Texas Register
(27 TexReg 10524). The commission
adopts amendments to §25.5 relating to Definitions with changes to the
proposed text as published in the November 8, 2002
Texas Register
(27 TexReg 10524). These amendments are adopted under
Project Number 25503.
The commission proposed these amendments as a result of comments filed
on the review of Chapter 25, Substantive Rules Applicable to Electric Service
Providers, under Project Number 22067,
Review of
Agency Rules Pursuant to the Administrative Procedure Act §2001.039 for
Fiscal Years 2000-2003
. As a result of delayed competition in certain
parts of Texas and the current bifurcated market structure, it is necessary
to amend these rules to clarify that these sections apply to entities in both
the new market structure and among utilities not implementing customer choice
in January 2002. To ensure consistent nondiscriminatory standards by all market
participants, the adopted amendments conform these sections to the Public
Utility Regulatory Act (PURA) §17.004(a)(4) and §39.101(a)(5) and
(c) that establish the standards for nondiscriminatory electric service and §25.471(c)
of this title (relating to General Provisions of Customer Protection Rules).
In addition, the amendments to §25.5 incorporate all non-section specific
definitions scattered throughout Chapter 25 into §25.5. The commission
proposed to move all non- section specific definitions to §25.5, even
if used only in the section where defined, as long as moving the term to the
general definitions section would not adversely affect other sections of Chapter
25. If for some unforeseen reason a new or amended rule requires a different
definition of a particular term, a section specific definition can be developed
at that time. The definitions incorporated into §25.5 will be deleted
from the other sections as those sections of the rules are amended.
The commission received no comments on the proposed amendments to §25.1
and §25.3.
The commission received joint comments on the proposed amendments to §25.4
from Texas Legal Services Center and Texas Ratepayers' Organization to Save
Energy (collectively, Consumer Groups). Reply comments were received from
Alliance for Retail Markets (ARM), Reliant Resources, Inc. (RRI), and TXU
Energy Companies and Oncor Electric Delivery Company (collectively TXU-Oncor).
The commission received comments on §25.5 from Mutual Energy CPL,
LP, Mutual Energy WTU, LP, AEP Texas Commercial and Industrial Retail Limited
Partnership, AEP- Central Power and Light Company, AEP-West Texas Utilities
Company, and AEP-Southwestern Electric Power Company (collectively, AEP Companies);
CenterPoint Energy Houston Electric, LLC (CenterPoint); and TXU-Oncor. Reply
comments were received from AEP Companies, RRI, and TXU-Oncor.
§25.4, Statement of Nondiscrimination
Consumer Groups stated that PURA §17.004(a)(4) prohibits discrimination
against buyers of retail electric services based on level of income, as does §25.4
and §25.471(c) of the commission's substantive rules; however, §25.4
and §25.471(c) make no mention of discrimination on the basis of a buyer's
credit score. Consumer Groups alleged that a number of retail electric providers
(REPs) in Texas practice credit scoring and use low credit scores to deny
service to potential customers of retail electric service. In addition, Consumer
Groups asserted that low credit scores are used to penalize customers with
regards to deposits and service offerings.
Consumer Groups believe that credit scoring discriminates against consumers
based on level of income as prohibited by PURA §17.004(a)(4) and is inherently
unfair. Consumer Groups stated that credit scoring considers such factors
as the quality of credit a customer has and demographic factors such as level
of income, age, and geographic location, which can raise or lower a credit
score. Consumer Groups asserted that the working poor, elderly persons on
fixed incomes, the very young and low-income persons receiving public benefits
all fare poorly when it comes to credit scoring. Consumer Groups submit that
even customers with credit problems do not necessarily represent a credit
risk to REPs and that residential customers, regardless of their credit score,
pose little financial risk, almost all of which can be obviated by use of
a fair deposit scheme such as affiliated REPs must follow and the low-income
discount that all REPs must apply. In addition, Consumer Groups stated that
credit scoring is a secretive process in which few have confidence making
it inherently unfair to allow it to be used in connection with the provision
of a life essential such as electric service. Consumer Groups recommended
that the commission amend §25.4 to include credit scoring.
RRI stated that: (1) credit scoring provides an objective nondiscriminatory
analysis of the credit-worthiness of potential customers; (2) since REPs offer
service to customers and do not collect payments for use of that service until
more than 30 days after the service is rendered, REPS are essentially extending
credit to these customers for each day until payment is made; (3) credit scoring
was used in the integrated utility environment and the need for it in the
restructured electric service market remains the same; and (4) credit scoring
is endorsed by §25.478(a)(3)(B) of the commission's existing customer
protection rules. ARM stated that credit evaluation is one of the tools needed
by REPs to manage their credit risk and that the commission does not have
the authority to make the change requested by Consumer Groups.
TXU-Oncor replied that §25.4 should include only those factors specified
in PURA. TXU-Oncor stated that: (1) it appears that Consumer Groups do not
have a full understanding of credit scoring; (2) the credit score model is
past payment behavior and it is a statistically valid fact that past credit
behavior is an indication of future credit behavior; and (3) credit scores
cannot use demographics prohibited under the Equal Credit Opportunity Act.
In addition, credit scores are blind to factors like income and bank balances;
therefore, no distinction can be made between high and low income customers
and no discrimination can happen based on level of income.
ARM and RRI asserted that the change requested by Consumer Groups is outside
the scope of this proceeding. ARM stated that adequate notice has not been
provided to make the change requested by Consumer Groups and that Consumer
Groups did not sufficiently define the types of activities to be prohibited
under credit scoring. RRI stated that Consumer Groups request should be addressed
in Project Number 27084,
PUC Rulemaking to Revise
Customer Protection Rules
, not this proceeding.
The commission agrees that the activities that would be prohibited under
credit scoring have not been properly defined, that sufficient notice has
not been provided, and that the change requested by Consumer Groups is outside
the scope of this proceeding.
§25.5, Definitions
Comments on specific definitions (all numbers
before the definition correlate to the rule as proposed)
(2) Accessible utility information
AEP Companies stated the definition for "accessible utility information"
should be deleted because it is used only in §25.223, Unbundling of Energy
Services, and, as noted in Staff's February 14, 2002 memo under Project Number
22067, §25.223 is obsolete and may be repealed. If not deleted, then
it should be amended to more specifically define the term "electric service."
In addition, the term "proprietary customer information" is not defined consistently
and will impact the definition of "accessible utility information."
TXU-Oncor and RRI suggested that the term be eliminated or made consistent
with §25.223(c)(1).
The commission agrees with commenters that the term "accessible utility
information" should be eliminated and modifies §25.5 accordingly.
(4) Affiliate
In reply comments, AEP Companies stated that the definition of "affiliate"
should be modified to conform to the definition of the term as defined in
Project Number 25610,
Rulemaking Proceeding to Amend
the Rules in Chapter 25, Subchapter H, Division 2, Regarding Energy Efficiency
and Customer-Owned Resources
(Final Order September 12, 2002).
The commission disagrees with AEP Companies. The definition for "affiliate"
adopted for §25.181 under Project Number 25610 is a section specific
definition. For §25.5 the definition of "affiliate" should remain the
same as the PURA definition.
(11) Base rate
CenterPoint recommended that the definition for "base rate" be redefined
due to the changes in the electric market structure. CenterPoint suggested
the following definition: "Generally, a rate designed to recover the cost
of service other than certain costs separately identified and recovered through
a rider, rate, or tariff. For bundled utilities, these separately identified
costs may include items such as a fuel factor, power cost recovery factor,
and surcharge. Distribution service providers may have separately identified
costs such as the system benefit fee, transition costs, the excess mitigation
charge, transmission cost recovery factors, and the competition transition
charge."
TXU-Oncor stated that they believe the word "tariff" is not used appropriately
in CenterPoint's suggested revision given the definition of "tariff" in the
Standard Retail Terms and Conditions that the commission adopted in Project
Number 22187,
Rulemaking to Establish Terms and Conditions
of Transmission and Distribution Utilities' Retail Distribution Service
.
TXU-Oncor commented that in the Terms and Conditions, the word "tariff" refers
to the entire compilation of all rate schedules, riders, and service rules,
not to an individual rate schedule. Therefore, TXU-Oncor suggested that if
CenterPoint's revisions to the definition of "base rate" are made, the term
"schedule" should replace the term "tariff."
