "exclude" with "impair." Please comment on which term
would be more suited to a definition of market power applicable to a wholesale
electricity market.
2. Disclosure of disaggregated data. With respect to proposed §25.505(f),
the commission seeks comment on potential commercial impacts of disclosing
disaggregated, resource/qualified scheduling entity (QSE) specific, offer
and quantity information two days after real-time and disclosing other information
after 30 days. The commission has received general comments on the potential
impacts of the disclosure of disaggregated offer information, but requests
that commenters please articulate clear examples of potential commercial impacts
to your company that will result from disclosure of each specific type of
information and how the rule could be revised to address those impacts.
3. Credit requirements. The commission seeks comment on whether the credit
requirements for QSEs in the current ERCOT Protocols will be sufficient if
the offer caps are raised to the levels proposed in §25.505(i). If the
current credit requirements will not be sufficient after the adoption of the
proposed rule, should modifications or additional credit requirements be specified
in a commission-sponsored rulemaking, or left to the ERCOT stakeholder process?
If such modifications or additional requirements should be specified in this
rulemaking, then please provide recommended language and corresponding rationale,
for possible adoption as part of §25.505.
4. Considerations in setting the levels of the system-wide offer cap. The
commission seeks comment on the appropriate levels of the system-wide offer
caps from the implementation date of §25.505 through 2009. When commenting
on this issue, please address what factors impact your answers, including
those listed below:
(a) The appropriate length (number of hours) and intensity (level of prices)
of scarcity pricing for the ERCOT market. For instance, greater number of
hours allowed for scarcity pricing would result is a lower cap applied in
each hour to reach the $150,000 threshold in proposed §25.505(i)(5)(iv).
Conversely, a shorter time would allow a higher individual cap. The commission
seeks input on how to balance these two variables.
(b) The appropriate level of the HCAP that would strongly encourage forward
contracting for resources by load-serving entities.
(c) The projected reserve margin through 2010, as presented in ERCOT's
most recent report on capacity, demand, and reserves.
(d) The level of HCAP that would encourage more demand-side participation
(industrial loads, large commercial loads, small commercial loads, residential
loads, energy efficiency programs) in current or planned ERCOT-operated markets
(both real-time and centralized day-ahead). Please include a discussion of
what factors, besides the level of the offer cap, may influence loads to increase
their demand-side response in these markets.
5. Timing of the Annual Resource Adequacy Cycle. The commission seeks comment
on the start date of the Annual Resource Adequacy Cycle. Proposed §25.505
has the start date as January 1 of each year. Other start dates the commission
is considering are October 1, March 1, and May 1. Another alternative being
considered is to enforce the low system-wide offer cap whenever the Peaker
Net Margin for the previous 365 days is equal to or greater than $150,000
per megawatt and reinstate the high system-wide offer cap when the Peaker
Net Margin for the previous 365 days drops below $75,000 per megawatt. Please
state your preference for the start date and the reason for your preference.
In particular, the commission seeks comments on the impact of the start date
on the level and timing of scarcity pricing in the summer months and resource
availability during extreme weather events in the winter months.
6. Resource Adequacy Backstop. The commission seeks comment from ERCOT
and other parties on the circumstances and timing of events that may trigger
the implementation of the procedures in §25.505(j), as well as other
possible resource adequacy backstop mechanisms than the one described in §25.505(j).
Please describe any alternative in detail, provide the rationale for preferring
the alternative approach, and provide rule language that the commission could
use to implement the alternative.
David Hurlbut, Senior Economist, Electric Division, and Eric Schubert,
Senior Market Economist, Electric Division, have determined that for each
year of the first five years the proposed amendment to §25.502, new §25.504,
and new §25.505 will be in effect, enforcing or administering the rules
does not have foreseeable implications relating to cost or revenues for state
or local government.
Dr. Hurlbut has determined that for each year of the first five years the
proposed amendment to §25.502 will be in effect, the public benefit expected
as a result of adopting the proposed amendment to §25.502 will be an
improvement in the orderly transition to an energy-only market. MCSM was designed
to address "hockey stick" pricing, in which a supplier prices a small portion
of its offer exorbitantly higher than the rest of its offer. The provisions
of new §25.504 and §25.505 are expected to address most, if not
all, of the concerns related to hockey-stick pricing, eliminating the need
for MCSM. If there are any remaining concerns about hockey-stick pricing,
the appropriate venue for considering those matters is in Project Number 31575,
Improvements to the ERCOT Zonal Market Design. Dr. Hurlbut has also determined
that for each year of the first five years the proposed amendment to §25.502
will be in effect, there are no probable economic costs to persons required
to comply with the proposed amendment to §25.502, because the amendment
is limited to deletion of an existing pricing restriction.
Dr. Hurlbut has determined that for each year of the first five years the
proposed new §25.504 will be in effect, the public benefit expected as
a result of adoption of new §25.504 section will be increased certainty
with respect to the determination of what entities, if any, possess market
power within ERCOT. This will enable the commission to take appropriate action,
through enforcement proceedings or mitigation measures, to protect the public
interest from the possible abuse of market power by entities possessing market
power. The rule will also provide greater certainty to market participants
concerning the application of commission rules dealing with wholesale market
activities. By enhancing the commission's ability to address any market power
abuses, the proposed rule also provides greater assurance that changes in
the wholesale price of electricity are indicative of scarcity or surplus of
supply rather than the ability of any supplier to control prices through the
exercise of market power. In order for high prices in an energy-only market
to provide assurance that new capacity should be added and will be profitable,
all market participants, the investment community, and the general public
must be assured that no supplier has the ability to control energy prices
without regard to scarcity.
In addition to providing a definition of market power applicable to all
wholesale electricity-related markets in the ERCOT power region, the new §25.504
will provide some clarity about generation entities that are simply too small
to have market power on a system-wide basis in ERCOT. The pricing activities
of these smaller entities are sufficiently disciplined by competitive pressures
that an ERCOT-wide market power review is not necessary. Accordingly, an exemption
is appropriate for such small entities. For larger generation entities, who
could conceivably have market power, the proposed rule includes a provision
for a generation entity to propose a voluntary mitigation plan for commission
approval, although obtaining such a plan is not required. If approved, the
voluntary mitigation plan would establish guidelines for pricing that would
not be considered economic withholding. The additional certainty provided
by the proposed rule will benefit all market participants and the public.
Dr. Hurlbut has determined that for each year of the first five years the
proposed new §25.504 will be in effect, there are no probable economic
costs to persons required to comply with new §25.504.
