Part 2.
PUBLIC UTILITY COMMISSION OF TEXAS
Chapter 25.
SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
Subchapter J. COSTS, RATES AND TARIFFS
1.
RETAIL RATES
16 TAC §25.236
The Public Utility Commission of Texas (commission) proposes
an amendment to §25.236, relating to Recovery of Fuel Costs. The proposed
amendment deletes §25.236(a)(4) which prohibits an electric utility from
recovering demand or capacity costs as fuel costs and adds §25.236(a)(8)
which permits a utility to request costs for capacity or demand charges related
to purchased power as eligible fuel costs under certain conditions. The proposed
amendment also revises §25.236(d)(2) to reflect changes to Public Utility
Regulatory Act (PURA) §36.058(c)(2) pertaining to affiliate transactions
and deletes §25.236(g) relating to final fuel reconciliations as well
as some other non-substantive changes. Project Number 29630 is assigned to
this proceeding.
Rosa Rohr, Staff Attorney with the Legal Division, has determined that
for each year of the first five-year period the proposed amendment is in effect
there will be no fiscal implications for state or local government as a result
of enforcing or administering the amended section.
Ms. Rohr has determined that for each year of the first five years the
proposed amendment is in effect the public benefit anticipated as a result
of enforcing the amended section will be to clarify how electric utilities
may recover reasonable purchased power costs and reduce the uncertainty associated
with the recovery of such costs. There will be no adverse economic effect
on small businesses or micro-businesses as a result of enforcing the amended
section. There is no anticipated economic cost to persons who are required
to comply with the amendment as proposed.
Ms. Rohr has also determined that for each year of the first five years
the proposed amendment 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 Tuesday,
April 18, 2006. The request for a public hearing must be received within 24
days after publication of the proposed amendment.
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 24 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 amendment. The commission invites specific comments regarding
the costs associated with, and benefits that will be gained by, implementation
of the proposed amended section. The commission will consider the costs and
benefits in deciding whether to adopt the amended section. All comments should
refer to Project Number 29630.
The 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; and specifically, PURA §36.204 which grants the commission
authority to allow additional incentives for purchased power and §36.205
which grants the commission authority over purchased power cost recovery.
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
36.204 and 36.205.
§25.236.Recovery of Fuel Costs.
(a)
Eligible fuel expenses. Eligible fuel expenses include
expenses properly recorded in the Federal Energy Regulatory Commission Uniform
System of Accounts, numbers 501, 503, 518, 536, 547, 555, and 565, as modified
in this subsection,
in effect on March 1, 2006
[
(1) - (3)
(No change.)
[(4)
For Account 555, the electric utility
may not recover demand or capacity costs.]
(4)
[
(5)
[
(6)
[
(A)
revenues from steam sales included in Accounts 504 and
456 to the extent expenses incurred to produce that steam are included in
Account 503; and
[(B)
revenues from wheeling transactions except
for non-ERCOT electric utilities; and]
(B)
[
[(D)
For electric utilities in ERCOT, revenues
from third parties for unplanned transmission service, such as ISO fees, losses,
and re-dispatch fees.]
(7)
[
(A)
the electric utility participates in a transmission region
governed by an independent system operator or a functionally equivalent independent
organization;
(B)
a generally-applicable tariff for firm and non-firm transmission
service is offered in the transmission region in which the electric utility
operates; and
(C)
the transaction is not found to be to the detriment of
its retail customers.
(8)
If the commission has authorized an electric
utility to include purchased power capacity costs in its base rates and if
the electric utility subsequently seeks to recover purchased power capacity
costs through eligible fuel, such costs shall be included as an eligible fuel
expense only to the extent that such costs are greater than the costs utilized
to fix the base rates of the electric utility, as adjusted for load growth.
(A)
Prior to requesting recovery of purchased power capacity
costs as eligible fuel expenses, the electric utility must petition the commission
for a determination of the amount of purchased power capacity costs already
in base rates.