The commission agrees that CenterPoint's proposed definition is more appropriate
in the current electric market structure, with the exception of the use of
the word "tariff" as suggested by TXU-Oncor. For clarity, the commission modifies
CenterPoint's proposed definition to eliminate the word "tariff" and replaces
it with "…a rider, rate schedule, or other schedule…."
(15) Competition transition charge (CTC)
TXU-Oncor suggested the last sentence, "competition transition charges
also include the transition charges established pursuant to PURA §39.302(h)
unless the context indicates otherwise," be deleted as no other parts of the
commission's substantive rules or PURA define CTC as including transition
charges. Defining CTC to include transition charges could create conflicts
or confusion with other provisions of the commission's rules. TXU-Oncor also
stated that the last sentence creates uncertainty as to how one would discern
when the "context indicates otherwise."
The commission disagrees with TXU-Oncor and finds the proposed definition
is appropriate for the general definitions section. The proposed definition
of "competition transition charges" originated from §25.341, relating
to Definitions, from Subchapter O, Unbundling and Market Power, and includes
a "transition charge" as a "competition transition charge." This definition
is applicable to §25.344 and §25.345. Where the term is defined
differently, such as in §25.227, the meaning of the term is clear from
the context of the rule.
(17) Competitive energy efficiency services
AEP Companies stated, "a competitive energy service" should be changed
to "competitive energy services."
The commission agrees and modifies the term accordingly.
(18) Competitive retailer
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term "competitive retailer" differently,
the term should not be included in §25.5.
The proposed definition captures those entities which are competitive retailers
and is appropriate for the general definitions section. To the extent that
the term "competitive retailer" has a different application in any section,
that section contains a section-specific definition.
(27) Demand
TXU-Oncor and AEP Companies suggested that the definition should refer
to the definition in §25.181 or be revised to match the definition as
it appears in §25.181.
The commission agrees and modifies the definition in §25.5 to conform
to the term as defined in §25.181.
(28) Demand savings
CenterPoint advised that the word "average" should be changed to "averaged"
to correct a typographical error.
The commission agrees and modifies the definition accordingly.
(29) Demand-side management
TXU-Oncor and AEP Companies suggested that the definition should refer
to the definition in §25.181 or be revised to match the definition as
it appears in §25.181.
The commission agrees and modifies the definition in §25.5 to conform
to the term as defined in §25.181.
(30) Demand-side resource or demand-side management resource
CenterPoint suggested that the term would be better defined as: "Equipment,
materials, and practices that when installed and used at a customer site affect
the magnitude and/or timing of customer electricity usage."
As suggested by CenterPoint, the commission agrees that demand-side resources
or demand- side management is more than just "activities"; therefore, the
commission adds the words "equipment, and materials" to its definition. However,
the commission finds that the remainder of its definition clearly defines
the term and does not incorporate the rest of CenterPoint's proposed language.
(33) Distributed resource
CenterPoint stated that distributed resources are not limited to those
resources that defer the need for upgrading local distribution facilities
and commented that the language "…that provides advantages to the system,
such as deferring the need for upgrading local distribution facilities" should
be deleted.
The commission disagrees with CenterPoint. The language "…such as
deferring the need for upgrading distribution facilities" is an example, not
all-inclusive, and does not limit the definition.
(37) Electric generating facility
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term "electric generation facility"
differently, the term should not be included in §25.5.
The term defined in §25.5 is the same as the PURA definition and is
appropriate for the general definitions section. The commission finds that
the meaning of the term is clear from the context where it is used.
(38) Electricity Facts Label
AEP Companies stated, "disclosure information" should be changed to "disclosure
of information."
The commission agrees and modifies the term accordingly.
(41) Electric service identifier (ESI-ID)
TXU-Oncor suggested that the definition be replaced with the definition
of "ESI ID" that appears in §25.454(c)(5), as it is a more general definition
that would also apply to entities other than transmission and distribution
utilities.
The proposed definition was moved to §25.5 from §25.431, Retail
Competition Pilot Program. The commission agrees that the definition from §25.454(c)(5),
Rate Reduction Program, is a broader definition and more appropriate for §25.5
and modifies the rule accordingly.
(43) Energy efficiency
AEP Companies stated this definition should be changed to " energy efficiency
program."
The commission declines to make the change as suggested by AEP Companies.
The commission recently completed its review and amendments of the energy
efficiency and customer-owned resources in Project Number 25610,
Rulemaking Proceeding to Amend the Rules in Chapter 25, Subchapter H, Division
2, Regarding Energy Efficiency and Customer- Owned Resources
, and keeps
the definition the same as adopted in that project.
(44) Energy efficiency measures
AEP Companies stated, "measured in kWs" should be changed to "measured
in kW." TXU- Oncor suggested that the definition should refer to the definition
in the revised and recently approved energy efficiency rule, §25.181,
or be revised to match the definition as it appear in 25.181. In reply comments,
AEP Companies agreed with TXU-Oncor.
The commission agrees and modifies the term in §25.5 accordingly.
(45) Energy efficiency project
TXU-Oncor and AEP Companies stated the definition is inconsistent with
the commission's most recent revision to the term as defined in §25.181
under Project Number 25610 and should be revised accordingly.
The commission agrees and makes this change.
(46) Energy efficiency service provider (EESP)
TXU-Oncor and AEP Companies suggested that the definition should refer
to the definition in §25.181 or be revised to match the definition as
it appears in §25.181.
The commission agrees and has modified §25.5 accordingly.
(55) Fully allocated cost
AEP Companies recommended that this definition remain section specific
in §25.275, Code of Conduct for Municipally Owned Utilities and Electric
Cooperatives Engaged in Competitive Activities. TXU-Oncor suggested that the
definition should be revised or deleted, because the term "fully allocated
cost" also appears in §25.272(e)(1)(C), and inserting the term as written
could be argued to impose a three-year review cycle of transfer prices between
a utility and its affiliates that is not contemplated in the substantive rules
or PURA. TXU-Oncor suggested that if the term is retained in §25.5, the
language regarding the three-year review should be deleted from the definition.
The commission agrees and deletes the term "fully allocated cost" from §25.5.
(57) Generation service
TXU-Oncor believes it is not necessary for this definition to be included
in §25.5 because the definition appears in §25.221 and is used primarily
in relation to unbundling.
The commission finds that the term is appropriate for §25.5. The term
is used in other rules (
see
§§25.211(f),
25.471(d)(7), and 25.479(c)(1)(Q)) and the proposed definition accurately
reflects how the term is used in those sections.
(60) Independent organization
TXU-Oncor suggested that the second sentence of this definition is unnecessary
and should be deleted to avoid potential confusion. TXU-Oncor stated that
even though the definition is taken from PURA §39.151(b) the second sentence
is not critical to an understanding of what an "independent organization"
is. The sentence only indicates a governance structure that the Texas Legislature
determined would comply with the requirements of the first sentence of the
definition, but does indicate a limit on the governance structures that would
comply with the first sentence. In reply comments, RRI agreed with TXU-Oncor.
The commission agrees with commenters and deletes the second sentence from
the definition.
(62) Installed generation capacity
AEP Companies stated since the term is defined differently throughout the
rules, it should not be included in §25.5.
The commission disagrees with AEP Companies. The term in §25.5 is
defined the same as in PURA and is appropriate for the general definitions
section. The commission finds that the context of how the term is used in
the rules eliminates any confusion.
(63) Interconnection agreement
AEP Companies and CenterPoint commented that the term "interconnection
agreement," as taken from §25.211 relating to Interconnection of On-Site
Distributed Generation (DG), should not be defined in §25.5. Commenters
stated that the term as defined relates to distributed generation, yet there
are other uses of the term in the substantive rules since §25.211 was
adopted. CenterPoint stated that the commission has approved a Standard Generator
Interconnection Agreement (SGIA) that applies to interconnections between
transmission service providers (TSPs) and new electric generating stations.
