16 Tex. Admin. Code § 25.431 - Retail Competition Pilot Projects
(a) Purpose. This section establishes the
parameters under which an electric utility shall offer customer choice for 5.0%
of the load in its Texas service area beginning on June 1, 2001, through the
implementation of retail competition pilot projects. The commission may use
these pilot projects to evaluate the ability of each power region to implement
full customer choice on January 1, 2002, including the operational readiness of
support systems. The pilot projects conducted under this section also will
serve to encourage participation in a competitive retail market and to inform
customers about customer choice.
(b) Application.
(1) This section applies to an electric
utility as defined in the Public Utility Regulatory Act (PURA) §31.002(6).
An electric utility exempt from PURA Chapter 39 in accordance with PURA
§39.102(c) may conduct a customer choice pilot project consistent with the
requirements of this section upon expiration of its exemption. A pilot project
commencing before the adoption of this section may fulfill portions of the
requirements of this section, as determined by the commission.
(2) Other entities, including retail electric
providers (REPs) certified by the commission, and aggregators, power generation
companies, and power marketers registered with the commission may participate
in the pilot projects under the terms and conditions established by this
section.
(c) Intent of
pilot projects. Pilot projects conducted under this section are intended to
implement customer choice for all applicable customers in the same manner in
which full customer choice will be offered starting January 1, 2002, to the
extent practicable. Unless determined otherwise through a subsequent commission
proceeding, or unless stated otherwise in this section, all pilot project
participants who are not retail customers shall abide by all applicable
commission rules, including but not limited to, rules relating to customer
protection and transmission and distribution terms and conditions, and all
rules of an independent organization as defined in PURA §39.151.
(1) Utility's obligation to serve. A utility
shall continue to provide electric service in accordance with PURA and the
commission's substantive rules to requesting customers in its certificated
service area who do not wish to take service from a REP.
(2) Indemnification. Market participants,
including utilities, shall be held harmless for any damages resulting from any
non-willful system or process failures during the pilot project.
(3) Performance standards.
(A) Call center performance may be
compromised by potential large increases of customer inquiries generated
because of the customer education program and pilot project activities. For the
period February 1, 2001 through December 31, 2001, as applicable to each
utility,
(i) a reduction of five percentage
points will be applied to the percentage of calls to be answered in the
allowable time; or
(ii) 5.0% of the
calls with the longest wait time will be subtracted from the calculation of
average answer time.
(B)
An affected utility shall track and report such performance during the pilot
project in accordance with applicable commission rules and orders. An affected
utility does not waive any rights to request an adjustment or waiver of
performance standards directly affected by the customer education program or
pilot project.
(4)
Effect of pre-existing service agreements or contracts.
(A) To the extent a customer is otherwise
eligible to participate in a pilot project in accordance with this section, a
utility shall not challenge a customer's right to participate:
(i) based upon a claimed failure to provide
notice of cancellation in accordance with the requirements of an existing
service agreement, contract, or tariff; or
(ii) in the event that the customer's service
agreement or contract is beyond its primary term.
(B) To the extent a customer is otherwise
eligible to participate in a pilot project in accordance with this section,
customers in the primary term of a service agreement or contract shall have the
right to participate in the pilot project subject to a challenge by the utility
based upon a service agreement or contractual issue other than failure to
provide notice of cancellation in compliance with an existing service
agreement, contract, or tariff. The procedure for any such challenge shall be
as follows:
(i) A utility contending that a
customer that has been otherwise selected to participate in the pilot project
is not eligible to participate, because of an existing service agreement or
contract in its primary term, shall inform the customer not later than seven
days after the date scheduled for the lottery for the applicable class in the
event the class is oversubscribed or the date the customer requests
participation in the event the class is undersubscribed.
(ii) If the customer wishes to dispute the
utility's contention, the customer must, within seven days of receipt of the
utility's notification, so inform the utility. Pending resolution of the
dispute, the utility shall reserve a place for that customer on the participant
list.
(iii) The customer shall be
entitled to participate in the pilot project unless the utility informs the
commission of the pilot project eligibility dispute within seven days of
receipt of the customer's notification to the utility disputing the claim of
ineligibility. Upon receipt by the commission of timely notice of the dispute,
the commission will resolve the dispute within 30 days after filing, and may do
so administratively.
(iv) If the
commission determines that the customer is eligible to participate, the
customer will be included within the pilot project as soon as practicable after
the decision.
(5) Right to withdraw from pilot project. For
any reason, and at a customer's request, the REP and the incumbent utility
shall restore a residential customer's account to pre-pilot project services
and rates. In the event a customer's REP ceases to do business in Texas during
the pilot project, the incumbent utility shall restore any customer's account
to pre-pilot project services and rates at the customer's request.