(i)
The electric utility may not seek a determination under
this paragraph in a proceeding to change its fuel factor.
(ii)
The determination of the capacity costs in base rates
shall be based upon the filings in the electric utility's most recent base
rate proceeding. If the order in the electric utility's most recent base rate
proceeding does not specify an amount of capacity costs in base rates, then
an adjustment shall be made to the amount of purchased power capacity costs
originally requested by the electric utility, based on the percentage change
in base rate costs approved by the commission, compared to the utility's requested
costs.
(iii)
A load growth adjustment using the Texas retail average
12 coincident peak shall be applied to the amount of purchased power capacity
costs in the electric utility's base rates. This adjustment shall be the percentage
change from the test year of the most recent base rate case to the 12 months
preceding the filing of the petition for determination. The load growth adjustment
shall be recalculated whenever the fuel factor is adjusted.
(iv)
The amount of purchased power capacity costs in base rates
and the load growth adjustment are not subject to reconciliation in a fuel
reconciliation proceeding.
(v)
After the amount of purchased power capacity costs in the
electric utility's base rates is determined, the electric utility shall reflect
the determination in future fuel factor filings.
(B)
Recovery of purchased power capacity costs as eligible
fuel is prospective from the date the fuel factor takes effect.
(C)
The amount of purchased power capacity costs in the fuel
factor can be adjusted only in a fuel factor or base rate proceeding.
(D)
Beginning on the effective date of new base rates, all
capacity expenses associated with purchased power shall be excluded from base
rates and shall be treated as eligible fuel expenses, and the load growth
adjustment prescribed by subparagraph (A)(iii) of this paragraph shall no
longer be applied.
(E)
An electric utility subject to PURA §39.455 may not
recover purchased power capacity costs through its fuel factor until the expiration
of the rate rider pursuant to PURA §39.455.
(b) - (c)
(No change.)
(d)
Fuel reconciliation proceedings. Burden of proof and scope
of proceeding are as follows:
(1)
In a proceeding to reconcile fuel factor revenues and expenses,
an electric utility has the burden of showing that:
(A)
(No change.)
(B)
if its eligible fuel expenses for the reconciliation period
included an item or class of items supplied by an affiliate of the electric
utility, the prices charged by the supplying affiliate to the electric utility
were reasonable and necessary and no higher than the prices charged by the
supplying affiliate
for the same item or class of items
to its
other affiliates or divisions or
a nonaffiliated person within the same
market area or having the same market conditions
[
(C)
(No change.)
(2)
(No change.)
(e) - (f)
(No change.)
[(g)
Final fuel reconciliation. Notwithstanding
the provisions of subsections (b) and (f) of this section, each electric utility's
affiliated power generation company, except El Paso Electric Company's, shall
file after January 1, 2002, a final fuel reconciliation according to the schedule
in paragraphs (1) - (9) of this subsection. For the final fuel reconciliation,
the presiding officer shall set a procedural schedule that will enable the
commission to issue a final order in the proceeding within six months of the
filing date, except for Reliant Energy, Central Power and Light and TXU Electric
proceedings, which will be completed in eight months.]
[(1)
West Texas Utilities - June 1, 2002;]
[(2)
Reliant Energy - July 1, 2002;]
[(3)
Southwestern Public Service - August 1, 2002;]
[(4)
TXU Electric - October 1, 2002;]
[(5)
Central Power & Light - December 1, 2002;]
[(6)
Lower Colorado River Authority - February 1, 2003;]
[(7)
Entergy Gulf States, Inc. - March 1, 2003;]
[(8)
Texas-New Mexico Power Company - April 1, 2003; and]
[(9)
Southwestern Electric Power Company - May 1, 2003.]
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 March 8, 2006.
