16 Tex. Admin. Code § 25.239 - Transmission Cost Recovery Factor for Certain Electric Utilities
(a) Application.
The provisions of this section apply to an electric utility that operates
solely outside of the Electric Reliability Council of Texas in areas of Texas
included in the Southwest Power Pool or the Western Electricity Coordinating
Council and that owns or operates transmission facilities.
(b) Definitions.
(1) Approved transmission charges
(ATC)--Wholesale transmission charges approved by a federal regulatory
authority that are not being recovered through the electric utility's other
retail or wholesale rates and that are appropriately allocated to Texas retail
customers. The charges may relate to the use of transmission facilities owned
and operated by another transmission service provider or regional transmission
organization, including transmission-related administrative fees but not
including dispatch fees, congestion charges, costs incurred to hedge congestion
charges, or ancillary service charges.
(2) Transmission invested costs (TIC)--The
net change in the electric utility's transmission investment costs including
additions, upgrades, and retirements as booked in FERC accounts 350-359, and
accumulated depreciation.
(c) Recovery authorized. The commission,
after notice and hearing, may allow an electric utility to recover its
reasonable and necessary costs for transmission infrastructure improvement and
changes in wholesale transmission charges to the electric utility under a
tariff approved by a federal regulatory authority to the extent that the costs
or charges have not otherwise been recovered and are incurred after December
31, 2005. Any such recovery shall be made through the use of a transmission
cost recovery factor (TCRF) approved by an order of the commission. The TCRF
shall be calculated pursuant to subsection (d) of this section. If a utility
has not had a base rate case with a final order issued after December 2005, the
utility shall not be eligible for recovery under this provision without first
obtaining a final order in a base rate case.
(d) Transmission cost recovery factor (TCRF).
The TCRF shall be determined by the following formula:
(e)
Transmission cost recovery factor revenue requirement (RR). For an electric
utility subject to this section, the transmission cost recovery factor revenue
requirement (RR) shall be calculated by using the following formula:
(f)
Setting and amending the TCRF. An electric utility that is subject to this
section may file an application to set or amend a TCRF. The commission staff
may also file an application to amend a TCRF. An electric utility may not apply
to amend its TCRF more frequently than once each calendar year, but a TCRF
shall be reviewed or amended at least once every three years. Upon completion
of a base rate case for a utility, the TCRF shall be set to zero. In a docket
in which the TCRF is reviewed or amended, the commission may order the refund
of any previous over-recovery, but the commission shall not order the surcharge
of any under-recovery. An over-recovery shall be considered to have occurred if
the revenues from the TCRF were greater than the costs that the TCRF was
intended to recover.
(g) TCRF
forms. The commission may develop forms for TCRF applications and for
monitoring the revenues from a TCRF. If the commission develops and approves
such forms, an electric utility shall use the forms as required by the
instructions accompanying the form.
Notes
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