Dr. Hurlbut has determined that for each year of the first five years the
proposed amended §25.502 and the proposed new §25.504 will be in
effect, there will be no effect on a local economy, and therefore no local
employment impact statement is required under Texas Government Code §2001.022.
Dr. Hurlbut has determined that proposed amended §25.502 and the proposed
new §25.504 will not have an adverse economic effect on small businesses
or micro-businesses.
Dr. Schubert has determined that for each year of the first five years
the proposed new §25.505 will be in effect, the public benefit expected
as a result of adoption of the proposed rule is assurance of resource adequacy
in the ERCOT wholesale electricity market. In an energy-only market, like
ERCOT, the economic incentive to build new capacity comes from scarcity-induced
price signals rather than direct payments that are charged to all load-serving
entities (LSEs), as is done in some other regions. Spot market prices are
more volatile in an energy-only market, and the expectation of price volatility
should dissuade an LSE from relying on the spot market for a large portion
of its regular demand. Greater reliance on bilateral power purchase agreements
should increase suppliers' ability to plan for new capacity and to efficiently
manage their existing capacity.
A significant characteristic of an energy-only market is that it encourages
demand response. To the extent that demand response reduces peak demand, additional
public benefits expected to be produced by the new section include reduced
transmission costs, greater reliability, and better use of generation resources.
Dr. Schubert has determined that for each year of the first five years
the proposed new §25.505 will be in effect, there are no probable economic
costs to persons required to comply with new §25.505, although ERCOT
will incur small costs to administer the scarcity pricing mechanism.
Dr. Schubert has determined that for each year of the first five years
the proposed new §25.505 will be in effect, there will be no effect on
a local economy, and therefore no local employment impact statement is required
under Texas Government Code §2001.022.
Dr. Schubert has determined that the proposed new §25.505 will not
have an adverse economic effect on small businesses or micro-businesses.
The commission staff will conduct a public hearing on this rulemaking under
the Administrative Procedure Act, 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, May 2, 2006, at 9:30
a.m.
Comments on the proposed amended section and new sections (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 amendment and sections. The commission will
consider the costs and benefits in deciding whether to adopt the amendment
and sections. All comments should refer to Project Number 31972.
This amendment and these new sections are proposed under the
Public Utility Regulatory Act, Texas Utilities Code Annotated §14.002
(Vernon 1998, Supplement 2005) (PURA), which provides the Public Utility Commission
with the authority to adopt and enforce rules reasonably required in the exercise
of its powers and jurisdiction; and specifically, PURA §35.004, which
requires that the commission ensure that ancillary services necessary to facilitate
the transmission of electric energy are available at reasonable prices with
terms and conditions that are not unreasonably preferential, prejudicial,
predatory, or anticompetitive; PURA §39.001, which establishes the Legislative
policy to protect the public interest during the transition to and in the
establishment of a fully competitive electric power industry; PURA §39.101,
which establishes that customers are entitled to protection from unfair, misleading,
or deceptive practices, and gives the commission the authority to adopt and
enforce rules to carry out this provision; PURA §39.151, which requires
the commission to oversee and review the procedures established by an independent
organization, directs market participants to comply with such procedures,
and authorizes the commission to enforce such procedures; and PURA §39.157,
which directs the commission to monitor market power associated with the generation,
transmission, distribution, and sale of electricity and provides enforcement
power to the commission to address any market power abuses.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
35.004, 39.001, 39.101, 39.151, and 39.157.
§25.502.Pricing Safeguards in Markets Operated by the Electric Reliability Council of Texas.
(a) - (c)
(No change.)
(d)
Disclosure of offer prices. ERCOT shall publish on its
market information system:
(1) - (3)
(No change.)
(4)
The requirements of this subsection shall
terminate upon ERCOT's implementation of §25.505(f) of this title (relating
to Resource Adequacy in the Electric Reliability Council of Texas Power Region).
(e) - (g)
(No change.)
(h)
System-wide offer cap. A supply offer shall not exceed
$1,000/MWh or $1,000/MW/h.
This offer cap shall be terminated on the
date that the system-wide offer caps are implemented as required in §25.505(i)(6)
of this title. ERCOT shall terminate its use of the Modified Competitive Solution
Method, ordered by the commission in Docket No. 24770, on September 1, 2006.
§25.504.Wholesale Market Power in the Electric Reliability Council of Texas Power Region.
(a)
Application. This section applies to all generation entities
in the Electric Reliability Council of Texas (ERCOT). This section defines
the term "market power," as that term is used in §25.503 of this title
(relating to Oversight of Wholesale Market Participants).
(b)
Definitions. The following terms, when used in this section,
shall have the following meanings, unless the context or specific language
of a section indicates otherwise:
(1)
Generation entity--An entity that controls a generation
resource. An entity affiliated with a generation entity shall be considered
part of that generation entity.
(2)
Market power--The ability to control prices or exclude
competition in a relevant market.
(c)
Exemption based on installed generation capacity. A single
generation entity that controls less than 5% of the installed generating capacity
in ERCOT, as the term "installed generating capacity" is defined in §25.5
of this title (relating to Definitions), is deemed not to have ERCOT-wide
market power. Controlling 5% or more of the installed generating capacity
in ERCOT does not, of itself, mean that a generating entity has market power.
(d)
Withholding of production. Prices offered by a generation
entity with market power may be a factor in determining whether the entity
has withheld production. A generation entity with market power that prices
its services substantially above its marginal cost may be found to be withholding
production; offer prices that are not substantially above marginal cost do
not constitute withholding of production.
(e)
Voluntary mitigation plan. Any generation entity may submit
to the commission a mitigation plan for ensuring compliance with §25.503(g)(7)
of this title or with the Public Utility Regulatory Act §39.157(a). Any
plan that is submitted may be revised, with the agreement of the market participant,
and approved or rejected by the commission. Adherence to a plan approved by
the commission constitutes an absolute defense against an allegation of market
power abuse with respect to behaviors addressed by the plan. Failure to adhere
to a plan approved by the commission does not, of itself constitute a violation
of §25.503(g)(7) of this title, but may be treated in the same manner
as any other violation of a commission order.
§25.505.Resource Adequacy in the Electric Reliability Council of Texas Power Region.
(a)
General. The purpose of this section is to prescribe mechanisms
that the Electric Reliability Council of Texas (ERCOT) shall establish to
provide for resource adequacy in the energy-only market design that applies
to the ERCOT power region. The mechanisms are intended to encourage market
participants to build and maintain a mix of resources that sustain adequate
supply of electric service in the ERCOT power region, and to encourage market
participants to take advantage of practices such as hedging, long-term contracting
between market participants that supply power and market participants that
serve load, and price responsiveness by end-use customers.