TRD-200601514
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 23, 2006
For further information, please call: (512) 936-7223
Subchapter F. REGULATION OF TELECOMMUNICATIONS SERVICE
16 TAC §26.134
The Public Utility Commission of Texas (commission) proposes
new §26.134, relating to the Market Test to be Applied in Determining
if Markets with Populations Less Than 30,000 Should Remain Regulated on or
after January 1, 2007. The proposed new rule will establish the requisite
market determinants for the commission to determine whether a market should
be regulated after January 1, 2007. Project No. 32169 is assigned to this
proceeding.
Larry D. Barnes and Jim Tourtelott of the commission's Communication Industry
Oversight Division and Legal Division, respectively, have 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. Barnes and Mr. Tourtelott have determined that for each year of the
first five years the proposed section is in effect the public benefit anticipated
as a result of enforcing the section will be effecting the requirements of
PURA §65.052(f) in order to promote a more orderly transition to a new
telecommunications environment. No adverse economic effects on small businesses
or micro-businesses are anticipated 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. Barnes and Mr. Tourtelott have 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 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, Friday, May 5, 2006, at 10:00
a.m.
Comments on the proposed new section may be submitted to the Filing Clerk,
Public Utility Commission of Texas, 1701 North Congress Avenue, P.O. Box 13326,
Austin, Texas 78711-33269, within 30 days after publication. Sixteen copies
of comments on the proposed section are required to be filed pursuant to §22.71(c)
of this title. Reply comments may be submitted 40 days after publication.
Comments should be organized in a manner consistent with the organization
of the proposed rule. All comments should refer to Project No. 32169.
In addition to providing comments on proposal as published, the commission
requests comments on the following: How should the commission account for
any situations in which robust telecommunications competition exists in a
market, but the type of competitors in the market does not fit the competitors
delineated in subsection (c)?
This section is proposed under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2005) (PURA) which provides the commission with the authority to make and
enforce rules reasonably required in the exercise of its powers and jurisdiction,
including rules of practice and procedure; and specifically, PURA §65.052(f),
which requires
inter alia
"not later than
November 30, 2006, the commission shall determine whether a market of an incumbent
local exchange company in which the population in the area included in the
market is less than 30,000 should remain regulated after January 1, 2007;
the commission by rule shall determine the market test to be applied in determine
whether the market should remain regulated;" and PURA §65.003(b) which
gives the commission authority to "adopt rules and conduct proceedings necessary
to administer and enforce this chapter, including rules to determine whether
a market should remain regulated, deregulated, or should be re-regulated."
Cross Reference to Statutes: Public Utility Regulatory Act §§14.002,
14.052, 65.003, and 65.052(f).
§26.134.Market Test to be Applied in Determining if Markets with Populations Less Than 30,000 Should Remain Regulated on or After January 1, 2007.
(a)
Purpose. The purpose of this section is to establish the
market tests to be applied in determining if markets with populations less
than 30,000 should remain regulated after January 1, 2007.
(b)
Application. This section applies to all incumbent local
exchange companies (ILECs), as defined in §26.5 of this title (relating
to Definitions).
(c)
Market Test--Markets as defined in Public Utility Regulatory
Act §65.002 with a population of less than 30,000 shall be deregulated
only if the ILEC providing services to such a market submits evidence demonstrating
that the population in the market is less than 30,000 and in addition to the
ILEC there are three competitors:
(1)
of which at least one competitor is an entity providing
residential telephone service in the market using facilities that the entity
or its affiliate owns; and
(2)
of which at least two competitors must be from two different
categories of the following:
(A)
a telecommunications provider that holds a certificate
of operating authority or service provider certificate of operating authority
and provides residential local exchange telephone service in the market;
(B)
a provider in that market of commercial mobile service
as defined by Section 332(d), Communications Act of 1934 (47 U.S.C. Section
151 et. seq.), Federal Communications Commission rules, and the Omnibus Budget
Reconciliation Act of 1993 (Pub. L. No. 103-66), that is not affiliated with
the incumbent local exchange company; and
(C)
a satellite telecommunications provider certified as an
eligible telecommunications carrier for the entire market pursuant to §26.418
of this title (relating to Designation of Common Carriers as Eligible Telecommunications
Carriers to Receive Federal Universal Service Funds).
