16 Tex. Admin. Code § 25.221 - Electric Cost Separation
(a) Purpose.
The purpose of this section is to identify the costs incurred by electric
utilities that provide retail electric utility service, and to separate such
costs into four categories: generation service, transmission service,
distribution service, and customer service. This section establishes procedures
for cost separation.
(b)
Application. This section shall apply to electric utilities that provide retail
electric service in Texas. This section shall not apply to municipal
utilities.
(c) Definitions. As used
in this section, the following terms have the following meanings unless the
context clearly indicates otherwise:
(1)
Affected utilities--Shall refer to all utilities to which this section
applies.
(2) Customer service--A
service that consists of metering, billing, tariff administration, energy
service, and related services. Customer service does not include generation
service, transmission service, or distribution service; however, it does
include all retail customer interaction necessary for the administration of
tariffs that include charges for generation service, transmission service, and
distribution service.
(3)
Distribution service--A service that ensures safe and reliable delivery of
electric power from the transmission system to retail customers, generally, but
not exclusively, below 60 kilovolts. Distribution service does not include
generation service, transmission service, or customer service.
(4) Generation service--The production and
purchase of electricity for retail customers and the production, purchase, and
sale of electricity in the wholesale power market.
(5) Transmission service--As defined in
§
25.5 of this title (relating to
Definitions). For the purpose of this section, ancillary service, as defined in
§
25.5 of this title, is a component
of transmission service.
(6)
Working day--A day on which the commission is open for the conduct of
business.
(d) Cost
separation. Affected utilities shall maintain a cost-accounting and records
system based on the Federal Energy Regulatory Commission chart of accounts
system, as it may be updated, to ensure that the costs associated with
generation service, transmission service, distribution service, and customer
service are accurately and separately identified. Affected utilities shall
create and maintain any additional accounts necessary to identify and separate
costs incurred to provide retail electric utility service. Within the customer
service category, the utility shall separate its costs on its books in
sufficient detail to track costs specific to unique services, activities, or
functions. The commission may adopt cost separation guidelines to assist
affected utilities in separating their costs.
(e) Compliance filing.
(1) Affected utilities shall report to the
commission on strategies to comply with the cost separation requirements of
this section in accordance with the commission cost separation guidelines. The
filing shall provide a narrative that discusses the types of distribution and
customer service costs and activities that the utility will begin to track
separately to comply with this section. The narrative shall explain the changes
needed in accounting procedures, activity tracking, timekeeping, and other
management functions necessary to track the newly segregated costs, including a
list that identifies costs that the utility will begin to track
separately.
(2) Compliance filing
date. Affected utilities shall make a compliance filing according to the
following schedule:
(A) Investor-owned
electric utilities shall file by December 31, 1998.
(B) All other affected utilities shall file
by December 31, 1999.
Notes
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