(b)
Definitions. The following terms, when used in this section,
shall have the following meanings, unless the context indicates otherwise:
(1)
Generation entity--an entity that owns or controls a generation
resource.
(2)
Load entity--an entity that owns or controls a load resource,
including, but not limited to, a load acting as a resource (LaaR) or a balancing
up load (BUL), as those terms are defined in the ERCOT Protocols.
(3)
Resource entity--an entity that owns or controls a generation
or load resource.
(c)
Statement of opportunities (SOO). ERCOT shall publish an
SOO that provides market participants with a projection of the capability
of existing and planned electric generation resources, load resources, and
transmission facilities to reliably meet ERCOT's projected needs. An SOO published
in even-numbered years shall use a ten-year study horizon and be published
by December 31 of those years. An SOO published in odd-numbered years shall
use a five-year study horizon and be published on or around October 1 of those
years. ERCOT shall prescribe reporting requirements for generation entities
and transmission service providers (TSPs) to report to ERCOT their plans for
adding new facilities, upgrading existing facilities, and mothballing or retiring
existing facilities. ERCOT also shall prescribe reporting requirements for
load entities to report to ERCOT their plans for adding new load resources
or retiring existing load resources.
(d)
Projected assessment of system adequacy (PASA). Beginning
no later than September 1, 2006, ERCOT shall provide market participants with
information to assess the adequacy of resources and transmission facilities
to meet projected demand in the following two reports:
(1)
Each month, ERCOT shall publish a Medium-Term PASA for
each week of the subsequent three years beginning with the week after the
Medium-Term PASA is published. At a minimum, each Medium-Term PASA shall include
the following information:
(A)
Load forecast by ERCOT zone or area;
(B)
Ancillary service requirements;
(C)
Transmission constraints, including planned outages; and
(D)
Aggregated information on the availability of resources,
including load resources.
(2)
Each day, ERCOT shall publish a Short-Term PASA for each
hour for the seven days beginning with the day the Short-Term PASA is published.
At a minimum, each Short-Term PASA shall include the following information:
(A)
Load forecast by ERCOT zone or area;
(B)
Ancillary service requirements;
(C)
Transmission constraints, including planned outages; and
(D)
Aggregated information on the availability of resources,
including load resources.
(e)
Filing of resource and transmission information with ERCOT.
ERCOT shall prescribe reporting requirements for resource entities and TSPs
for the preparation of PASAs. At a minimum, the following information shall
be reported to ERCOT:
(1)
TSPs shall provide ERCOT with information on planned and
existing transmission outages.
(2)
Generation entities shall provide ERCOT with information
on planned and existing generation outages.
(3)
Load entities shall provide ERCOT with information on planned
and existing availability of LaaRs, specified by type of ancillary service,
and BULs.
(4)
Generation entities shall provide ERCOT with a complete
list of generation resource availability and performance capabilities, including,
but not limited to:
(A)
the net dependable capability of generation resources;
(B)
projected output of non-dispatchable resources such as
wind turbines, run-of-the-river hydro, and solar power; and
(C)
output limitations on generation resources that result
from fuel or environmental restrictions.
(5)
Load serving entities (LSEs) shall provide ERCOT with complete
information on load response capabilities pursuant to bilateral agreements
between LSEs and their customers.
(f)
Publication of resource and load information in ERCOT markets.
To increase the transparency of the ERCOT-administered markets, ERCOT shall
post at a publicly accessible location on its website, beginning no later
September 1, 2006, the information required pursuant to this subsection.
(1)
The following information in aggregated form, for each
settlement interval and for each area where available, shall be posted two
calendar days after the day for which the information is accumulated.
(A)
Quantities and prices of offers for energy and each type
of ancillary capacity service, in the form of supply curves.
(B)
Self-arranged energy and ancillary capacity services, for
each type of service.
(C)
Actual resource output.
(D)
Load and resource output for all entities that dynamically
schedule their resources.
(E)
During the operation of the market under a zonal market
design, scheduled load and actual load. During the operation of the market
under a nodal market design, firm scheduled load, scheduled load with "up
to" limits on congestion charges, and actual load.
(F)
During the operation of the market under a nodal market
design, the following day-ahead market information: load bids, including virtual
loads, in the form of day-ahead bid curves, and cleared load.
(2)
The following information in entity-specific form, for
each settlement interval, shall be posted as specified below.
(A)
During the operation of the market under a zonal market
design,
(i)
Portfolio offer curves for balancing energy and for each
type of ancillary service, for each area where available, shall be posted
48 hours after the day for which the information is accumulated.
(ii)
Other offer-specific information, as well as the amount
of capacity on each resource in excess of the resource's planned operating
level, self-arranged energy and ancillary capacity services, and actual resource
output, for each type of service and for each area where available shall be
posted 30 days after the day for which the information is accumulated.
(iii)
The information posted shall include the names of the
resources in the portfolio that were committed, the name of the entity submitting
the information, the name of the entity controlling each resource in the portfolio.
(B)
During the operation of the market under a nodal market
design,
(i)
Virtual offer curves (prices and quantities) and the other
offer curves (prices and quantities) for energy and for each type of ancillary
service, at each settlement point, shall be posted 48 hours after the day
for which the information is accumulated.
(ii)
Other resource-specific information, as well as self-arranged
energy and ancillary capacity services, and actual resource output, for each
type of service and for each resource at each settlement point shall be posted
30 days after the day for which the information is accumulated.
(iii)
The posted information shall be linked to the name of
the resource (or identified as a virtual offer), the name of the entity submitting
the information, and the name of the entity controlling the resource. If there
are multiple offers for the resource, ERCOT shall post the specified information
for each offer for the resource, including the name of the entity submitting
the offer and the name of the entity controlling the resource.
(C)
The load and generation resource output for each zone,
for each entity that dynamically schedules its resources, shall be posted
48 hours after the day for which the information is accumulated.
(D)
During the operation of the market under a zonal market
design, scheduled load and actual load for each zone. During the operation
of the market under a nodal market design, virtual load bids and the bid curve
for each load, firm scheduled load, scheduled load with "up to" limits on
congestion charges, and actual load for each settlement point. The information
shall be posted 48 hours after the day for which the information is accumulated
and shall be linked to the name of the entity submitting the information and
the name of the entity serving the load.
(E)
ERCOT shall use §25.502(e) of this title (relating
to Pricing Safeguards in Markets Operated by the Electric Reliability Council
of Texas) as the basis for determining the control of a resource and shall
include this information in its market operations data system.