In addition, as the term as used in §25.195 relating to Terms and Conditions
for Transmission Service and §25.198 relating to Initiating Transmission
Service, the term clearly cannot be the interconnection agreement for distributed
generation. CenterPoint also commented that TSPs enter into interconnection
agreements between themselves that are not addressed in the commission's rules
nor is there a standard interconnection agreement that is used between TSPs;
therefore, the defined term should not encompass the agreements between various
TSPs. AEP Companies stated that if the definition is moved from §25.211
to §25.5, it should be revised to indicate that it applies only to distribution
voltage interconnection and SGIA. CenterPoint suggested that the term be deleted
and definitions for "distributed generation interconnection agreement" and
"standard generator interconnection agreement" be added to §25.5 as follows:
Distributed generation interconnection agreement - The standard form of
agreement, which has been approved by the commission. The interconnection
agreement sets forth the contractual conditions under which a company and
a distributed generator agree that one or more facilities may be interconnected
with the company's utility system.
Standard generator interconnection agreement - The standard form of agreement,
which has been approved by the commission. The interconnection agreement sets
forth the contractual conditions under which a company and a generator agree
that one or more facilities may be interconnected with the company's transmission
system.
The commission disagrees with commenters. The term as defined includes
both distributed generation and standard generation interconnection agreements.
In addition, it would be inappropriate to include CenterPoint's suggested
new definitions on adoption because the new definitions have not been properly
noticed
(66) Load factor
CenterPoint commented that the definition of "load factor" should be redefined
due to the change in the electric market structure as follows: "The ratio
of average demand to peak demand during a specific period of time, expressed
as a percent. The load factor indicates to what degree energy was consumed
compared to the maximum possible energy that could have been consumed at the
maximum demand."
The commission declines to make the change suggested by CenterPoint. The
definition of load factor in §25.5 is the same as the definition for
the term recently adopted in Project Number 25610. The commission finds that
the change suggested by CenterPoint does not add any clarity to the term as
defined.
(67) Low-income customer
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term "low-income customer" differently,
the term should not be included in §25.5.
The commission finds that the proposed definition of "low-income customer"
is appropriate for the general definitions section and is used consistently
in the rules.
(79) New generating capacity
AEP Companies stated the proposed addition of the definition to §25.5
is unnecessary since the term is used only in the single section of the rule.
In>
The commission finds that the definition for "new generating capacity"
as moved from §25.172 may not be appropriate for the general definitions
section and has deleted the definition from §25.5.
(80) New on-site generation
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term differently, the term should not
be included in §25.5.
The term as defined in §25.5 is the same as the PURA definition and
is appropriate for the general definitions section.
(81) Off-grid generation
AEP Companies stated the definition should remain section specific in §25.173,
Goal for Renewable Energy. In the alternative, "renewable" should be inserted
after "off grid."
The commission finds that the definition is appropriate for §25.5
with the modification suggested by AEP Companies.
(84) Power cost recovery factor (PCRF)
TXU-Oncor suggested that the sentence "PCRF does not apply to utility territories
open to full competition in January 2002" is not entirely accurate and should
not be added, or in the alternative, should be revised. TXU-Oncor stated that
when the base rate component of a price to beat was calculated pursuant to §25.41(f)(2),
those rates were calculated on the base rate component "including any purchased
power cost recovery factor, in effect for the affiliated electric utility
on January 1, 1999." Thus, although it is not a PCRF that can vary, each price
to beat rate contains an element that is derived from the electric utility's
PCRF. In addition, TXU- Oncor stated that it may also be possible that a municipally
owned utility or a cooperative not participating in customer choice in a territory
already open to competition may have a PCRF.
The commission agrees with TXU-Oncor and deletes the sentence from the
definition.
(88) Pre-interconnection study
AEP Companies stated the definition should remain section specific in §25.211,
Interconnection of On-Site Distributed Generation (DG) or in the alternative
modified to identify that it applies to studies undertaken in response to
completed application for interconnection at distribution voltage. In addition,
"company" should be changed to "utility."
The commission agrees with AEP Companies' alternative definition and modifies
the rule accordingly.
(89) Premises
CenterPoint recommended that the definition for "premises" be amended to
conform to the definitions for "premises" in Appendix IV, Tariff for Retail
Delivery Service, and Appendix V, Tariff for Competitive Retailer Access.
The commission agrees and modifies the term accordingly.
(90) Price to beat (PTB)
CenterPoint stated that §25.41 relating to Price to Beat (PTB) limits
the applicability of the section to residential and small commercial customers;
therefore, for clarity the language "residential and small commercial" should
be added between "…retail electric provider to…" and "customers
in its service area." TXU-Oncor suggested using the word "eligible."
The commission agrees and makes this change.
(92) Projected stranded costs
AEP Companies stated the term "ECOM" contained in the definition is never
defined.
The commission deletes this term from §25.5 as the term is used only
in §25.263 and is defined specific to that section. If the term should
become necessary for other sections in Chapter 25 the commission will evaluate
whether the term should be defined for §25.5 at that time.
(93) Proprietary customer information
AEP Companies stated that since the term is defined differently in at least
one major code of conduct rule, it should not be included in §25.5.
TXU-Oncor suggested that this definition be revised to include information
compiled by a retail electric provider. TXU-Oncor stated that at least two
commission rules preclude a REP from disclosing proprietary customer information
without customer authorization; therefore, for purposes of §25.5, it
makes sense to reflect that REPs also compile information that qualifies as
proprietary customer information. In reply comments, RRI agreed with TXU-Oncor.
The commission finds that the term should be defined in §25.5 with
the modifications suggested by TXU-Oncor. The major code of conduct rule, §25.275,
as referenced by AEP Companies contains a section-specific definition; therefore,
no conflict exists.
(94) Provider of last resort
TXU-Oncor suggested that the definition be revised to be consistent with
the definition in §25.43(c)(8) and suggested adding the language "…in
accordance with §25.43 to customers that are not being served by a REP
for reasons other than non-payment" after "…service package" and deleting
the language "…to requesting or default customers." In reply comments,
RRI agreed with TXU-Oncor.
The commission modifies the term in §25.5 to be consistent with §25.43.
(104) Rate class
CenterPoint recommended the definition be modified due to the changes in
the electric market structure as follows: "A group of customers taking service
under the same tariffed rate schedule. For fuel surcharges and refunds, a
group of seasonal agricultural customers, as identified by the electric utility,
shall be considered a rate class."
In reply comments, TXU-Oncor stated that insertion of the word "tariffed"
does not serve any apparent purpose and the addition of the last sentence
does not seem to accomplish any critical goal or meet a pressing need; therefore,
the definition does not need to be revised as recommended by CenterPoint.
The commission agrees with TXU-Oncor and declines to make the change recommended
by CenterPoint.
(108) Reasonable performance standards
AEP Companies and TXU-Oncor stated the term should remain section specific
and should not be included in §25.5 as the term is used only in §25.172
and is intended to apply only to new natural gas-fired capacity.
The commission agrees and has deleted the definition from §25.5.
(62) Renewable resources (as proposed for deletion)
AEP Companies is unsure why the term is being deleted, and asks whether
the commission contemplates revising the sections in which the term appears.
The term is deleted because it has been combined with the definition for
"renewable energy resource" as the terms are used interchangeably in the rules.
(111) Renewable demand side management (DSM) technologies
TXU-Oncor and AEP Companies suggested that the definition should refer
to the definition in the revised and recently approved energy efficiency rule, §25.181,
or be revised to match the definition as it appear in §25.181.
The commission modifies the term in §25.5 to be consistent with the
definition of the term as recently approved for §25.181.
(118) Residential customer
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term "residential customer" differently,
the term should not be included in §25.5.
The commission finds that the proposed definition of "residential customer"
is appropriate for the general definitions section and does not adversely
affect any existing rules. If the term needs to be defined differently for
any future sections a section specific definition will be included in that
rule.
(119) Residential net price to beat (PTB)
TXU-Oncor and RRI stated that the term "residential net price to beat"
is used only in §25.263 and should remain section specific.
The commission deletes this term from §25.5 as the term is used only
in §25.263 and is defined specific to that section. If the term should
become necessary for other sections in Chapter 25 the commission will evaluate
whether the term should be defined for §25.5 at that time.
(128) Small commercial net price to beat (PTB)
TXU-Oncor and RRI stated that the term "small commercial net price to beat"
is used only in §25.263 and should remain section specific.
The commission deletes this term from §25.5 as the term is used only
in §25.263 and is defined specific to that section. If the term should
become necessary for other sections in Chapter 25 the commission will evaluate
whether the term should be defined for §25.5 at that time.
(130) Standard meter
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term "standard meter" differently, the
term should not be included in §25.5.
The commission finds that the term as defined is appropriate for all sections
where the term is used.