(6) Application of renewable energy rule. To
encourage access to energy generated from renewable resources by customers
participating in the pilot projects, the renewable energy mandate provisions of
§
25.173 of this title (relating to
Goal for Renewable Energy) will be extended on a voluntary basis during the
pilot projects to the competitive portion of the market, with the following
changes:
(A) Each REP may acquire and retire
renewable energy credits (RECs) consistent with its share of retail
kilowatt-hour sales during the pilot period (June 1, 2001 through December 31,
2001), at a rate consistent with REC obligations for the year 2002, and in the
manner specified in §
25.173(h) of
this title;
(B) Each REC retired
for the pilot period will reduce the REC obligations of the REP for the year
2002 compliance period;
(C) The
voluntary settlement period for the pilot project renewable energy program will
commence January 1, 2002 and end March 31, 2002; and
(D) Penalty provisions of §
25.173(o) of
this title are not applicable.
(7) End of pilot projects. The pilot projects
will end on December 31, 2001, unless determined otherwise by the commission in
accordance with subsection (j) of this section. For an electric utility exempt
from PURA Chapter 39 in accordance with PURA §39.102(c), the pilot
project, if undertaken, will begin and end on dates deemed reasonable by the
commission. A customer will remain with the REP by which he or she was served
on the last day of the pilot project until the customer or the REP elects
otherwise. By participating in the pilot project, a customer does not waive any
right to take service under the price to beat in accordance with PURA
§39.202.
(d)
Definitions. The following terms when used in this section shall have the
following meanings unless the context clearly indicates otherwise:
(1) Aggregation--includes 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 or as part of a voluntary association of electricity customers. An
electricity customer may not avoid any non-bypassable charges or fees as a
result of aggregating its load.
(2)
Customer class--a grouping of customers, specific to the pilot projects, for
the purpose of allocating loads available for customer choice during the pilot
projects. The five customer classes used in the pilot projects are:
(A) Residential--all customers identified by
an electric service identifier (ESI) who purchase electricity under a utility's
residential rate schedule.
(B)
Non-residential, non-demand metered--all customers identified by an ESI who:
(i) do not purchase electricity under a
utility's residential rate schedule; and
(ii) do not purchase electricity under a
utility's municipal or school rate schedule; and
(iii) do not purchase electricity under a
utility's rate schedule that is based on metered or estimated demand during the
twelve month period ending December 31, 2000.
(C) Industrial demand-metered--all customers
identified by an ESI who:
(i) do not purchase
electricity under a utility's residential rate schedule; and
(ii) purchase electricity under a utility's
rate schedule that is based on a metered demand; and
(iii) purchase electricity under a utility's
industrial rate schedules (or are identified as industrial by the utility's
rate code if the utility does not have industrial rate schedules) or have filed
a manufacturing or processing tax exemption certificate with the
utility.
(D) Commercial
and all other demand-metered--all customers identified by an ESI who:
(i) do not purchase electricity under a
utility's residential rate schedule; and
(ii) do not come within the definition of the
industrial demand metered customer class; and
(iii) purchase electricity under a utility's
rate schedule that is based on a metered demand.
(E) Other--The other customer class is
composed of all customers identified by an ESI who:
(i) purchase electricity under a utility's
rate schedule that is based on known usage patterns, not actual metered data
(i.e., unmetered loads); or
(ii)
purchase electricity under a utility's municipal or school rate schedules;
or
(iii) purchase electricity under
utility rate schedules applicable to seasonal agricultural use, such as cotton
gins, irrigation, or grain elevators.
(3) Electric service identifier
(ESI)--premise-based identifier assigned to each electric service delivery
point between a transmission and distribution utility and an end-use load,
which is used in the Texas customer registration system and the Electric
Reliability Council of Texas (ERCOT) settlement system.
(4) Lottery--fair process in which ESIs or
aggregator packets of ESIs are selected for participation in a pilot project by
using standard statistical methods for simple random sampling; each ESI or
aggregator packet of ESIs should have an equal chance of actually being
selected.
(5) Participation--occurs
when the customer takes service from a retail electric provider that is not the
incumbent, integrated utility.
(e) Requirements for participants that are
not retail customers.
(1) A REP must be
certified by the commission pursuant to §
25.107 of this title (relating to
Certification of Retail Electric Providers) prior to participating in pilot
projects established pursuant to this section. An affiliated REP shall not
participate in the certificated service area of the electric utility with which
it is affiliated.
(2) An
aggregator, other than a self-aggregator, must be registered with the
commission pursuant to §
25.111 of this title (relating to
Registration of Aggregators) prior to participating in pilot projects
established pursuant to this section.
(3) A power generation company must be
registered with the commission pursuant to §
25.109 of this title (relating to
Registration of Power Generation Companies) prior to participating in pilot
projects established pursuant to this section. A utility need not be registered
as a power generation company in order to generate power for sale during the
pilot projects.