(g)
Credit standards for qualified scheduling entities. ERCOT
shall maintain credit standards for qualified scheduling entities that are
consistent with this section.
(h)
Improving price responsiveness of load. ERCOT shall work
with market participants to create the necessary conditions for, and remove
impediments to, price response by load. As part of this process, ERCOT shall
file progress reports at the commission six, eighteen, and thirty months after
the effective date of this section that identify impediments to price response
by load, proposed solutions that are cost-effective in addressing those impediments,
and progress made in removing those impediments. The report shall include:
(1)
A review of the compatibility of existing load profiles
with market-based demand-side options, such as time-of-use pricing and direct
load control programs.
(2)
An estimate of the incremental costs of installing interval
data recording meters for commercial and industrial customers that use load
profiles for settlement.
(3)
A review of the ERCOT process for assigning a load profile
to a customer, to assess the compatibility of the current process with providing
appropriate price signals to loads; specifically addressing the range of profile
types in use, the accuracy of the profile assignment process, and identification
of the need for improvements.
(4)
A review of the ERCOT load profiling methodology to assess
the compatibility of the current methodology with providing appropriate price
signals to loads, specifically addressing whether true- or lagged-dynamic
profiles would improve the accuracy of those price signals.
(i)
Scarcity pricing mechanism (SPM). ERCOT shall administer
the SPM. The SPM shall take effect on January 1, 2007, unless the commission
by order changes this date. The SPM shall operate as follows:
(1)
The SPM shall operate on an annual resource adequacy cycle,
starting on January 1 and ending on December 31 of each year.
(2)
For each day of the annual resource adequacy cycle, the
peaking operating cost (POC) shall be 10 times the daily Houston Ship Channel
gas price index for the previous business day. The POC is calculated in dollars
per megawatt-hour (MWh).
(3)
For the purpose of this section, the real-time energy price
(RTEP) shall be measured as the price at an ERCOT-calculated ERCOT-wide hub.
(4)
In the annual resource adequacy cycle, the peaker net margin
(PNM) shall be calculated as:
(5)
Each day ERCOT shall post at a publicly accessible location
on its website the updated value of the PNM, in dollars per megawatt (MW).
(6)
The system-wide offer caps shall be as follows:
(A)
Beginning March 1, 2007, the high system-wide offer cap
(HCAP) shall be $2,000 per MWh and $2,000 per MW per hour. The low system
offer cap (LCAP) shall be set on a daily basis at the higher of:
(i)
$500 per MWh and $500 per MW per hour; or
(ii)
50 times the daily Houston Ship Channel gas price index
of the previous business day, expressed in dollars per MWh and dollars per
MW per hour.
(B)
Beginning March 1, 2008, the HCAP shall be $2,500 per MWh
and $2,500 per MW per hour.
(C)
Beginning March 1, 2009, the HCAP shall be $3,000 per MWh
and $3,000 per MW per hour.
(D)
At the beginning of the annual resource adequacy cycle,
the system-wide offer cap shall be set equal to the HCAP and maintained at
this level as long as the PNM during an annual resource adequacy cycle is
less than or equal to $150,000 per MW. If the PNM exceeds $150,000 per MW,
the system-wide offer cap shall be reset at the LCAP for the remainder of
the annual resource adequacy cycle.
(E)
The Independent Market Monitor, as part of its responsibilities
pursuant to Public Utility Regulatory Act §39.1515(h), may conduct an
annual review of the effectiveness of the SPM.
(j)
Authority to enter into emergency load response (ELR) contracts
to maintain reliability. If ERCOT concludes that the available generation
and load resources are insufficient to maintain reliability, ERCOT may enter
into ELR contracts with load resources to procure sufficient voluntary load
curtailment under emergency conditions. ERCOT shall enter into ELR contracts
pursuant to this subsection under the following conditions:
(1)
By October 1, 2006, ERCOT shall file a report with the
commission that provides an assessment of the types of load resources that
it would prefer to use for ELR contracts.
(2)
ERCOT shall use the information provided in the PASAs as
a benchmark for determining the need for ELR contracts.
(3)
The ELR contracts shall have terms no shorter than 90 days
but no longer than one year.
(4)
ERCOT shall deploy ELR resources only as part of an Emergency
Electric Curtailment Plan.
(5)
ERCOT shall recover the costs of ELR contracts on a system-wide
energy / load ratio share basis.
(6)
This subsection does not limit ERCOT purchases for other
reasons, such as the following:
(A)
routine purchases of ancillary capacity services and energy
in the ERCOT day-ahead and real-time markets;
(B)
reliability unit commitment;
(C)
black-start service; and
(D)
reliability must-run or similar contracts that address
local reliability concerns.
(k)
Development and implementation. ERCOT shall use a stakeholder
process to develop protocols that comply with this section. Nothing in this
section prevents the commission from taking actions necessary to ensure that
system reliability in ERCOT is maintained, including actions that are otherwise
inconsistent with the other provisions in this section.
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 February 23, 2006.
TRD-200600968
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 9, 2006
For further information, please call: (512) 936-7223
Subchapter P. TEXAS UNIVERSAL SERVICE FUND
(3)
] Headroom--The difference between
the average price to beat (in cents per kilowatt hour (kWh)) and the sum of
the average non-bypassable charges or credits approved by the commission in
a proceeding pursuant to PURA §39.201, or PURA Subchapter G (in cents
per kWh) and the representative power price (in cents per kWh). Headroom may
be a positive or negative number. A separate headroom number shall be calculated
for the typical residential customer and the typical small commercial customer.
The calculation for the typical residential customer shall assume 1,000 kWh
per month in usage. The calculation of the typical small commercial customer
shall assume 35 kilowatts (kW) of demand and 15,000 kWh per month in usage.
(4)
] Nonaffiliated REP--Any competitive
retailer conducting business in a transmission and distribution utility's
(TDU's) certificated service territory that is not affiliated with that TDU
unless the competitive retailer is a successor in interest to a retail electric
provider affiliated with that TDU.
(5)
] Peak demand--The highest 15-minute
or 30-minute demand recorded during a 12-month period.
(6)
] Price to beat period--The price
to beat period shall be from January 1, 2002 to January 1, 2007. In a power
region outside the Electric Reliability Council of Texas (ERCOT) if customer
choice is introduced before the date the commission certifies the power region
pursuant to PURA §39.152(a) are met, the price to beat period continues,
unless changed by the commission in accordance with PURA Chapter 39, until
the later of 60 months after the date customer choice is introduced in the
power region or the date the commission certifies the power region as a qualified
power region.