(138) Tariff
CenterPoint suggested the term be clarified by adding the following language
at the end of the definition: "The term may also be used to refer to an individual
schedule of the electric utility. Therefore, the term can refer to either
a compilation of all of an electric utility's schedules or only one of an
electric utility's schedules."
TXU-Oncor disagreed with CenterPoint. TXU-Oncor stated that the definition
of "tariff" in §25.5 is consistent with the definition of "tariff" used
in the Standard Retail Terms and Conditions adopted under Project Number 22187
and that CenterPoint's suggested revision would make it inconsistent with
the Standard Retail Terms and Conditions. Therefore, TXU- Oncor asserted that
CenterPoint's proposed revision should be rejected.
The commission agrees with TXU-Oncor and declines to make the change suggested
by CenterPoint.
(142) Texas jurisdictional installed generation capacity
AEP Companies stated the term is used only in §25.381 and should therefore
remain section specific.
Even though the term is used only in §25.381 the commission finds
that the term is appropriate for §25.5. If for some unforeseen reason
the commission develops a rule that would require a different definition for
"Texas jurisdictional installed generation capacity" a section specific definition
can be developed at that time.
(145) Transmission
TXU-Oncor suggested that this definition is not needed and should be deleted.
TXU-Oncor stated that the definition substantially mirrors the term as defined
in §25.341 but omits the limitation that restricts the definition of
transmission to the limited purposes of §25.344(g)(2)(B). TXU-Oncor believes
that omission expands the potential application of the term well beyond §25.344(g)(2)(B)
which pertains solely to the unbundling of the various services provided by
an integrated electric utility. TXU-Oncor stated that because the term "transmission"
uses the words "transform" and "transformation," it is possible that a conflict
is created with the definition of "transmission facilities" in §25.192(c)(1)(B).
Transmission facilities provides that substation facilities on the high side
of the transformer, in a substation where power is
transformed
from a voltage higher than 60 kilovolts to a voltage lower
than 60 kilovolts are deemed to be transmission facilities that can be included
in the transmission cost of service. There are also distribution transformers
on the low side of the transformer that are not eligible for inclusion in
transmission cost of service. Thus, TXU-Oncor stated, defining transmission
in a manner that includes facilities at or above 60 kilovolts "necessary to
transform and move" could be argued to expand those facilities that can be
included in transmission cost of service. TXU-Oncor also asserted that since §25.5
already includes a definition for "transmission service," there is no apparent
reason to add an additional definition of "transmission."
The commission agrees with TXU-Oncor and deletes the definition.
(148) Transmission and distribution utility region (TDU region)
AEP Companies stated the term is used only in §25.263, True-up Proceeding,
and should remain section specific. Further, the word "affiliated" should
be deleted from the definition.
The commission deletes the term from §25.5 as the term "region" is
used only in §25.263. Other rules that incorporate the concept of a TDU's
region use the term "service territory" not "region." The commission finds
that the term "service territory" is clear from the context of the rules in
which it is used and a definition is not needed for §25.5 at this time.
(150) Transmission service
CenterPoint stated that the definition for "transmission service" should
be modified to conform to the definition of the term in PURA §31.002(20).
In reply comments, TXU-Oncor stated that, as revised by CenterPoint, the
definition of "transmission service" would only state what transmission service
includes and would not provide an indication of who provides transmission
service. TXU-Oncor commented that the definition should remain unchanged.
The commission agrees with TXU-Oncor and declines to make the change proposed
by CenterPoint.
(154) Utility metering
AEP Companies, CenterPoint, and RRI stated that the definition for "utility
metering" should be deleted from §25.5, as although currently defined
in §25.142, Submetering for Apartments, Condominiums, and Mobile Home
Parks, it is not actually used in this section. In addition, the term is used
differently in terms defined in §25.341 relating to Definitions, and
in §25.344, Cost Separation Proceedings, and §25.346, Separation
of Electric Utility Metering and Billing Service Costs and Activities.
The commission agrees and deletes the term "utility metering" from §25.5.
(155) Working day
AEP Companies stated the term is used in several different substantive
rules. If any of the rules define the term "working day" differently, the
term should not be included in §25.5.
The commission finds that several of the rules that use the term "working
day" refer to a day that the electric service provider is open for business,
not the commission. Since these sections do not include section specific definitions
the commission deletes the term "working day" from §25.5.
These amendments are adopted under the Public Utility Regulatory
Act, Texas Utilities Code Annotated §14.002 (Vernon 1998, Supplement
2003) (PURA), which provides the Public Utility Commission with the authority
to make and enforce rules reasonably required in the exercise of its powers
and jurisdiction; and specifically, PURA §11.002 which grants the commission
authority to make and enforce rules necessary to protect customers of electric
service consistent with the public interest; §17.004(a)(4) that states
that all buyers of retail electric services are entitled to protection from
discrimination on the basis of race, color, sex, nationality, religion, martial
status, income level, or source of income and from unreasonable discrimination
on the basis of geographic location; §17.004(b) which grants the commission
authority to adopt and enforce rules as necessary and appropriate to carry
out the customer protection standards set forth in §17.004; §39.101(a)(5)
that requires the commission to ensure that retail customer protections are
established that entitle a customer to protection from discrimination on the
basis of race, color, sex, nationality, religion or marital status; §39.101(c)
which provides that any entity that provides retail electric service may not
discriminate in the provision of electric service to any customer because
of race, creed, color, national origin, ancestry, sex, marital status, lawful
source of income, disability, or familial status or because the customer in
located in an economically distressed geographic area or qualifies for low-income
affordability or energy efficiency services.
Cross Reference to Statutes: Public Utility Regulatory Act §§11.002,
17.004, and 39.101.
§25.5.Definitions.
The following words and terms, when used in this chapter, shall have
the following meanings, unless the context clearly indicates otherwise:
(1)
Above-market purchased power costs--Wholesale demand and
energy costs that a utility is obligated to pay under an existing purchased
power contract to the extent the costs are greater than the purchased power
market value.
(2)
Affected person--means:
(A)
a public utility or electric cooperative affected by an
action of a regulatory authority;
(B)
a person whose utility service or rates are affected by
a proceeding before a regulatory authority; or
(C)
a person who:
(i)
is a competitor of a public utility with respect to a service
performed by the utility; or
(ii)
wants to enter into competition with a public utility.
(3)
Affiliate--means:
(A)
a person who directly or indirectly owns or holds at least
5.0% of the voting securities of a public utility;
(B)
a person in a chain of successive ownership of at least
5.0% of the voting securities of a public utility;
(C)
a corporation that has at least 5.0% of its voting securities
owned or controlled, directly or indirectly, by a public utility;
(D)
a corporation that has at least 5.0% of its voting securities
owned or controlled, directly or indirectly, by:
(i)
a person who directly or indirectly owns or controls at
least 5.0% of the voting securities of a public utility; or
(ii)
a person in a chain of successive ownership of at least
5.0% of the voting securities of a public utility;
(E)
a person who is an officer or director of a public utility
or of a corporation in a chain of successive ownership of at least 5.0% of
the voting securities of a public utility; or
(F)
a person determined to be an affiliate under Public Utility
Regulatory Act §11.006.
(4)
Affiliated electric utility--The electric utility from
which an affiliated retail electric provider was unbundled in accordance with
Public Utility Regulatory Act §39.051.
(5)
Affiliated power generation company (APGC)--A power generation
company that is affiliated with or the successor in interest of an electric
utility certificated to serve an area.
(6)
Affiliated retail electric provider (AREP)--A retail electric
provider that is affiliated with or the successor in interest of an electric
utility certificated to serve an area.
(7)
Aggregation--Includes the following:
(A)
the purchase of electricity from a retail electric provider,
a municipally owned utility, or an electric cooperative by an electricity
customer for its own use in multiple locations, provided that an electricity
customer may not avoid any nonbypassable charges or fees as a result of aggregating
its load; or
(B)
the purchase of electricity by an electricity customer
as part of a voluntary association of electricity customers, provided that
an electricity customer may not avoid any nonbypassable charges or fees as
a result of aggregating its load.
(8)
Aggregator--A person joining two or more customers, other
than municipalities and political subdivision corporations, into a single
purchasing unit to negotiate the purchase of electricity from retail electric
providers. Aggregators may not sell or take title to electricity. Retail electric
providers are not aggregators.