(d)
Rural Exemption Waiver. In the event that an ILEC seeking
deregulation of a market area with a population of less than 30,000 has a
rural exemption as provided for in Section 251(f)(1) "Exemption For Certain
Rural Telephone Companies" of the Communications Act of 1934, a petition for
the removal of that rural exemption must be filed by the ILEC and approved
by the commission in order for the market in question not to remain regulated.
In addition, any such market must meet the conditions of the market test set
forth in subsection (c) of this section.
(e)
Timing:
(1)
Markets shall be deregulated on January 1, 2007, only if
the ILEC providing service to such a market(s) submits evidence on or before
August 1, 2006, in compliance with subsection (c) of this section and, if
applicable, subsection (d) of this section.
(2)
After July 1, 2007, an ILEC petitioning for deregulation
of a market with a population of less than 30,000 shall submit with its petition
the evidence in compliance with subsection (c) of this section and, if applicable,
subsection (d) of 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 March 9, 2006.
TRD-200601517
Adriana A. Gonzales
Rules Coordinator
Public Utility Commission of Texas
Earliest possible date of adoption: April 23, 2006
For further information, please call: (512) 936-7223
Subchapter B. PROVISIONS RELATING TO APPLICATION FOR A STATE-ISSUED CERTIFICATE OF FRANCHISE AUTHORITY
as of April
1, 1997
], and the items specified in paragraph
(6)
[
(7)
] of this subsection. Any later amendments to the System of Accounts
are not incorporated into this subsection. Subject to the commission finding
special circumstances under paragraph
(5)
[
(6)
] of this
subsection, eligible fuel expenses are limited to:
(5)
] For Account 565, an electric
utility may not recover transmission expenses paid to affiliated companies
for the purpose of equalizing or balancing the financial responsibility of
differing levels of investment and operating costs associated with transmission
assets. A non-ERCOT electric utility may not recover expenses for
transmission
service
[
wheeling transactions. An ERCOT electric utility may recover
only the expenses properly recorded in Account 565 for ISO fees related to
planned and unplanned transmission service and for payments to parties related
to unplanned transmission service, such as losses and re-dispatch fees
].
(6)
] Upon demonstration that such
treatment is justified by special circumstances, an electric utility may recover
as eligible fuel expenses fuel or fuel related expenses otherwise excluded
in paragraphs (1) -
(4)
[
(5)
] of this subsection. In
determining whether special circumstances exist, the commission shall consider,
in addition to other factors developed in the record of the reconciliation
proceeding, whether the fuel expense or transaction giving rise to the ineligible
fuel expense resulted in, or is reasonably expected to result in, increased
reliability of supply or lower fuel expenses than would otherwise be the case,
and that such benefits received or expected to be received by ratepayers exceed
the costs that ratepayers otherwise would have paid or otherwise would reasonably
expect to pay.
(7)
] Eligible fuel expenses shall
not be offset by revenues by affiliated companies for the purpose of equalizing
or balancing the financial responsibility of differing levels of investment
and operation costs associated with transmission assets. In addition to the
expenses designated in paragraphs (1) -
(5)
[
(6)
] of
this subsection, unless otherwise specified by the commission, eligible fuel
expenses shall be offset by:
(C)
] revenues from off-system sales
in their entirety, except as permitted in paragraph
(7)
[
(8)
] of this subsection.
(8)
] [
Shared margins from off-system
sales.
] An electric utility may retain 10% of the margins from an off-system
energy sales transaction if the following criteria are met:
to unaffiliated
persons or corporations for the same item or class of items
]; and
Chapter 26.
SUBSTANTIVE RULES APPLICABLE TO TELECOMMUNICATIONS SERVICE PROVIDERS
Chapter 28.
SUBSTANTIVE RULES APPLICABLE TO CABLE AND VIDEO SERVICE PROVIDERS