(7)
] Provider of last resort (POLR)--As
defined in §25.43 of this title (relating to Provider of Last Resort).
(8)
] Registration agent--As defined
in §25.454 of this title (relating to Rate Reduction Programs).
(9)
] Representative power price--The
simple average of the results of:
(10)
] Residential customer--Retail
customers classified as residential by the applicable transmission and distribution
utility tariff or, in the absence of classification under a residential rate
class, those retail customers that are primarily end users consuming electricity
for personal, family or household purposes and who are not resellers of electricity.
(11)
] Small commercial customer--A
non-residential retail customer having a peak demand of 1,000 kilowatts (kW)
or less. For purposes of this section, the term small commercial customer
refers to a metered point of delivery. Additionally, any non-residential,
non-metered point of delivery with peak demand of less than 1,000 kW shall
also be considered a small commercial customer. For purposes of subsection
(i) of this section, unmetered guard and security lights are not considered
small commercial customers unless such an account has historically been treated
as a separate customer for billing purposes.
(12)
] Transmission and distribution
utility--As defined in §25.5 of this title (relating to Definitions),
except for purposes of this section, this term does not include a river authority.
, the entity providing default
service in that area.
] The provisions of this section do not apply to
any affiliated REP serving non-paying residential and small non-residential
customers of competitive REPs except as otherwise specifically stated herein.
Upon the expiration of the price to beat period, a customer whose electric
service is terminated for non- payment under the provisions of §25.482
of this title shall be provided by the volunteer POLR REPs first and the non-volunteering
POLR providers second.
As of September 24, 2002, a non-paying residential
or small non-residential customer of an affiliated REP shall not be transferred
to the POLR selected under this section.
]
(4)
A large non-residential customer whose
service is terminated for non-payment shall not be transferred to the POLR
after September 24, 2002. Notwithstanding the foregoing, a non-paying large
non-residential customer may be transferred to the POLR if that customer is
receiving service under a contract entered into prior to September 24, 2002,
the original term of which has not expired at the time transfer to POLR is
requested, and if the contract makes no provision for waiver of the customer's
right to be transferred to the POLR for non-payment.
]
(5)
Load ratio--The amount of load for a
particular customer class served by a REP on a nationwide basis in comparison
to the amount of load for that class in areas in Texas where customer choice
is in effect. This determination is to be made by dividing the REP's nationwide
total megawatt-hour sales to the customer class during the prior year by the
total megawatt-hour sales to such class in areas in Texas where customer choice
was in effect during any portion of the prior year.
]
(6)
] Non-discountable rate--A rate
that does not allow for any deviation from the price offered to all customers
within a class, except as provided in §25.454 of this title (relating
to Rate Reduction Program).
(7)
] POLR area--The service area
of a TDU in an area where customer choice is in effect, except that the POLR
area for
AEP-Texas Central
[
Central Power and Light
]
Company shall be deemed to include the area served by Sharyland Utilities,
L.P.
(8)
] Provider of last resort (POLR)--A
REP certified in Texas that has been designated by the commission to provide
a basic, standard retail service package in accordance with this section to
customers that are not being served by a REP for reasons other than non- payment.
There may be multiple POLR providers in a TDU service area.
(9)
] Residential customer--
Retail customers classified as residential by the applicable transmission
and distribution utility tariff or, in the absence of classification under
a residential rate class, those retail customers that are primarily end users
consuming electricity for personal, family, or household purposes and who
are not resellers of electricity.
[
A residential customer as defined
in §25.41 of this title (relating to the Price to Beat).
]
(10)
] Small non-residential customer
less than 50 kilowatts (kW)--A non-residential retail customer having a peak
demand of less than 50 kW.
[
A small commercial customer as defined
in §25.41 of this title.
]
three
] classes of customers: residential, small non-residential
less than 50 kW, small non-residential greater than or equal to 50 kW
,
and large non-residential.
POLR
] may be designated
to serve any or all of the
four
[
three
]customer classes
in a POLR area. Within the customer class it is designated to serve, the
POLRs
[
POLR
] shall provide service to the following customers:
POLR
] shall offer a basic,
standard retail service package, which will be limited to:
POLR
] shall, in accordance
with §25.108 of this title (relating to Financial Standards for Retail
Electric Providers Regarding the Billing and Collection of Transition Charges),
provide billing and collection duties for REPs who have defaulted on payments
to the servicer of transition bonds or to TDUs.
(2)
] A POLR shall abide by the applicable
customer protection rules as provided for under Subchapter R of this chapter.
In addition, the POLR shall be held to the following general standards:
POLR
] shall inform any
customer transferred to it
,
that
the POLR
[
it
]
is now providing service to the customer and
shall
disclose all
charges for which the customer will be responsible;
POLR
] shall
provide a commission-maintained list of certified REPs to
every
[
any
] customer [
who inquires about selecting a provider
];
and,
POLR
] may not require
that a customer sign up for a minimum term as a condition of service, except
that if the POLR offers a level or average payment plan in accordance with
Subchapter R of this chapter, a residential or small non-residential customer
who elects to receive service under such plan may be required to sign up for
a minimum term of no more than six months.
Forms.
] The
standard terms of service
prescribed
[
forms
] in
subparagraphs
[
subparagraph
] (A) - (C) of this paragraph are effective for all POLR service [
rendered after December 31, 2002
]. These forms may [
only
]
be changed through the rulemaking process and are available in the commission's
Central Records Division and on the commission's website at www.puc.state.tx.us.
Agreement
],
Provider of Last Resort (POLR) Residential Service:
Agreement
],
Provider of Last Resort (POLR) Small Non-Residential Service:
Agreement
],
Provider of Last Resort (POLR) Large Non-Residential Service:
Provision of information to customers.
] The
POLRs
[
POLR
] shall provide each new customer the
standard
terms of service [
agreement
] applicable to the specific
customer. Such
standard
terms of service [
agreements
]
shall be updated as required under §25.475(d) of this title (relating
to Information Disclosures to Residential and Small Commercial Customers.)
POLR selected for areas
where customer choice is in effect. The commission
] shall designate
[
certified
] REPs
that are eligible
to serve as POLRs
in areas of the State in which customer choice is in effect, except that the
commission shall not designate
POLRs
[
the POLR
] in the
service areas of MOUs or electric cooperatives unless an electric cooperative
has delegated its POLR designation authority to the commission in accordance
with subsection (p) of this section.
Process.