(9)
Ancillary service--A service necessary to facilitate the
transmission of electric energy including load following, standby power, backup
power, reactive power, and any other services the commission may determine
by rule.
(10)
Base rate--Generally, a rate designed to recover the cost
of service other than certain costs separately identified and recovered through
a rider, rate schedule, or other schedule. For bundled utilities, these separately
identified costs may include items such as a fuel factor, power cost recovery
factor, and surcharge. Distribution service providers may have separately
identified costs such as the system benefit fee, transition costs, the excess
mitigation charge, transmission cost recovery factors, and the competition
transition charge.
(11)
Bundled Municipally Owned Utilities/Electric Cooperatives
(MOU/COOP)--A municipally owned utility/electric cooperative that is conducting
both transmission and distribution activities and competitive energy-related
activities on a bundled basis without structural or functional separation
of transmission and distribution functions from competitive energy-related
activities and that makes a written declaration of its status as a bundled
municipally owned utility/electric cooperative pursuant to §25.275(o)(3)(A)
of this title (relating to Code of Conduct for Municipally Owned Utilities
and Electric Cooperatives Engaged in Competitive Activities).
(12)
Calendar year--January 1 through December 31.
(13)
Commission--The Public Utility Commission of Texas.
(14)
Competition transition charge (CTC)--Any non-bypassable
charge that recovers the positive excess of the net book value of generation
assets over the market value of the assets, taking into account all of the
electric utility's generation assets, any above market purchased power costs,
and any deferred debit related to a utility's discontinuance of the application
of Statement of Financial Accounting Standards Number 71 ("Accounting for
the Effects of Certain Types of Regulation") for generation-related assets
if required by the provisions of the Public Utility Regulatory Act (PURA),
Chapter 39. For purposes of PURA §39.262, book value shall be established
as of December 31, 2001, or the date a market value is established through
a market valuation method under PURA §39.262(h), whichever is earlier,
and shall include stranded costs incurred under PURA §39.263. Competition
transition charges also include the transition charges established pursuant
to PURA §39.302(7) unless the context indicates otherwise.
(15)
Competitive affiliate--An affiliate of a utility that
provides services or sells products in a competitive energy-related market
in this state, including telecommunications services, to the extent those
services are energy-related.
(16)
Competitive energy efficiency services--Energy efficiency
services that are defined as competitive energy services pursuant to §25.341
of this title (relating to Definitions).
(17)
Competitive retailer--A retail electric provider; or a
municipally owned utility or electric cooperative, that has the right to offer
electric energy and related services at unregulated prices directly to retail
customers who have customer choice, without regard to geographic location.
(18)
Congestion zone--An area of the transmission network that
is bounded by commercially significant transmission constraints or otherwise
identified as a zone that is subject to transmission constraints, as defined
by an independent organization.
(19)
Control area--An electric power system or combination
of electric power systems to which a common automatic generation control scheme
is applied in order to:
(A)
match, at all times, the power output of the generators
within the electric power system(s) and capacity and energy purchased from
entities outside the electric power system(s), with the load within the electric
power system(s);
(B)
maintain, within the limits of good utility practice, scheduled
interchange with other control areas;
(C)
maintain the frequency of the electric power system(s)
within reasonable limits in accordance with good utility practice; and
(D)
obtain sufficient generating capacity to maintain operating
reserves in accordance with good utility practice.
(20)
Corporation--A domestic or foreign corporation, joint-stock
company, or association, and each lessee, assignee, trustee, receiver, or
other successor in interest of the corporation, company, or association, that
has any of the powers or privileges of a corporation not possessed by an individual
or partnership. The term does not include a municipal corporation or electric
cooperative, except as expressly provided by the Public Utility Regulatory
Act.
(21)
Critical loads--Loads for which electric service is considered
crucial for the protection or maintenance of public health and safety; including
but not limited to hospitals, police stations, fire stations, critical water
and wastewater facilities, and customers with special in-house life-sustaining
equipment.
(22)
Customer choice--The freedom of a retail customer to purchase
electric services, either individually or through voluntary aggregation with
other retail customers, from the provider or providers of the customer's choice
and to choose among various fuel types, energy efficiency programs, and renewable
power suppliers.
(23)
Customer class--A group of customers with similar electric
service characteristics (e.g., residential, commercial, industrial, sales
for resale) taking service under one or more rate schedules. Qualified businesses
as defined by the Texas Enterprise Zone Act, Texas Government Code, Title
10, Chapter 2303 may be considered to be a separate customer class of electric
utilities.
(24)
Day-ahead--The day preceding the operating day.
(25)
Deemed savings--A pre-determined, validated estimate of
energy and peak demand savings attributable to an energy efficiency measure
in a particular type of application that a utility may use instead of energy
and peak demand savings determined through measurement and verification activities.
(26)
Demand--The rate at which electric energy is delivered
to or by a system at a given instant, or averaged over a designated period,
usually expressed in kilowatts (kW) or megawatts (MW).
(27)
Demand savings--A quantifiable reduction in the rate at
which energy is delivered to or by a system at a given instance, or averaged
over a designated period, usually expressed in kilowatts (kW) or megawatts
(MW).
(28)
Demand-side management (DSM)--Activities that affect the
magnitude or timing of customer electrical usage, or both.
(29)
Demand-side resource or demand-side management--Equipment,
materials, and activities that result in reductions in electric generation,
transmission, or distribution capacity needs or reductions in energy usage
or both.
(30)
Disconnection of service--Interruption of a customer's
supply of electric service at the customer's point of delivery by an electric
utility, a transmission and distribution utility, a municipally owned utility
or an electric cooperative.
(31)
Distribution line--A power line operated below 60,000
volts, when measured phase-to-phase, that is owned by an electric utility,
transmission and distribution utility, municipally owned utility, or electric
cooperative.
(32)
Distributed resource--A generation, energy storage, or
targeted demand-side resource, generally between one kilowatt and ten megawatts,
located at a customer's site or near a load center, which may be connected
at the distribution voltage level (below 60,000 volts), that provides advantages
to the system, such as deferring the need for upgrading local distribution
facilities.
(33)
Distribution service provider (DSP)--An electric utility,
municipally-owned utility, or electric cooperative that owns or operates for
compensation in this state equipment or facilities that are used for the distribution
of electricity to retail customers, as defined in this section, including
retail customers served at transmission voltage levels.
(34)
Economically distressed geographic area--Zip code area
in which the average household income is less than or equal to 60% of the
statewide median income, as reported in the most recently available United
States Census data.
(35)
Electric cooperative--
(A)
a corporation organized under the Texas Utilities Code,
Chapter 161 or a predecessor statute to Chapter 161 and operating under that
chapter;
(B)
a corporation organized as an electric cooperative in a
state other than Texas that has obtained a certificate of authority to conduct
affairs in the State of Texas; or
(C)
a successor to an electric cooperative created before June
1, 1999, in accordance with a conversion plan approved by a vote of the members
of the electric cooperative, regardless of whether the successor later purchases,
acquires, merges with, or consolidates with other electric cooperatives.
(36)
Electric generating facility--A facility that generates
electric energy for compensation and that is owned or operated by a person
in this state, including a municipal corporation, electric cooperative, or
river authority.
(37)
Electricity Facts label--A standardized format, as described
in §25.475(e) of this title (relating to Information Disclosures to Residential
and Small Commercial Customers), for disclosure of information and contract
terms made available to customers to help them choose a provider and an electricity
product.
(38)
Electricity product--A product offered by a competitive
retailer to a customer for the provision of retail electric service under
specific terms and conditions, and marketed under a specific Electricity Facts
label.
(39)
Electric Reliability Council of Texas (ERCOT)--Refers
to the independent organization and, in a geographic sense, refers to the
area served by electric utilities, municipally owned utilities, and electric
cooperatives that are not synchronously interconnected with electric utilities
outside of the State of Texas.
(40)
Electric service identifier (ESI ID)--The basic identifier
assigned to each point of delivery used in the registration system and settlement
system managed by the Electric Reliability Council of Texas (ERCOT) or another
independent organization.
(41)
Electric utility--Except as otherwise provided in this
Chapter, an electric utility is: A person or river authority that owns or
operates for compensation in this state equipment or facilities to produce,
generate, transmit, distribute, sell, or furnish electricity in this state.
The term includes a lessee, trustee, or receiver of an electric utility and
a recreational vehicle park owner who does not comply with Texas Utilities
Code, Subchapter C, Chapter 184, with regard to the metered sale of electricity
at the recreational vehicle park. The term does not include:
(A)
a municipal corporation;
(B)
a qualifying facility;
(C)
a power generation company;
(D)
an exempt wholesale generator;
(E)
a power marketer;
(F)
a corporation described by Public Utility Regulatory Act §32.053
to the extent the corporation sells electricity exclusively at wholesale and
not to the ultimate consumer;
(G)
an electric cooperative;
(H)
a retail electric provider;
(I)
the state of Texas or an agency of the state; or
(J)
a person not otherwise an electric utility who:
(i)
furnishes an electric service or commodity only to itself,
its employees, or its tenants as an incident of employment or tenancy, if
that service or commodity is not resold to or used by others;
(ii)
owns or operates in this state equipment or facilities
to produce, generate, transmit, distribute, sell or furnish electric energy
to an electric utility, if the equipment or facilities are used primarily
to produce and generate electric energy for consumption by that person; or
(iii)
owns or operates in this state a recreational vehicle
park that provides metered electric service in accordance with Texas Utilities
Code, Subchapter C, Chapter 184.
(42)
Energy efficiency--Programs that are aimed at reducing
the rate at which electric energy is used by equipment and/or processes. Reduction
in the rate of energy used may be obtained by substituting technically more
advanced equipment to produce the same level of end-use services with less
electricity; adoption of technologies and processes that reduce heat or other
energy losses; or reorganization of processes to make use of waste heat. Efficient
use of energy by customer-owned end-use devices implies that existing comfort
levels, convenience, and productivity are maintained or improved at a lower
customer cost.
(43)
Energy efficiency measures--Equipment, materials, and
practices that when installed and used at a customer site result in a measurable
and verifiable reduction in either purchased electric energy consumption,
measured in kilowatt- hours (kWh), or peak demand, measured in kW, or both.
(44)
Energy efficiency project--An energy efficiency measure
or combination of measures installed under a standard offer contract or a
market transformation contract that results in both a reduction in customers'
electric energy consumption and peak demand, and energy costs.
(45)
Energy efficiency service provider (EESP)--A person who
installs energy efficiency measures or performs other energy efficiency services.
An energy efficiency service provider may be a retail electric provider or
large commercial customer, if the person has executed a standard offer contract.
(46)
Energy savings--A quantifiable reduction in a customer's
consumption of energy.
(47)
ERCOT protocols--Body of procedures developed by ERCOT
to maintain the reliability of the regional electric network and account for
the production and delivery of electricity among resources and market participants.
The procedures, initially approved by the commission, include a revisions
process that may be appealed to the commission, and are subject to the oversight
and review of the commission.
(48)
ERCOT region--The geographic area under the jurisdiction
of the commission that is served by transmission service providers that are
not synchronously interconnected with transmission service providers outside
of the state of Texas.
(49)
Exempt wholesale generator--A person who is engaged directly
or indirectly through one or more affiliates exclusively in the business of
owning or operating all or part of a facility for generating electric energy
and selling electric energy at wholesale who does not own a facility for the
transmission of electricity, other than an essential interconnecting transmission
facility necessary to effect a sale of electric energy at wholesale, and who
is in compliance with the registration requirements of §25.105 of this
title (relating to Registration and Reporting by Power Marketers).
(50)
Existing purchased power contract--A purchased power contract
in effect on January 1, 1999, including any amendments and revisions to that
contract resulting from litigation initiated before January 1, 1999.
(51)
Facilities--All the plant and equipment of an electric
utility, including all tangible and intangible property, without limitation,
owned, operated, leased, licensed, used, controlled, or supplied for, by,
or in connection with the business of an electric utility.
(52)
Financing order--An order of the commission adopted under
the Public Utility Regulatory Act §39.201 or §39.262 approving the
issuance of transition bonds and the creation of transition charges for the
recovery of qualified costs.
(53)
Freeze period--The period beginning on January 1, 1999,
and ending on December 31, 2001.
(54)
Generation assets--All assets associated with the production
of electricity, including generation plants, electrical interconnections of
the generation plant to the transmission system, fuel contracts, fuel transportation
contracts, water contracts, lands, surface or subsurface water rights, emissions-related
allowances, and gas pipeline interconnections.
(55)
Generation service--The production and purchase of electricity
for retail customers and the production, purchase and sale of electricity
in the wholesale power market.
(56)
Good utility practice--Any of the practices, methods,
and acts engaged in or approved by a significant portion of the electric utility
industry during the relevant time period, or any of the practices, methods,
and acts that, in the exercise of reasonable judgment in light of the facts
known at the time the decision was made, could have been expected to accomplish
the desired result at a reasonable cost consistent with good business practices,
reliability, safety, and expedition. Good utility practice is not intended
to be limited to the optimum practice, method, or act, to the exclusion of
all others, but rather is intended to include acceptable practices, methods,
and acts generally accepted in the region.
(57)
Hearing--Any proceeding at which evidence is taken on
the merits of the matters at issue, not including prehearing conferences.
(58)
Independent organization--An independent system operator
or other person that is sufficiently independent of any producer or seller
of electricity that its decisions will not be unduly influenced by any producer
or seller.
(59)
Independent system operator--An entity supervising the
collective transmission facilities of a power region that is charged with
non-discriminatory coordination of market transactions, systemwide transmission
planning, and network reliability.
(60)
Installed generation capacity--All potentially marketable
electric generation capacity, including the capacity of:
(A)
generating facilities that are connected with a transmission
or distribution system;
(B)
generating facilities used to generate electricity for
consumption by the person owning or controlling the facility; and
(C)
generating facilities that will be connected with a transmission
or distribution system and operating within 12 months.
(61)
Interconnection agreement--The standard form of agreement,
which has been approved by the commission. The interconnection agreement sets
forth the contractual conditions under which a company and a customer agree
that one or more facilities may be interconnected with the company's utility
system.
(62)
License--The whole or part of any commission permit, certificate,
approval, registration, or similar form of permission required by law.
(63)
Licensing--The commission process for granting, denial,
renewal, revocation, suspension, annulment, withdrawal, or amendment of a
license.
(64)
Load factor--The ratio of average load to peak load during
a specific period of time, expressed as a percent. The load factor indicates
to what degree energy has been consumed compared to maximum demand or utilization
of units relative to total system capability.
(65)
Low-income customer--An electric customer, whose household
income is not more than 125% of the federal poverty guidelines, or who receives
food stamps from the Texas Department of Human Services (TDHS) or medical
assistance from a state agency administering a part of the medical assistance
program.
(66)
Low-Income Discount Administrator (LIDA)--A third-party
administrator contracted by the commission to administer aspects of the rate
reduction program established under Public Utility Regulatory Act §39.903.
(67)
Market power mitigation plan--A written proposal by an
electric utility or a power generation company for reducing its ownership
and control of installed generation capacity as required by the Public Utility
Regulatory Act §39.154.
(68)
Market value--For nonnuclear assets and certain nuclear
assets, the value the assets would have if bought and sold in a bona fide
third-party transaction or transactions on the open market under the Public
Utility Regulatory Act (PURA) §39.262(h) or, for certain nuclear assets,
as described by PURA §39.262(i), the value determined under the method
provided by that subsection.
(69)
Master meter--A meter used to measure, for billing purposes,
all electric usage of an apartment house or mobile home park, including common
areas, common facilities, and dwelling units.
(70)
Municipality--A city, incorporated village, or town, existing,
created, or organized under the general, home rule, or special laws of the
state.
(71)
Municipally-owned utility (MOU)--Any utility owned, operated,
and controlled by a municipality or by a nonprofit corporation whose directors
are appointed by one or more municipalities.
(72)
Nameplate rating--The full-load continuous rating of a
generator under specified conditions as designated by the manufacturer.
(73)
Native load customer--A wholesale or retail customer on
whose behalf an electric utility, electric cooperative, or municipally-owned
utility, by statute, franchise, regulatory requirement, or contract, has an
obligation to construct and operate its system to meet in a reliable manner
the electric needs of the customer.
(74)
Natural gas energy credit (NGEC)--A tradable instrument
representing each megawatt of new generating capacity fueled by natural gas,
as authorized by the Public Utility Regulatory Act §39.9044 and implemented
under §25.172 of this title (relating to Goal for Natural Gas).