(4) A power
marketer must be registered with the commission pursuant to §
25.105 of this title (relating to
Registration and Reporting by Power Marketers) prior to participating in pilot
projects established pursuant to this section.
(5) An independent transmission organization
outside of ERCOT may require a market participant to register with that
organization in order to become a wholesale buyer and seller of energy across
the transmission system.
(f) Customer education. Customer education
for the pilot projects shall be conducted as part of the statewide customer
education campaign for introducing customer choice. Included in this campaign
will be announcements regarding the opportunity to participate in the pilot
project and instructions on obtaining further information about the pilot
project. The commission shall mail information written in English and in
Spanish explaining the pilot project to eligible non-residential customers no
later than March 1, 2001, and to eligible residential customers no later than
April 15, 2001. The utility shall provide the commission or its designee with
customer information necessary to implement this subsection. For purposes of
this subsection, §
25.272(g)(1) of
this title (relating to Code of Conduct for Electric Utilities and Their
Affiliates) does not apply with regard to proprietary customer information
released to the commission or its designee. The mailing may contain information
including, but not limited to:
(1) a
description of the pilot project;
(2) the commission's central call center
phone number and Internet website operating to respond to customer questions
and requests for information;
(3) a
list of REPs certified as of a date certain, including the telephone number
and, if available, Internet website address for each REP, and a statement
disclosing that the REP list is continually updated and how the customer can
obtain an updated list; and
(4) a
clear, plain language description of customer choice and the price to
beat.
(g) Customer
choice during pilot projects. The following procedures shall be used for
customers to participate in the pilot projects within the designated time
periods for each applicable customer class.
(1) Administration. For all customer classes,
a REP shall submit requests to switch customers participating in the pilot
projects to the registration agent beginning on May 31, 2001, and power
delivery in conjunction with the pilot projects may begin on June 1, 2001. For
purposes of this section, any electronic submission to the utility shall be
executed using a standard electronic data interface (EDI) protocol (814) to be
included in the utility's compliance filing.
(A) Except where explicitly stated otherwise
in this section, a REP shall electronically submit switch requests to the
utility for counting and validation purposes prior to submitting such requests
to the registration agent. The utility shall maintain a weekly updated list of
non-matching, rejected ESIs on its pilot project Internet website.
(B) Except for the industrial demand-metered
class, there shall be no out-of-cycle meter reading requests submitted for
purposes of the pilot project before July 1, 2001.
(C) Members of the non-residential customer
classes may elect to waive the verification and recision process of the
registration agent.
(D) A
participating customer shall have the right to change from one REP to another
REP in accordance with the switching procedures adopted by the
commission.
(E) Beginning April 16,
2001, a REP shall electronically report to the utility any switch request for a
customer or an aggregation packet with a listing of the ESIs to be switched to
the REP as set forth in this paragraph. After the utility confirms that a
non-residential ESI or aggregation packet is on the associated participant
list, the utility shall submit the ESI to the registration agent. The
registration agent shall keep a record of all the ESIs identified by the
utility for participation in the pilot. The REP shall be responsible for
submitting to the registration agent the ESIs associated with the switch
request to serve. If the ESI identified by the REP matches an ESI identified by
the utility, then the registration agent shall allow the registration process
to continue.
(F) Because the
utility is assigned the responsibility to administer the pilot project, except
for complaints arising under §
25.272 of this title, which may be
made in accordance with procedures established under that section, a claim by
any party of unreasonableness associated with the administration of the pilot
project will first be addressed by the pilot implementation working group
established by subsection (j)(4) of this section. If the complaint is not
resolved within ten working days of initial notification to the pilot
implementation working group, the complaint may be filed with the
commission.
(2)
Residential customer class.
(A) Determination
of the 5.0% load available for customer choice. For residential customers, the
load available for customer choice shall be determined by calculating 5.0% of
the number of ESIs in this customer class as of December 31, 2000. No later
than January 31, 2001, the utility shall determine the amount of load available
for this customer class and shall make that information publicly available
through its pilot project Internet website. For this customer class, 20% of the
5.0% load available for customer choice shall be initially set aside for each
customer class (hereafter referred to as the 1.0% set-aside) for aggregated
loads.
(B) Initiating switching.
Beginning February 15, 2001, a REP may accept authorizations to switch
providers from residential customers. A REP shall notify the utility of such
authorizations for residential customers.
(C) Reaching the 5.0% load limit. For
purposes of this subparagraph the total number of ESIs eligible to switch
determined in subparagraph (A) of this paragraph, less the number of ESIs that
have already authorized a switch, shall be referred to as the amount of
available load.
(i) As each customer in this
class authorizes a switch to another provider, the amount of available load
shall be decremented by one.