] The commission will
select
REPs that will provide
[
solicit bids for
]POLR service for
two-year terms as specified in paragraph (3) of this subsection.
The
[
Bids shall be solicited from REPs that are eligible to provide
POLR service under the provisions of subsection (h) of this section. The process
for evaluating such bids is specified in subsection (i) of this section and
the basis upon which bids shall be compared is specified in subsection (k)(3)
of this section. If no eligible bids for a POLR customer class in a POLR area
are submitted, the POLR shall be selected by lottery under the procedures
set forth in subsection (j) of this section and the
] POLR rate
shall be
established under the provisions of subsection (k) of this
section.
Term.
] POLRs shall serve two-year terms beginning
in January of each odd-numbered year. The initial term for POLR service in
areas of the state where retail choice is not in effect as of the effective
date of the rule shall be set at the time POLRs are initially selected in
such areas.
Information requirements.
The commission may require a REP and its affiliates to
] provide information
to the commission necessary to establish
their
[
that REP's
] eligibility to serve as POLR.
All REPs shall file, by July 10th,
of each even numbered year, by service area, information on the classes of
customers they provide service to, and the number of customers they serve.
They shall also provide information on their capabilities to provide service
to additional customers, their financial condition, and whether they are interested
in providing POLR service as a volunteer POLR REP, and, if so, the customer
classes and areas where they are interested in providing the service.
Specific
information received from a REP
under this subsection
[
that
is responsive to such a request by the commission
]shall be treated
confidentially if it is submitted to the commission in accordance with the
provisions of §22.71(d) of this title (relating to Filing of Pleadings,
Documents and Other Materials). However, the commission's determination regarding
eligibility of a REP to serve as POLR under the provisions of this section
shall not be considered confidential information.
Criteria. During the term of
the price to beat for a particular customer class, an affiliated REP is ineligible
to serve as POLR for that class in the POLR area defined by the boundaries
of its affiliated TDU, unless the affiliated REP submits a bid to provide
POLR service in the POLR area defined by the boundaries of its affiliated
TDU at the price to beat.
] A REP is [
also
] ineligible to
provide POLR service to a particular customer class in a POLR area if:
or that
] REP's certificate
has been suspended or revoked by the commission
, or the REP's certificate
is deemed suspended pursuant to §25.107(i) of this title (relating to
Certification of REPs)
;
The REP's load ratio for the particular class is
less than 1.0%
];
(C)
] The commission does not reasonably
expect the REP to be able to meet the criteria set forth in subparagraph (B)
of this paragraph during the entirety of the POLR term;
(D)
] On the [
expected
]
date of
the commencement of the POLR term
[
bid submittal
],
the REP or its predecessor, including a REP that has assumed the responsibilities
of another REP, will not have served customers in Texas for at least 18 months;
(E)
] The REP
is not certificated
to serve or
does not serve the applicable customer class
, or does
not have an agreement with the service area TDU
[
in Texas
];
(F)
] The REP's customers are limited
to its own affiliates; [
or
]
Publication of notice of eligibility.
] For
each POLR term scheduled to commence in January of the next year, [
except
for the year 2003,
] the commission shall publish the names of all of
the REPs eligible to provide POLR service for each customer class in each
POLR area.
A REP may challenge its eligibility determination within five
business days of the notice of eligibility only by submitting to commission
staff additional documentation showing that the data upon which its initial
eligibility determination was made is incorrect and that the errors resulted
in an incorrect eligibility status. commission staff shall verify the additional
documentation and, if accurate, recalculate the REP's eligibility. Commission
staff will notify the REP of any change in eligibility status within 10 business
days of the receipt of the additional documentation. A REP may then appeal
to the commission through a contested case if the REP does not agree with
the staff determination of eligibility. The contested status will not delay
the volunteer POLR list or the selection of the POLR providers.
[
The notice shall be published in the
Texas Register
prior to or contemporaneously with publication of the invitation for
bids. For 2003, only affiliated REPs shall be considered eligible REPs.
]
Bid process. Initially,
a competitive bid process will be used to select the POLR for each customer
class in each designated POLR area.
]
Invitation to bid. Before the expiration of a term
of POLR service in a POLR area, the commission shall issue an invitation for
bids for POLR service for each customer class in the POLR area. Notice of
the bid invitation, any submission requirements, the submission deadline,
and the project number assigned to the bid process for that POLR area shall
be published in the Texas Register. A separate project number shall be designated
for each POLR area.
]
Bidder qualifications.
] A REP that has met
the eligibility requirements of subsection (h) of this section shall be
eligible for the volunteer POLR REP list
[
considered a qualified
bidder
].
Submission of bids.
]
(A)
Separate bids required. A bidder may
submit a bid to serve any of the three customer classes in a POLR area. Bids
for each customer class in a POLR area shall be submitted separately. A REP
may submit a separate bid for POLR service for each customer class and POLR
area for which it seeks to provide service.
]
(B)
Filing and content. Each bid shall be
filed in the appropriate project number on or before the date and time specified
in the bid invitation; identify only one POLR area; specify only one customer
class; include a bid in conformance with the rate structure for the class;
and not contain any information that will be considered, after the closing
date for submission of all bids, to be confidential or proprietary by the
filing party.
]
(C)
Designation of preference. A REP whose
load ratio for a particular class is less than 5.0% that submits more than
one bid for POLR service for that class may include in its bid a statement
indicating its order of preference in POLR areas.
]
Filing under
seal. Prior to the closing date specified in the bid invitation, bids must
be filed under seal for the limited purpose of ensuring the confidentiality
of the bids submitted.
]
Bid opening
and public comment.
]
(A)
All bids filed under seal shall be opened
and filed publicly by commission staff in the applicable project number by
5:00 p.m. on the third business day following the submission date identified
in the bid invitation.
]
(B)
If the bid opening is cancelled, the
bids filed under seal will be returned unopened to the bidders.
]
(C)
Interested persons may submit comments
on bids in the applicable project up to the 10th calendar day after the bid
submission deadline specified in the bid invitation. Interested persons may
submit reply comments on bids up to the 15th calendar day after the submission
deadline specified in the invitation. All comments and reply comments shall
be filed in the applicable project.
]
(6)
Evaluation of bids.
]
(A)
Bids that have been rejected pursuant
to subparagraph (B) of this paragraph shall not be evaluated. The bids received
for each customer class in each POLR area shall be evaluated on the basis
of price in accordance with the provisions of subsection (k)(3) of this section.