(75)
Net book value--The original cost of an asset less accumulated
depreciation.
(76)
Net dependable capability--The maximum load in megawatts,
net of station use, which a generating unit or generating station can carry
under specified conditions for a given period of time, without exceeding approved
limits of temperature and stress.
(77)
New on-site generation--Electric generation capacity greater
than ten megawatts capable of being lawfully delivered to the site without
use of utility distribution or transmission facilities, which was not, on
or before December 31, 1999, either:
(A)
A fully operational facility, or
(B)
A project supported by substantially complete filings for
all necessary site- specific environmental permits under the rules of the
Texas Natural Resource Conservation Commission (TNRCC) in effect at the time
of filing.
(78)
Off-grid renewable generation--The generation of renewable
energy in an application that is not interconnected to a utility transmission
or distribution system.
(79)
Other generation sources--A competitive retailer's or
affiliated retail electric provider's supply of generated electricity that
is not accounted for by a direct supply contract with an owner of generation
assets.
(80)
Person--Includes an individual, a partnership of two or
more persons having a joint or common interest, a mutual or cooperative association,
and a corporation, but does not include an electric cooperative.
(81)
Power cost recovery factor(PCRF)--A charge or credit that
reflects an increase or decrease in purchased power costs not in base rates.
(82)
Power generation company (PGC)--A person that:
(A)
generates electricity that is intended to be sold at wholesale;
(B)
does not own a transmission or distribution facility in
this state, other than an essential interconnecting facility, a facility not
dedicated to public use, or a facility otherwise excluded from the definition
of "electric utility" under this section; and
(C)
does not have a certificated service area, although its
affiliated electric utility or transmission and distribution utility may have
a certificated service area.
(83)
Power marketer--A person who becomes an owner of electric
energy in this state for the purpose of selling the electric energy at wholesale;
does not own generation, transmission, or distribution facilities in this
state; does not have a certificated service area; and who is in compliance
with the registration requirements of §25.105 of this title (relating
to Registration and Reporting by Power Marketers).
(84)
Power region--A contiguous geographical area which is
a distinct region of the North American Electric Reliability Council.
(85)
Pre-interconnection study--A study or studies that may
be undertaken by a utility in response to its receipt of a completed application
for interconnection and parallel operation with the utility system at distribution
voltage. Pre- interconnection studies may include, but are not limited to,
service studies, coordination studies and utility system impact studies.
(86)
Premises--A tract of land or real estate or related commonly
used tracts including buildings and other appurtenances thereon.
(87)
Price to beat (PTB)--A price for electricity, as determined
pursuant to the Public Utility Regulatory Act §39.202, charged by an
affiliated retail electric provider to eligible residential and small commercial
customers in its service area.
(88)
Proceeding--A hearing, investigation, inquiry, or other
procedure for finding facts or making a decision. The term includes a denial
of relief or dismissal of a complaint. It may be rulemaking or nonrulemaking;
rate setting or non-rate setting.
(89)
Proprietary customer information--Any information compiled
by a retail electric provider, an electric utility, a transmission and distribution
business unit as defined in §25.275(c)(16) of this title (relating to
Code of Conduct for Municipally Owned Utilities and Electric Cooperatives
Engaged in Competitive Activities) on a customer in the course of providing
electric service or by an aggregator on a customer in the course of aggregating
electric service that makes possible the identification of any individual
customer by matching such information with the customer's name, address, account
number, type or classification of service, historical electricity usage, expected
patterns of use, types of facilities used in providing service, individual
contract terms and conditions, price, current charges, billing records, or
any information that the customer has expressly requested not be disclosed.
Information that is redacted or organized in such a way as to make it impossible
to identify the customer to whom the information relates does not constitute
proprietary customer information.
(90)
Provider of last resort (POLR)--A retail electric provider
(REP) certified in Texas that has been designated by the commission to provide
a basic, standard retail service package in accordance with §25.43 of
this title (relating to Provider of Last Resort (POLR)) to customers that
are not being served by a REP for reasons other than non-payment.
(91)
Public retail customer--A retail customer that is an agency
of this state, a state institution of higher education, a public school district,
or a political subdivision of this state.
(92)
Public utility or utility--An electric utility as that
term is defined in this section, or a public utility or utility as those terms
are defined in the Public Utility Regulatory Act §51.002.
(93)
Public Utility Regulatory Act (PURA)--The enabling statute
for the Public Utility Commission of Texas, located in the Texas Utilities
Code Annotated, §§11.001
et. seq.
(94)
Purchased power market value--The value of demand and
energy bought and sold in a bona fide third-party transaction or transactions
on the open market and determined by using the weighted average costs of the
highest three offers from the market for purchase of the demand and energy
available under the existing purchased power contracts.
(95)
Qualified scheduling entity--A market participant that
is qualified by the Electric Reliability Council of Texas (ERCOT) in accordance
with Section 16, Registration and Qualification of Market Participants of
ERCOT's Protocols, to submit balanced schedules and ancillary services bids
and settle payments with ERCOT.
(96)
Qualifying cogenerator--The meaning as assigned this term
by 16 U.S.C. §796(18)(C). A qualifying cogenerator that provides electricity
to the purchaser of the cogenerator's thermal output is not for that reason
considered to be a retail electric provider or a power generation company.
(97)
Qualifying facility--A qualifying cogenerator or qualifying
small power producer.
(98)
Qualifying small power producer--The meaning as assigned
this term by 16 U.S.C. §796(17)(D).
(99)
Rate--A compensation, tariff, charge, fare, toll, rental,
or classification that is directly or indirectly demanded, observed, charged,
or collected by an electric utility for a service, product, or commodity described
in the definition of electric utility in this section and a rule, practice,
or contract affecting the compensation, tariff, charge, fare, toll, rental,
or classification that must be approved by a regulatory authority.
(100)
Rate class--A group of customers taking electric service
under the same rate schedule.
(101)
Rate reduction program--A program to provide reduced
electric rates for eligible low-income customers, in accordance with the Public
Utility Regulatory Act §39.903(h).
(102)
Rate year--The 12-month period beginning with the first
date that rates become effective. The first date that rates become effective
may include, but is not limited to, the effective date for bonded rates or
the effective date for interim or temporary rates.
(103)
Ratemaking proceeding--A proceeding in which a rate may
be changed.
(104)
Registration agent--Entity designated by the commission
to administer registration and settlement, premise data, and other processes
concerning a customer's choice of retail electric provider in the competitive
electric market in Texas.
(105)
Regulatory authority--In accordance with the context
where it is found, either the commission or the governing body of a municipality.
(106)
Renewable demand side management (DSM) technologies--Equipment
that uses a renewable energy resource (renewable resource) as defined in this
section, that, when installed at a customer site, reduces the customer's net
purchases of energy (kWh), electrical demand (kW), or both.
(107)
Renewable energy--Energy derived from renewable energy
technologies.
(108)
Renewable energy credit (REC)--A tradable instrument
representing the generation attributes of one MWh of electricity from renewable
energy sources, as authorized by the Public Utility Regulatory Act §39.904
and implemented under §25.173(e) of this title (relating to Goal for
Renewable Energy).
(109)
Renewable energy credit account (REC account)--An account
maintained by the renewable energy credits trading program administrator for
the purpose of tracking the production, sale, transfer, purchase, and retirement
of RECs by a program participant.
(110)
Renewable energy resource (renewable resource)--A resource
that produces energy derived from renewable energy technologies.
(111)
Renewable energy technology--Any technology that exclusively
relies on an energy source that is naturally regenerated over a short time
and derived directly from the sun, indirectly from the sun or from moving
water or other natural movements and mechanisms of the environment. Renewable
energy technologies include those that rely on energy derived directly from
the sun, on wind, geothermal, hydroelectric, wave, or tidal energy, or on
biomass or biomass-based waste products, including landfill gas. A renewable
energy technology does not rely on energy resources derived from fossil fuels,
waste products from fossil fuels, or waste products from inorganic sources.
(112)
Repowering--Modernizing or upgrading an existing facility
in order to increase its capacity or efficiency.
(113)
Residential customer--Retail customers classified as
residential by the applicable bundled utility tariff, unbundled 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 at the customer's place of residence for personal, family
or household purposes and who are not resellers of electricity.