(ii)
When the amount of available load reaches zero, no more switch authorizations
shall be accepted.
(3) Non-residential customer classes.
(A) Determination of the 5.0% load available
for customer choice. No later than January 31, 2001, the utility shall make the
results of the following calculations for each non-residential customer class
publicly available through its pilot project Internet website. For each
non-residential customer class, 20% of the 5.0% load available for customer
choice shall be initially set aside for each customer class (hereafter referred
to as the 1.0% set-aside) for aggregated loads.
(i) Non-residential, non-demand metered
customers. For non-residential, non-demand metered customers, the load
available for customer choice shall be determined by calculating 5.0% of the
number of ESIs in that customer class as of December 31, 2000.
(ii) Industrial demand-metered customers;
commercial and all other demand-metered customers. For each of the demand
metered customer classes, the load available for customer choice shall be
determined by calculating 5.0% of the sum of the kilowatts invoiced by the
utility to all ESIs in each customer class for meter reading dates during the
utility's peak demand month in the year 2000. In addition, the utility shall
determine the individual ESI load caps for each demand metered customer class
by calculating 20% of the load available for the pilot project in each
demand-metered customer class.
(iii) Other customers as defined in
subsection (d)(2)(E) of this section. For all other customers, the load
available for customer choice shall be determined by calculating 5.0% of the
sum of the kilowatt-hours for which all ESIs in this customer class were
invoiced by the utility during the twelve month period ending December 31,
2000. In addition, the utility shall determine the individual ESI load caps for
this customer class by calculating 20% of the kilowatt-hours available for the
pilot project in this customer class.
(B) Amount of available load. For purposes of
this paragraph, the total load available for customer choice determined in
subparagraph (A) of this paragraph, less the amount of the customer's ESI load
used for calculation in subparagraph (A) of this paragraph, shall be referred
to as the amount of available load for each non-residential customer class. For
an ESI that was not included in the calculation in subparagraph (A) of this
paragraph, hereinafter called a new ESI, the customer's ESI load shall be
determined as follows:
(i) For the
non-residential, non-demand metered class, a new ESI shall count as one ESI
against the total number of ESIs.
(ii) For the demand-metered classes, the
demand allocated to a new ESI shall be 95% of the utility-estimated demand for
the new ESI.
(iii) For the other
class as defined in subsection (d)(2)(E) of this section, the energy allocated
to a new ESI shall be 95% of the utility-estimated annual kilowatt-hours for
the new ESI.
(C) Open
interest period. Beginning February 15, 2001, and continuing through March 15,
2001, interested customers may request the opportunity to participate in a
utility's pilot project by submitting to the utility through its pilot project
Internet website the account number and zip code information necessary to
determine the customer's ESI. An eligible ESI is one that does not exceed the
individual ESI load cap established in subparagraph (A) of this paragraph. By
March 21, 2001, the utility shall determine if the non-residential customer
classes are either oversubscribed or undersubscribed, including the amount of
load oversubscribed or undersubscribed, and shall make such information
publicly available through its pilot project Internet website.
(i) Participant list. The utility shall
create a list of customers eligible to participate in the pilot project,
referred to as the participant list. The participant list shall include each
ESI and related service address, the name in which the customer is billed, and
customer class as defined in this section. No later than March 21, 2001, the
utility shall make available its integrated voice response (IVR) system or its
pilot project Internet website to allow a customer having an ESI in the lottery
to determine whether its ESI has been selected for the participant list. The
participant list for each customer class shall be provided to the commission no
later than March 21, 2001.
(ii)
Oversubscription. On March 21, 2001, if a non-residential customer class is
oversubscribed, the utility shall use a lottery to develop the participant
list. As each ESI is selected through the lottery, the ESI's load used for the
calculation in subparagraph (A) of this paragraph shall be subtracted from the
total amount of load available for customer choice as determined in
subparagraph (A) of this paragraph. The ESI that causes the 4.0% load limit
(i.e., the 5.0% load limit less the 1.0% set-aside) to be reached shall be the
final ESI selected through the lottery; the 4.0% limit may be exceeded only for
the purpose of accommodating the entire load associated with the final ESI
selected, except that such excess shall not cause the amount of load available
for customer choice to be greater than 4.1%. Once the 4.0% load limit is
reached, the selected ESIs shall be included on the participant list.
(iii) Undersubscription. If a non-residential
customer class is undersubscribed, all eligible ESIs submitted shall be
included on the participant list. Beginning March 21, 2001, any unsubscribed
load will be available for subscription by customers in that customer class on
a first come, first served basis.
(D) Negotiation period. Between March 21,
2001 and May 10, 2001, customers on the participant list may negotiate and
contract with REPs. A REP shall notify the utility of execution of a contract.