If two or more bidders bid the same lowest price, the lowest bidder shall
be determined by lottery in accordance with the provisions of subsection (j)
of this section, with the pool of lottery candidates limited to the bidders
submitting tie bids. If, with respect to a particular class of customers,
a bidder described in paragraph (3)(C) of this subsection submits the lowest
bid for that class of customers in two or more POLR areas, staff shall determine
that the bidder submitted the lowest price in the POLR area according to the
preference statement submitted by the bidder with its bids. If the bidder
did not state a preference or the preferences stated are irreconcilable, the
bidder shall be deemed to prefer to serve in the POLR area to which the lowest
project number has been assigned.
]
(B)
The commission shall reject a bid for
any of the following reasons:
]
(i)
The bidder is not qualified.
]
(ii)
The bid was received by the commission
after the date and time specified in the bid invitation.
]
(iii)
The bid did not conform to a requirement
described in the bid invitation.
]
(iv)
The rate structure submitted in the
bid deviated from the rate structure applicable to the customer class or the
bid price exceeds the maximum level specified in subsection (k)(3) of this
section.
]
(v)
The bidder asserts to the commission
that the bid contains information considered, after the closing date for submission
of all bids, to be confidential or proprietary.
]
(vi)
In the event a bidder described in paragraph
(3)(C) of this subsection submits two or more bids for the same customer class
in different POLR areas then all bids from that bidder for that customer class,
other than the preferred bid, shall be rejected.
]
(7)
Report to the commission. Staff shall
report on the bid process for each POLR area to the commission. The report
shall identify the POLR customer classes and POLR areas for which no bids
were submitted. The report shall also identify all rejected bids and state
the reason why each bid was rejected, describe conforming bids, and summarize
the comments and reply comments received. For each customer class in each
POLR area, the report shall include a recommendation by staff that POLR service
be awarded to the bidder that offered the lowest price in a conforming bid
or that the POLR for a given customer class and POLR area should be selected
by lottery because no eligible bids were received.
]
(8)
Commission action. For a particular POLR
class and POLR area, the commission shall either award a bid consistent with
the provisions of this section or reject all bids and direct that the POLR
for that customer class and POLR area be determined by lottery.
]
Lottery
]. The provisions of this subsection shall govern the manner in which
the non-volunteering POLRs
[
a lottery to select a POLR
] for
a given POLR area and customer class
are
[
is
]
selected
[
conducted
].
Lottery candidacy. The commission shall designate
a pool of lottery candidates for each customer class in each POLR service
area. Every REP eligible to serve as a POLR is a candidate for the lottery
unless:
]
(A)
By virtue of having successfully bid
for POLR service, the REP will be serving as POLR for that customer class
in two or more service areas in January of the next year; or
]
(B)
The REP's load ratio for the customer
class is less than 5.0% and the REP will be serving as POLR for the customer
class in another area during the upcoming POLR term
]
Elimination from lottery pool. A REP otherwise eligible for the
lottery pool that will be serving a particular customer class as POLR during
the upcoming term in the POLR area defined by the boundaries of CenterPoint
Energy Houston Electric shall be eliminated from the lottery pool for that
class for the POLR area defined by the boundaries of the Oncor Electric Delivery
Company. Similarly, a REP otherwise eligible for the lottery pool that will
be serving a particular customer class as POLR during the upcoming term in
the POLR area defined by the boundaries of the Oncor Electric Delivery Company
shall be eliminated from the lottery pool for that class for the POLR area
defined by the boundaries of CenterPoint Energy Houston Electric.
]
Drawing. At a time and
date noticed by the commission in the Texas Register, a separate drawing will
be held for each customer class in each POLR area for which a POLR was not
selected by bid. The drawings shall be held in the order of the project numbers
assigned to the POLR service areas and interested persons may attend. The
names of the lottery candidates shall be written on separate pieces of paper
of identical size and color. A staff member shall place the names of the lottery
candidates in a receptacle. A commission representative shall draw a piece
of paper from the receptacle. The REP whose name is written on the piece of
paper shall serve as the POLR for that customer class in that POLR area at
the rate specified in subsection (k)(4) of this section.
]
Components of POLR rate when service awarded by bid. The provisions
of this paragraph apply to the POLR rate when POLR service is awarded by bid.
The POLR rate for the residential and small non-residential customer classes
shall be either the price to beat or a rate consisting of non-bypassable charges,
a monthly customer charge that does not change during the term of the POLR,
an energy charge, and, for small and large non-residential customers, a demand
charge. For residential and small non-residential customers, the applicable
standard price to beat rate shall be a floor on the POLR rate and the POLR
rate may not fall below the PTB. For large non- residential customers, the
POLR rate for large non-residential customers shall consist of non- bypassable
charges, a monthly customer charge that does not change during the term of
the POLR, an energy charge, and a demand charge.
]
Elements of a
bid.
]
(A)
Residential customer class. Each bid
for POLR service for the residential customer class shall be either a bid
to serve customers at the price to beat or a bid that includes:
]
(i)
A monthly customer charge that shall
not change during the POLR term and that customer charge may be zero dollars;
and
]
(ii)
An energy charge subject to adjustment
under the provisions of subsection (l) of this section, expressed as cents
per kilowatt-hour (kWh). The energy charge may be differentiated into peak
months (May through October) and off-peak months (November through April).
]
(B)
Small non-residential customer class.
Each bid for POLR service for the small non- residential class shall be either
a bid to serve customers at the price to beat or shall include the components
for bids for the residential customer class as set forth in subparagraph (A)
of this paragraph and a demand charge that may be zero dollars.
]
(C)
Large non-residential customer class.
Each bid for POLR service for the large non- residential customer class shall
include:
]
(i)
A monthly customer charge that shall
not change during the POLR term and that customer charge may be zero dollars;
]
(ii)
A demand charge that may be zero dollars;
and
]
(iii)
The percent over the energy reference
price specified by the commission that the bidder will charge for energy.
For POLR areas in the Electric Reliability Council of Texas (ERCOT), the energy
reference price shall be the market clearing price for energy (MCPE) determined
on the basis of 15-minute intervals. For POLR areas outside of ERCOT, the
commission shall specify the energy reference price prior to the inception
of retail customer choice.
]
(3)
Comparison and rejection of bids. Bids
for POLR service for residential and small non- residential service shall
be compared on the basis of price as specified in this paragraph.