(114)
Retail customer--The separately metered end-use customer
who purchases and ultimately consumes electricity.
(115)
Retail electric provider (REP)--A person that sells electric
energy to retail customers in this state. A retail electric provider may not
own or operate generation assets.
(116)
Retail stranded costs--That part of net stranded cost
associated with the provision of retail service.
(117)
Retrofit--The installation of control technology on an
electric generating facility to reduce the emissions of nitrogen oxide, sulfur
dioxide, or both.
(118)
River authority--A conservation and reclamation district
created pursuant to the Texas Constitution, Article 16, Section 59, including
any nonprofit corporation created by such a district pursuant to the Texas
Water Code, Chapter 152, that is an electric utility.
(119)
Rule--A statement of general applicability that implements,
interprets, or prescribes law or policy, or describes the procedure or practice
requirements of the commission. The term includes the amendment or repeal
of a prior rule, but does not include statements concerning only the internal
management or organization of the commission and not affecting private rights
or procedures.
(120)
Separately metered--Metered by an individual meter that
is used to measure electric energy consumption by a retail customer and for
which the customer is directly billed by a utility, retail electric provider,
electric cooperative, or municipally owned utility.
(121)
Service--Has its broadest and most inclusive meaning.
The term includes any act performed, anything supplied, and any facilities
used or supplied by an electric utility in the performance of its duties under
the Public Utility Regulatory Act to its patrons, employees, other public
utilities or electric utilities, an electric cooperative, and the public.
The term also includes the interchange of facilities between two or more public
utilities or electric utilities.
(122)
Spanish-speaking person--A person who speaks any dialect
of the Spanish language exclusively or as their primary language.
(123)
Standard meter--The minimum metering device necessary
to obtain the billing determinants required by the transmission and distribution
utility's tariff schedule to determine an end-use customer's charges for transmission
and distribution service.
(124)
Stranded cost--The positive excess of the net book value
of generation assets over the market value of the assets, taking into account
all of the electric utility's generation assets, any above-market purchased
power costs, and any deferred debit related to a utility's discontinuance
of the application of Statement of Financial Accounting Standards Number 71
("Accounting for the Effect of Certain Types of Regulation") for generation-related
assets if required by the provisions of the Public Utility Regulatory Act
(PURA), Chapter 39. For purposes of PURA §39.262, book value shall be
established as of December 31, 2001, or the date a market value is established
through a market valuation method under PURA §39.262(h), whichever is
earlier, and shall include stranded costs incurred under PURA §39.263.
(125)
Submetering--Metering of electricity consumption on the
customer side of the point at which the electric utility meters electricity
consumption for billing purposes.
(126)
Summer net dependable capability--The net capability
of a generating unit in megawatts (MW) for daily planning and operational
purposes during the summer peak season, as determined in accordance with requirements
of the reliability council or independent organization in which the unit operates.
(127)
Supply-side resource--A resource, including a storage
device, that provides electricity from fuels or renewable resources.
(128)
System benefit account--An account with the Texas Comptroller
of Public Accounts (Comptroller) to be administered by the commission.
(129)
System benefit fee--A nonbypassable fee set by the commission
to finance the system benefit account or fund. The fee shall be charged to
electric retail customers based on the amount of kilowatt hours (kWh) of electric
energy used, as measured at the meter and adjusted for voltage level losses.
(130)
System emergency--A condition on a utility's system that
is likely to result in imminent significant disruption of service to customers
or is imminently likely to endanger life or property.
(131)
Tariff--The schedule of a utility, municipally-owned
utility, or electric cooperative containing all rates and charges stated separately
by type of service, the rules and regulations of the utility, and any contracts
that affect rates, charges, terms or conditions of service.
(132)
Termination of service--The cancellation or expiration
of a sales agreement or contract by a retail electric provider by notification
to the customer and the registration agent.
(133)
Tenant--A person who is entitled to occupy a dwelling
unit to the exclusion of others and who is obligated to pay for the occupancy
under a written or oral rental agreement.
(134)
Test year--The most recent 12 months for which operating
data for an electric utility, electric cooperative, or municipally-owned utility
are available and shall commence with a calendar quarter or a fiscal year
quarter.
(135)
Texas jurisdictional installed generation capacity--The
amount of an affiliated power generation company's installed generation capacity
properly allocable to the Texas jurisdiction. Such allocation shall be calculated
pursuant to an existing commission-approved allocation study, or other such
commission-approved methodology, and may be adjusted as approved by the commission
to reflect the effects of divestiture or the installation of new generation
facilities.
(136)
Transition bonds--Bonds, debentures, notes, certificates,
of participation or of beneficial interest, or other evidences of indebtedness
or ownership that are issued by an electric utility, its successors, or an
assignee under a financing order, that have a term not longer than 15 years,
and that are secured or payable from transition property.
(137)
Transition charges--Nonbypassable amounts to be charged
for the use or availability of electric services, approved by the commission
under a financing order to recover qualified costs, that shall be collected
by an electric utility, its successors, an assignee, or other collection agents
as provided for in a financing order.
(138)
Transmission and distribution business unit (TDBU)--The
business unit of a municipally owned utility/electric cooperative, whether
structurally unbundled as a separate legal entity or functionally unbundled
as a division, that owns or operates for compensation in this state equipment
or facilities to transmit or distribute electricity at retail, except for
facilities necessary to interconnect a generation facility with the transmission
or distribution network, a facility not dedicated to public use, or a facility
otherwise excluded from the definition of electric utility in a qualifying
power region certified under the Public Utility Regulatory Act §39.152.
Transmission and distribution business unit does not include a municipally
owned utility/electric cooperative that owns, controls, or is an affiliate
of the transmission and distribution business unit if the transmission and
distribution business unit is organized as a separate corporation or other
legally distinct entity. Except as specifically authorized by statute, a transmission
and distribution business unit shall not provide competitive energy-related
activities.
(139)
Transmission and distribution utility (TDU)--A person
or river authority that owns, or operates for compensation in this state equipment
or facilities to transmit or distribute electricity, except for facilities
necessary to interconnect a generation facility with the transmission or distribution
network, a facility not dedicated to public use, or a facility otherwise excluded
from the definition of "electric utility", in a qualifying power region certified
under the Public Utility Regulatory Act (PURA) §39.152, but does not
include a municipally owned utility or an electric cooperative. The TDU may
be a single utility or may be separate transmission and distribution utilities.
(140)
Transmission line--A power line that is operated at 60
kilovolts (kV) or above, when measured phase-to-phase.
(141)
Transmission service--Service that allows a transmission
service customer to use the transmission and distribution facilities of electric
utilities, electric cooperatives and municipally owned utilities to efficiently
and economically utilize generation resources to reliably serve its loads
and to deliver power to another transmission service customer. Includes construction
or enlargement of facilities, transmission over distribution facilities, control
area services, scheduling resources, regulation services, reactive power support,
voltage control, provision of operating reserves, and any other associated
electrical service the commission determines appropriate, except that, on
and after the implementation of customer choice in any portion of the Electric
Reliability Council of Texas (ERCOT) region, control area services, scheduling
resources, regulation services, provision of operating reserves, and reactive
power support, voltage control and other services provided by generation resources
are not "transmission service".
(142)
Transmission service customer--A transmission service
provider, distribution service provider, river authority, municipally-owned
utility, electric cooperative, power generation company, retail electric provider,
federal power marketing agency, exempt wholesale generator, qualifying facility,
power marketer, or other person whom the commission has determined to be eligible
to be a transmission service customer. A retail customer, as defined in this
section, may not be a transmission service customer.
(143)
Transmission service provider (TSP)--An electric utility,
municipally-owned utility, or electric cooperative that owns or operates facilities
used for the transmission of electricity.
(144)
Transmission system--The transmission facilities at or
above 60 kilovolts (kV) owned, controlled, operated, or supported by a transmission
service provider or transmission service customer that are used to provide
transmission service.
This agency hereby certifies that the adoption has been
reviewed by legal counsel and found to be a valid exercise of the agency's
legal authority.
Filed with the Office of
the Secretary of State on February 20, 2003.
TRD-200301286
Rhonda G. Dempsey
Rules Coordinator
Public Utility Commission of Texas
Effective date: March 12, 2003
Proposal publication date: November 8, 2002
For further information, please call: (512) 936-7308