If a customer has not entered into a confirmed REP contract for a specific ESI
by May 10, 2001, that ESI shall be removed from the participant list, and the
load associated with that ESI shall be added to the amount of available load.
On May 11, 2001, the utility shall post, on its pilot project Internet website,
a list of submitted ESIs that do not match a customer on the participant list.
REPs shall have until May 14, 2001 to correct any ESI listed by the utility on
May 11, 2001. On May 17, 2001, the utility shall determine the amount of
available load for each non-residential customer class and shall make such
determination publicly available through its pilot project Internet
website.
(E) Monitoring and
adjusting the amount of available load. Following the negotiation period,
participation shall be allowed on a first come, first served basis.
(i) As each non-residential customer in a
class executes a contract, the amount of available load for that class shall be
decremented by the amount of the customer's ESI load used for the calculation
in subparagraph (A) of this paragraph.
(ii) The ESI that causes the amount of
available load to reach zero shall be the final ESI selected; the amount of
available load may drop below zero only for the purpose of accommodating the
entire load associated with the final ESI selected, subject to the limitations
described in subparagraph (C)(ii) of this paragraph.
(4) Aggregated load set-aside.
Customers participating in customer choice may use aggregation to the extent
they choose, and may participate by self aggregation or multiple customer
aggregation. For purposes of pilot project administration, aggregators must
submit to the utility their groupings of utility account numbers and associated
zip codes, or ESIs if available, for participation in the pilot project subject
to the 1.0% set-aside. Such groupings (hereafter referred to as aggregation
packets) shall be submitted by customer class as defined in subsection (d) of
this section with a listing of utility account numbers and associated zip
codes.
(A) Set-aside cap. No single
aggregation packet may contain an ESI or ESIs that represent more than 20% of
the 1.0% set-aside for that customer class, with the exception of the
residential class.
(B) Registration
dates. Aggregators may register non-residential customer class aggregation
packets, subject to the limitation in subparagraph (A) of this paragraph, with
the utility beginning February 15, 2001. Aggregators may register residential
aggregation packets beginning March 1, 2001.
(C) Undersubscription for all non-residential
customer classes. If an aggregation packet contains non-residential ESIs from a
class that is undersubscribed as of April 2, 2001, then that aggregation packet
shall have a reserved allotment of the 1.0% set-aside until May 21, 2001. If by
May 31, 2001, the 1.0% set-aside for aggregation in any non-residential class
is undersubscribed, then the utility shall determine the unused class capacity
and add it to the amount of available load for that class. No later than June
10, 2001, the utility shall make the updated amount of available load publicly
available through the utility's pilot project Internet website.
(D) Aggregation selection process for
customer classes. The eligibility for the 1.0% set-aside for each customer
class shall be determined as follows:
(i)
Residential customer class. Beginning on March 1, 2001, an aggregator may
accept authorizations from residential customers to switch providers as a part
of an aggregation packet. Aggregators shall submit aggregated utility account
numbers and associated service address zip codes to the utility for tracking
the 1.0% set-aside on a first come, first served basis. Aggregation packets
shall be accepted until either the 1.0% set-aside is reached or June 15, 2001,
whichever comes first. If the 1.0% set-aside is not fully subscribed by June
15, 2001, the utility shall determine the unused class capacity and add that
unused capacity to the total amount of available load for the residential
class.
(ii) Non-residential
customer classes. The initial set-aside for each of the non-residential
customer classes shall be 1.0% of the eligible load by customer class. To be
eligible for the aggregation participant list, an aggregator must provide
utility account number and service address zip code information, or ESIs if
available, to the utility by April 2, 2001.
(I) Oversubscription for the non-residential,
non-demand metered customer class. If the total number of ESIs in aggregation
packets submitted for the pilot for a non-residential, non-demand class as of
April 2, 2001 exceeds the 1.0% set-aside, then the utility shall use a lottery
to determine the aggregation participant list for this class. Aggregation
packets eligible for the aggregation participant list shall be selected by the
utility by April 5, 2001. As each aggregation packet is selected through the
lottery, the ESI count shall be subtracted from the total number of ESI
available for the 1.0% set-aside. Aggregation packets shall be selected until
none of the 1.0% set-aside is left. If the last aggregation packet selected
causes the 1.0% set-aside to be exceeded, the selection of the final
aggregation packet for this class shall be done in accordance with subparagraph
(E) of this paragraph. By April 6, 2001, the utility shall determine whether an
aggregation packet has been selected, and shall make such information publicly
available through its pilot project Internet website.
(II) Oversubscription for the industrial
demand-metered and commercial and all other demand-metered classes. If the
total combined load of all aggregation packets submitted for each of the
industrial demand-metered and commercial and all other demand-metered classes
exceeds the 1.0% set-aside as of April 2, 2001, then the utility shall use a
lottery to determine the aggregation participant list for each customer class.
Aggregation packets eligible for the aggregation participant list shall be
selected by the utility by April 5, 2001. As an aggregation packet is selected
through the lottery, the demand for that ESI used to determine the available
capacity for that customer class shall be subtracted from the total demand
amount available for the 1.0% set-aside. Aggregation packets shall be selected
until none of the 1.0% set-aside is left. If the last aggregation packet
selected causes the 1.0% set-aside to be exceeded, the selection of the final
aggregation packet for the class shall be done in accordance with subparagraph
(E) of this paragraph. No later than April 6, 2001, the utility shall make the
list of ESIs eligible for the pilot project publicly available through its
pilot project Internet website.
(III) Oversubscription for the other customer
class as defined in subsection (d)(2)(e) of this section. If the total combined
load of all aggregation packets submitted for the other class exceeds the 1.0%
set-aside as of April 2, 2001, then the utility shall use a lottery to
determine the aggregation participant list for this class. Aggregation packets
eligible for the aggregation participant list shall be selected by the utility
by April 5, 2001. As each aggregation packet is selected through the lottery,
the energy in kilowatt-hours for that ESI used to determine the size of the
customer class shall be subtracted from the total amount of energy available
for the 1.0% set-aside. Aggregation packets shall be selected until none of the
1.0% set-aside is left. If the last aggregation packet selected causes the 1.0%
set-aside to be exceeded, the selection of the final aggregation packet for the
class shall be done in accordance with subparagraph (E) of this paragraph. No
later than April 6, 2001, the utility shall make the list of ESIs eligible for
the pilot project for the class publicly available through its pilot project
Internet website.
(E) Non-residential customer classes
oversubscription lottery selection of last aggregation packet. If the final
aggregation packet chosen in a customer class lottery causes the 1.0% set-aside
for that customer class to be exceeded by more than 10%, that is, if that
aggregation packet increases the size of the customer class to greater than
1.1%, that aggregation packet shall be rejected and another aggregation packet
shall be chosen if available. If no other aggregation packet is available to
fill each non-residential customer class without exceeding the 10% overage
limit, that remaining increment of capacity set-aside will not be subscribed,
but will be added to the amount of available capacity for aggregation for that
non-residential customer class and will be available on a first come, first
served basis. An aggregation packet that does not exceed the 10% overage limit
will be allowed. When the results of the oversubscription lottery are posted by
the utility, the utility shall also make publicly available the information
concerning this available capacity through its pilot project Internet
website.
(F) Contract notification
due date for non-residential customer classes. By May 21, 2001, a REP must
submit verification of executed supply contracts with ESIs and associated zip
code to the utility. Any ESI that has not been validated by a REP by this date
will relinquish its reserved allotment on the aggregation participant list. The
relinquished allotment will then be available for aggregation in that customer
class on a first come, first served basis.
(G) Notification of executed contract for
non-residential customer classes. The REP shall document the existence of an
executed contract for service by electronically submitting a list of ESIs
representing executed contracts to the utility. The utility may rely on receipt
of this list as proof of the existence of an executed contract. The REP shall
file a signed affidavit with the commission attesting to the accuracy of the
ESIs on the list.
(H) Electronic
submissions by aggregators. All submittals required by this section by
aggregators to a utility shall be made in electronic format using a Microsoft
Excel spreadsheet using a spreadsheet template posted on the utility's pilot
project Internet website. A utility will post its templates by January 31,
2001.
(I) New ESIs. For an ESI that
was not included in the calculation in paragraph (3)(A) of this subsection,
hereinafter called a new ESI, the customer's ESI load shall be determined as
follows:
(i) For the non-residential
non-demand metered classes, a new ESI shall count as one ESI against the total
number of ESIs.
(ii) For the
demand-metered classes, the demand allocated to a new ESI shall be 95% of the
utility-estimated demand for the new ESI.
(iii) For the other class as defined in
subsection (d)(2)(E) of this section, the energy allocated to a new ESI shall
be 95% of the utility-estimated annual kilowatt-hours for the new
ESI.
(h) Transmission and distribution rates and
tariffs.
(1) Utilities within ERCOT. In
connection with a utility's pilot project, the utility shall provide
transmission service and distribution service in accordance with the rates for
non-bypassable delivery charges approved by the commission, on an interim basis
for application during the utility's pilot project, in the utility's unbundled
cost of service case filed pursuant to PURA §39.201. Notwithstanding the
provisions of §
22.125 of this title (relating to
Interim Relief), such interim rates shall not be subject to surcharge or refund
if the rates ultimately established differ from the interim rates.
(2) Utilities outside of ERCOT.
(A) Jurisdiction of other regulatory bodies.
Processes utilized by non-ERCOT participants shall support the settlement of
traditional wholesale markets and shall conform to all Federal Energy
Regulatory Commission (FERC) rules and regulations.
(B) Transmission service. In connection with
a utility's pilot project, the utility shall provide transmission service in
accordance with the rates and delivery charges approved by the FERC. A utility
in transition to an independent transmission company (ITC) model shall maintain
on file with the commission a copy of its current FERC-approved open access
transmission tariff (OATT), as well as any proposed amendments to the OATT
submitted to FERC.
(C) Distribution
service. In connection with a utility's pilot project, the utility shall
provide distribution service in accordance with the rates for non-bypassable
delivery charges approved by the commission, on an interim basis for
application during the utility's pilot project, in the utility's unbundled cost
of service case filed pursuant to PURA §39.201. Notwithstanding the
provisions of §
22.125 of this title, such interim
rates shall not be subject to surcharge or refund if the rates ultimately
established differ from the interim rates.
(3) Approval of tariffs. Tariffs implementing
pilot project rates must be filed within ten days following the commission's
determination of those rates. The commission shall approve such tariffs by May
31, 2001, and may do so administratively.
(i) Billing requirements.
(1) A utility shall bill a customer's REP for
non-bypassable delivery charges in accordance with the tariffs established
pursuant to subsection (h) of this section. The REP must pay these
charges.
(2) A REP shall be
responsible for ensuring that its retail customers are billed for electric
service provided. A utility may bill retail customers at the request of a REP,
provided that any such billing service shall be offered by the utility on
comparable terms and conditions for any requesting REP.
(j) Evaluation of the pilot projects by the
commission; reporting. The commission shall evaluate the pilot projects and the
operational readiness of each power region, including its support systems, for
customer choice.
(1) Evaluation criteria.
(A) Criteria for determining the readiness of
a power region for customer choice may include the following:
(i) whether a power region's operational
support systems were tested, and any problems that surfaced during the pilot
project were adequately rectified;
(ii) whether electric system reliability was
significantly affected in an adverse way; and
(iii) any other criteria the commission
determines appropriate.
(B) Criteria for determining whether
commission rules may need modifications or whether certain aspects of retail
competition may require more detailed monitoring by the commission may include
the following:
(i) whether participants in
the pilot projects represented a broad base of customers of diverse demographic
characteristics;
(ii) whether
customers were aware of their rights and responsibilities with respect to
customer choice, and whether such awareness increased for customers as a whole
over the duration of the pilot projects;
(iii) whether a broad range of electric
services and products were offered;
(iv) whether the quality of customer service
with respect to retail customers was affected; and
(v) any other criteria the commission
determines appropriate.
(2) Information used for evaluation of pilot
projects. Evaluation of the pilot projects shall be based on information
including, but not limited to:
(A) reports
filed in accordance with paragraph (3) of this subsection;
(B) surveys of retail customers conducted in
connection with the commission's customer education program; and
(C) the quantity and nature of complaints or
inquiries regarding the pilot project received by the commission's Office of
Customer Protection.
(3)
Reporting by market participants and independent organizations. Each market
participant and independent organization shall file two status reports with the
commission under a single project number as designated by the commission's
central records division. The first status report shall be filed on November
15, 2001, and the second no later than 30 days following the conclusion of the
pilot project. In addition, a utility subject to PURA Chapter 39, Subchapter I,
shall file semi-annual reports with the commission for the duration of its
pilot project to permit the commission to monitor whether proportional
representation is achieved in accordance with subsection (l)(3)(B) of this
section.
(A) Reporting by utilities. Each
status report from a utility shall include:
(i) The percent of load switched by month and
cumulatively, for each customer class as defined in this section, including
supporting data;
(ii) The number of
customers that have withdrawn from the pilot project, by customer
class;
(iii) A summary of any
technical problems encountered during the reporting period, including
resolutions or proposed resolutions, as appropriate, and supporting
data;
(iv) A summary of all
complaints related to the pilot project received by the utility during the
reporting period, including a description of the resolution of the
complaints;
(v) For a utility in
transition to an ITC model, a progress report on the transition to the ITC,
including any updates to the initial compliance filing; and
(vi) Any other information the utility
believes will assist the commission in evaluating the pilot projects and the
readiness of a power region for implementation of full customer
choice.
(B) Reporting by
REPs. Each status report from a REP shall include:
(i) A summary of any technical problems
encountered during the reporting period, including resolutions or proposed
resolutions, as appropriate, and supporting data;
(ii) A summary of all complaints related to
the pilot project received by the REP during the reporting period, including a
description of the resolution of the complaints; and
(iii) Any other information the REP believes
will assist the commission in evaluating the pilot projects and the readiness
of a power region for implementation of full customer choice.