]
(A)
Residential customer class. Bids for
POLR service for residential customers shall be compared assuming monthly
residential energy usage of 1000 kWh. If a bid for POLR service for this average
usage level exceeds 125% of the applicable standard residential price to beat
rate for that usage level at the time bids are submitted, the bid shall be
rejected. For purposes of this rule, the standard residential price to beat
rate for residential service in each POLR area shall refer to the following
price to beat tariffs, as amended or replaced:
]
Figure: 16 TAC §25.43(k)(3)(A)
]
(B)
Small non-residential class. Bids for
POLR service for small non-residential customers shall be compared assuming
a demand level of 35 kW and a monthly usage level of 12,500kWh. If the POLR
rates bid for these average usage levels exceed 125% of the applicable standard
commercial price to beat rate for both usage levels at the time bids are submitted,
the bid shall be rejected. For purposes of this rule, standard commercial
price to beat rate shall refer to the following price to beat tariffs, as
amended or replaced:
]
Figure: 16 TAC §25.43(k)(3)(B)
]
(C)
Large non-residential class. Bids for
POLR service for large non-residential customers shall be compared assuming
a monthly demand of 2.5 MW and a monthly usage level of 1,000,000 kWh.
]
(4)
POLR rates where POLR selected by lottery.
This paragraph specifies the POLR rates that will be charged in a POLR area
when the POLR is selected by lottery.
]
(A)
Residential and small non-residential
customer classes. The rate charged by a POLR selected by lottery shall be
125% of the applicable standard price to beat rate.
]
(B)
Large non-residential class. The rate
charged by a POLR selected by lottery shall be non- bypassable charges plus
150% of the applicable energy reference price as determined under paragraph
(2)(C)(iii) of this subsection and a monthly customer charge of $2897. The
minimum energy reference price shall be $7.25 per megawatt hour.
]
(5) Good cause adjustment to POLR rates.
] On a showing of good cause, the commission may permit the POLR to
adjust the POLR rate, if necessary to ensure that the rate is sufficient to
allow the POLR to recover its costs of providing service. Notwithstanding
any other commission rule to the contrary, POLR rates may be adjusted on an
interim basis for good cause shown and after at least three days' notice and
an opportunity for hearing on the request for interim relief. [
Alternatively,
the commission may rebid POLR service and relieve the current POLR of its
POLR responsibilities. If POLR service is rebid, the process specified in
subsection (i) of this section shall be followed except that eligible REPs
shall be those REPs identified in the last list that was published, with the
POLR that is being relieved of its duties deleted from the list. If the commission
elects to rebid POLR service and the bid process is unsuccessful, the commission
may reconsider adjusting the POLR rates or select an alternate POLR provider
by lottery in accordance with the provisions of subsection (j) of this section.
]
Adjustment to energy charge component of residential and small non-residential
POLR rates. The energy charge component of the POLR rate for the residential
and small non-residential customer classes shall be adjusted as specified
in this subsection if POLR service was awarded by bid.
]
(1)
Energy charge component reevaluated monthly.
The energy charge component of the POLR rate for the residential and small
non-residential customer classes shall be recalculated at the end of every
month during the POLR term in accordance with the provisions of paragraph
(2) of this subsection. If the recalculated energy charge varies by more than
5.0% from the time the energy charge was bid or last adjusted, then the energy
charge of the POLR rate for the following month shall be equal to the recalculated
energy charge. If the recalculated energy charge does not vary by more than
5.0% from the time the energy charge was bid or last adjusted, then the energy
charge component shall not be adjusted for the following month. All adjustments
shall take place during the first billing cycle of the billing month following
the recalculation. Adjustments shall not occur during the customer's billing
month. The POLR shall submit its monthly rate to the commission at least 15
days prior to the beginning of the applicable month.
]
(2)
Energy charge calculation.
]
Figure: 16 TAC §25.43(l)(2)
]
(3)
Refunds. If in response to a complaint
or upon its own investigation, the commission determines that a POLR failed
to properly adjust the energy charge component of the POLR rate and as a result
overcharged its customers, the commission shall require the POLR to issue
refunds to the specific customers who were overcharged.
]
Marketing to POLR customers. An employee answering the POLR phone line will
read from a script to describe POLR service but may market the services of
its affiliates or any other REP that has entered into a marketing agreement
with the POLR. The POLR shall not discriminate between unaffiliated REPs in
the terms and conditions of any such marketing agreement. The POLR shall provide
to REPs and aggregators on at least a quarterly basis an updated mass customer
list of customers served by the POLR containing information similar to the
information that the registration agent is authorized to release under §25.472
of this title (relating to Privacy of Customer Information). The POLR shall
not be required to comply with the provisions of §25.472(a)(2) of this
title prior to releasing its list of customers
]
Further, §25.472(d) of this title (relating to Privacy of Customer
Information) does not apply to such permitted customer transfers.
]
or
]
.
]
or,
the commission may appoint any
certified REP, other than a REP serving only its own affiliates, serving a
customer class in that area to become the POLR until a new POLR is selected
pursuant to the provisions of this rule. The rate for such POLR service shall
be the rate established pursuant to subsection (k)(4) of this section.
]
The notice
shall satisfy the requirements of §25.474(m) of this title in the event
that the customer fails to switch to another provider and is transferred by
the POLR to a competitive affiliate of the outgoing POLR or the customer fails
to switch to another provider and is transferred to the incoming POLR by the
outgoing POLR.
] The notice shall also include a phone number for the
outgoing POLR for the customer to call to obtain more information.
as well as the applicable price to beat rate
]. The notice shall specify
the deposit requirements of the competitive affiliate of the outgoing POLR
and shall state that other providers may also require a deposit and may require
payment of any amounts owed the provider for services previously rendered.
The notice shall state where the customer may find additional information
about offerings of other providers and shall inform the customer that, if
the customer does not select another provider or request service from the
incoming POLR by a specified date, that a competitive affiliate of the outgoing
POLR will continue to serve the customer at the rate specified in the notice.
§25.478(f)(4)
] of this title (relating to Credit Requirements
and Deposits).
a
] POLR
providers
under
PURA §41.053(c) in its certificated service area in accordance with this
section. After notice and opportunity for comment, the commission will, at
its option, accept or reject such delegation of authority. If the commission
accepts the delegation of authority, the following conditions will apply:
an invitation for bids to establish a POLR for a contiguous or
surrounding POLR area
];
If the competitive bidding process that includes the
]
electric cooperative certificated area [
fails
], the commission
will automatically reject the delegation of authority.
(d)
] of this title requiring issuance of a revised terms of service
statement to customers 45 days prior to any material change in the customer's
terms of service shall not apply with respect to the implementation of the
provisions of subsection (b)(3) of this section or §25.483(b) of this
title.
Subchapter S. WHOLESALE MARKETS
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS