| service on behalf of the LSP, it will request
that the LSP affiliate demonstrate that it has the capability. The
commission staff will review the LSP affiliate's filing and may initiate
a proceeding with the commission to disqualify the LSP affiliate from
providing POLR service. The LSP affiliate may continue providing POLR
service to ESI IDs currently receiving the service during the pendency
of the proceeding; however, the LSP must immediately assume responsibility
to provide service under this section to customers who request POLR
service, or are transferred to POLR service through a mass transition,
during the pendency of the proceeding.
(5) Designation of an affiliate to provide POLR service
on behalf of an LSP must not change the number of ESI IDs served or
the retail sales in megawatt-hours for the LSP for the reporting period
nor does such designation relieve the LSP of its POLR service obligations
in the event that the LSP affiliate fails to provide POLR service
in accordance with the commission rules.
(6) The designated LSP affiliate must provide POLR
service and all reports as required by the commission's rules on behalf
of the LSP.
(7) The methodology used by a designated LSP affiliate
to calculate POLR rates must be consistent with the methodology used
to calculate LSP POLR rates in subsection (m) of this section.
(8) If an LSP affiliate designated to provide POLR
service on behalf of an LSP cannot meet or fails to meet the POLR
service requirements in applicable laws and Commission rules, the
LSP must provide POLR service to any ESI IDs currently receiving the
service from the LSP affiliate and to ESI IDs in a future mass transition
or upon customer request.
(9) An LSP may elect to reassume provisioning of POLR
service from the LSP affiliate by filing a reversion notice with the
commission and notifying ERCOT at least 30 days in advance.
(l) Mass transition of customers to POLR providers.
The transfer of customers to POLR providers must be consistent with
this subsection.
(1) ERCOT must first transfer customers to VREPs, up
to the number of ESI IDs that each VREP has offered to serve for each
customer class in the POLR area. ERCOT must use the VREP list to assign
ESI IDs to the VREPs in a non-discriminatory manner, before assigning
customers to the LSPs. A VREP must not be assigned more ESI IDs than
it has indicated it is willing to serve pursuant to subsection (i)
of this section. To ensure non-discriminatory assignment of ESI IDs
to the VREPs, ERCOT must:
(A) Sort ESI IDs by POLR area;
(B) Sort ESI IDs by customer class;
(C) Sort ESI IDs numerically;
(D) Sort VREPs numerically by randomly generated number;
and
(E) Assign ESI IDs in numerical order to VREPs, in
the order determined in subparagraph (D) of this paragraph, in accordance
with the number of ESI IDs each VREP indicated a willingness to serve
pursuant to subsection (i) of this section. If the number of ESI IDs
is less than the total that the VREPs indicated that they are willing
to serve, each VREP must be assigned an equal number of ESI IDs, up
to the number that each VREP indicated it was willing to serve for
a given class and POLR area.
(2) If the number of ESI IDs exceeds the amount the
VREPs are designated to serve, ERCOT must assign remaining ESI IDs
to LSPs in a non-discriminatory fashion, in accordance with their
percentage of market share based upon retail sales in megawatt-hours,
on a random basis within a class and POLR area, except that a VREP
that is also an LSP that volunteers to serve at least 1% of its market
share for a class of customers in a POLR area must be exempt from
the LSP allocation up to 1% of the class and POLR area. To ensure
non-discriminatory assignment of ESI IDs to the LSPs, ERCOT must:
(A) Sort the ESI IDs in excess of the allocation to
VREPs, by POLR area;
(B) Sort ESI IDs in excess of the allocation to VREPs,
by customer class;
(C) Sort ESI IDs in excess of the allocation to VREPs,
numerically;
(D) Sort LSPs, except LSPs that volunteered to serve
1% of their market share as a VREP, numerically by MWhs served;
(E) Assign ESI IDs that represent no more than 1% of
the total market for that POLR area and customer class less the ESI
IDs assigned to VREPs that volunteered to serve at least 1% of their
market share for each POLR area and customer class in numerical order
to LSPs designated in subparagraph (D) of this paragraph, in proportion
to the percentage of MWhs served by each LSP to the total MWhs served
by all LSPs;
(F) Sort LSPs, including any LSPs previously excluded
under subparagraph (D) of this paragraph; and
(G) Assign all remaining ESI IDs in numerical order
to LSPs in proportion to the percentage of MWhs served by each LSP
to the total MWhs served by all LSPs.
(3) Each mass transition must be treated as a separate
event.
(m) Rates applicable to POLR service.
(1) A VREP must provide service to customers using
a market-based, month-to-month product. The VREP must use the same
market-based, month-to-month product for all customers in a mass transition
that are in the same class and POLR area.
(2) Subparagraphs (A) - (C) of this paragraph establish
the maximum rate for POLR service charged by an LSP. An LSP may charge
a rate less than the maximum rate if it charges the lower rate to
all customers in a mass transition that are in the same class and
POLR area.
(A) Residential customers. The LSP rate for the residential
customer class must be determined by the following formula: LSP rate
(in $ per kWh) = (Non-bypassable charges + LSP customer charge + LSP
energy charge) / kWh used, where:
(i) Non-bypassable charges must be all TDU charges
and credits for the appropriate customer class in the applicable service
territory and other charges including ERCOT administrative charges,
nodal fees or surcharges, reliability unit commitment (RUC) capacity
short charges attributable to LSP load, and applicable taxes from
various taxing or regulatory authorities, multiplied by the level
of kWh and kW used, where appropriate.
(ii) LSP customer charge must be $0.09 per kWh.
(iii) Beginning on the 10th of each month, an LSP energy
charge must be the average of the actual Real-Time Settlement Point
Prices (RTSPPs) for the applicable load zone for the preceding calendar
month (the historical average RTSPP) multiplied by the number of kWhs
the customer used during that billing period and further multiplied
by 120%. The LSP energy charge must not exceed 160%of the preceding
calendar month's LSP energy charge. The applicable load zone will
be the load zone located partially or wholly in the customer's TDU
service territory with the highest average under the historical average
RTSPP calculation.
(iv) "Number of kWhs the customer used" is based on
usage data provided to the POLR by the TDU.
(B) Small and medium non-residential customers. The
LSP rate for the small and medium non-residential customer classes
must be determined by the following formula: LSP rate (in $ per kWh)
= (Non-bypassable charges + LSP customer charge + LSP energy charge)
/ kWh used, where:
(i) Non-bypassable charges must be all TDU charges
and credits for the appropriate customer class in the applicable service
territory, and other charges including ERCOT administrative charges,
nodal fees or surcharges, RUC capacity short charges attributable
to LSP load, and applicable taxes from various taxing or regulatory
authorities, multiplied by the level of kWh and kW used, where appropriate.
(ii) LSP customer charge must be $0.09 per kWh.
(iii) Beginning on the 10th of each month, LSP energy
charge must be the average of the actual RTSPPs for the applicable
load zone for the preceding calendar month multiplied by the number
of kWhs the customer used during that billing period and further multiplied
by 125%. The LSP energy charge must not exceed 160% of the preceding
calendar month's LSP energy charge. The applicable load zone will
be the load zone located partially or wholly in the customer's TDU
service territory with the highest average under the historical average
RTSPP calculation.
(iv) "Number of kWhs the customer used" is based on
usage data provided to the POLR by the TDU.
(C) Large non-residential customers. The LSP rate for
the large non-residential customer class must be determined by the
following formula: LSP rate (in $ per kWh) = (Non-bypassable charges
+ LSP customer charge + LSP demand charge + LSP energy charge) / kWh
used, where:
(i) Non-bypassable charges must be all TDU charges
and credits for the appropriate customer class in the applicable service
territory, and other charges including ERCOT administrative charges,
nodal fees or surcharges, RUC capacity short charges attributable
to LSP load, and applicable taxes from various taxing or regulatory
authorities, multiplied by the level of kWh and KW used, where appropriate.
Cont'd... |