(C) Reporting by an independent
organization. Each status report from an independent organization shall
include:
(i) Data from the registration agent
regarding the average time elapsed between a switch request and the time the
switch became effective;
(ii) Data
from the registration agent, categorized by residential and non-residential
customers, listing the total number of switch requests for each month, as well
as the average number of switch requests per day for each month, and the total
number of switch requests by zip code;
(iii) Data from the registration agent
regarding the number of rejected switch requests resulting from the
anti-slamming verification process;
(iv) A summary of all complaints, categorized
by REP and by utility, related to the pilot project captured in the
registration agent's systems during the reporting period, including a
description of the resolution of the complaints;
(v) A summary from the registration agent and
the independent organization, as applicable, of any technical problems
encountered during the reporting period, including resolutions or proposed
resolutions, as appropriate, and supporting data; and
(vi) An analysis by the independent
transmission organization of system reliability during the pilot
projects.
(D) Other
reporting. At any time, a pilot project participant who is neither a utility
nor a REP may provide the commission with any information the participant
believes will assist the commission in evaluating the pilot projects and the
readiness of a power region for implementation of full customer
choice.
(4) Pilot
implementation working group. The commission will establish a pilot
implementation working group to oversee the pilot projects. The commission or
its designee, based upon a recommendation of the pilot implementation working
group, may revise the operational requirements of the pilot projects in order
to resolve technical problems encountered by market participants.
(5) Extension of pilot projects. Should the
commission determine that it is necessary to delay competition and extend the
pilot projects, it must make such determination by December 31, 2001, except as
otherwise authorized by PURA §39.405.
(k) Pilot project administration and recovery
of associated costs.
(1) Each utility shall
be responsible for administering the pilot project for its service area. Costs
incurred by the utility to administer the pilot project may include expenses
for required communications, third-party outsourcing for any or all
administration tasks, enrollment process, or lottery administration.
(2) The utility may request recovery from the
commission of pilot project administrative costs through:
(A) inclusion in the annual report filed
pursuant to PURA §39.257; or
(B) deferral to future retail transmission or
distribution rates.
(3)
Parties do not waive the right to challenge the utility's ability to seek cost
recovery for costs associated with the pilot projects at the time that such
relief is sought. In addition, nothing in this section shall be construed as
resolving the legal issue of whether utilities may recover costs associated
with the pilot projects.
(l) Compliance filings.
(1) Timing and review. Each utility shall
file a pilot project implementation plan with the commission under a project
number designated by the commission's central records division. An
implementation plan filed under this section shall be reviewed administratively
to determine whether it is consistent with the principles, instructions and
requirements set forth in this section.
(A)
Each utility shall file its implementation plan within 45 days of the
commission's adoption of this section. Such filings do not constitute contested
case proceedings, but are designed to describe the particular application of
this section to the filing utility for the purpose of providing information to
the public and the commission.
(B)
No later than 15 days after filing, interested parties may file comments on the
implementation plan.
(C) No later
than 25 days after filing, commission staff may file a recommendation
concerning the implementation plan.
(D) Unless the commission or presiding
officer determines otherwise, an implementation plan filed under this section
shall be deemed approved on the thirtieth day after filing. If the
implementation plan is not approved, the utility shall resubmit its plan
following consultation with commission staff under a deadline established by
the presiding officer.
(2) Content. The compliance filing shall
address each provision of this section with a brief narrative explaining how
the utility intends to implement that provision, including the utility's pilot
project Internet website address and other contact information, as applicable.
Numerical and formulaic data shall also be provided where applicable.
Specifically, the compliance filing shall detail the calculation of the 5.0%
load available for each customer class, including the 1.0% set-aside, and
demonstrate the calculation with sample data. The final calculations containing
actual data shall be filed with the commission by January 31, 2001.
(3) Additional requirements for non-ERCOT
utilities.
(A) A utility subject to PURA
Chapter 39, Subchapter I, shall include in its transition plan filed pursuant
to PURA §39.402, a plan for extending its pilot project beyond January 1,
2002. The plan for extension of the pilot project shall contain:
(i) The utility's proposed increase(s) in
pilot project participation beyond 5.0%, and proposed timing for such
increase(s), including supporting data and workpapers; and
(ii) A report to the commission on market
conditions in the utility's power region, including an analysis of the level of
competition that the region can support and all relevant data and
workpapers.
(B) A
utility subject to PURA Chapter 39, Subchapter I, shall include in its
compliance filing, a plan to ensure proportional representation in its pilot
project between customers receiving service from the utility in an area that is
certificated solely to the utility and those customers of the utility located
in multiply certificated areas.
(C)
A utility in transition to an ITC model shall include in its compliance filing:
(i) a narrative of how its plan for
transition to an ITC is expected to affect the pilot project, including
relevant supporting data and workpapers; and
(ii)an explanation of any requirements of
market participants that are unique to its service area (e.g., registration
with ITC, data aggregation requirements).
Notes
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