| (1) Frequency. Each TSP in the ERCOT region may apply
to update its transmission rates on an interim basis not more than
once per calendar year to reflect changes in its invested capital.
Upon the effective date of an amendment to §25.193 pursuant to
an order in Project Number 37909, Rulemaking Proceeding to Amend P.U.C.
Subst. R. 25.193, Relating to Distribution Service Provider Transmission
Cost Recovery factors (TCRF), that allows a distribution service provider
to recover, through its transmission cost recovery factor, all transmission
costs charged to the distribution service provider by TSPs, each TSP
in the ERCOT region may apply to update its transmission rates on
an interim basis not more than twice per calendar year to reflect
changes in its invested capital. If the TSP elects to update its transmission
rates, the new rates shall reflect the addition and retirement of
transmission facilities and include appropriate depreciation, federal
income tax and other associated taxes, and the commission authorized
rate of return on such facilities as well as changes in loads. If
the TSP does not have a commission-authorized rate of return, an appropriate
rate of return shall be used.
(2) Reconciliation. An update of transmission rates
under paragraph (1) of this subsection shall be subject to reconciliation
at the next complete review of the TSP's transmission cost of service,
at which time the commission shall review the costs of the interim
transmission plant additions to determine if they were reasonable
and necessary. Any amounts resulting from an update that are found
to have been unreasonable or unnecessary, plus the corresponding return
and taxes, shall be refunded with carrying costs determined as follows:
for the time period beginning with the date on which over-recovery
is determined to have begun to the effective date of the TSP's rates
set in that complete review of the TSP's transmission cost of service,
carrying costs shall be calculated using the same rate of return that
was applied to the transmission investments included in the update.
For the time period beginning with the effective date of the TSP's
rates set in that complete review of the TSP's transmission cost of
service, carrying costs shall be calculated using the TSP's rate of
return authorized in that complete review.
(3) Future consideration of effect on TSP's financial
risk and rate of return. For a TSP that has increased its rates pursuant
to paragraph (1) of this subsection, the commission may, in setting
rates in the next complete review of the TSP's transmission cost of
service, expressly consider the effects of reduced regulatory lag
resulting from the interim updates to the TSP's rates and the concomitant
impact on the TSP's financial risk and rate of return.
(4) Commission processing of application. The commission
shall process an application filed pursuant to paragraph (1) of this
subsection in the following manner.
(A) Notice and intervention deadline. The applicant
shall provide notice of its application to all parties in the applicant's
last complete review of the applicant's transmission cost of service
and all of the distribution service providers listed in the last docket
in which the commission set the annual transmission service charges
for the Electric Reliability Council of Texas. The intervention deadline
shall be 21 days from the date service of notice is completed.
(B) Sufficiency of application. A motion to find an
application materially deficient shall be filed no later than 21 days
after an application is filed. The motion shall be served on the applicant
by hand delivery, facsimile transmission, or overnight courier delivery,
or by e-mail if agreed to by the applicant or ordered by the presiding
officer. The motion shall specify the nature of the deficiency and
the relevant portions of the application, and cite the particular
requirement with which the application is alleged not to comply. The
applicant's response to a motion to find an application materially
deficient shall be filed no later than five working days after such
motion is received. If within ten working days after the deadline
for filing a motion to find an application materially deficient, the
presiding officer has not filed a written order concluding that material
deficiencies exist in the application, the application is deemed sufficient.
(C) Review of application. A proceeding initiated pursuant
to paragraph (1) of this subsection is eligible for disposition pursuant
to §22.35(b)(1) of this title (relating to Informal Disposition).
If the requirements of §22.35 of this title are met, the presiding
officer shall issue a notice of approval within 60 days of the date
a materially sufficient application is filed unless good cause exists
to extend this deadline or the presiding officer determines that the
proceeding should be considered by the commission.
(5) Filing Schedule. The commission may prescribe a
schedule for providers of transmission services to file proceedings
to revise the rates for such services.
(6) DSP's right to pass through changes in wholesale
rates. A DSP may expeditiously pass through to its customers changes
in wholesale transmission rates approved by the commission, pursuant
to §25.193 of this title (relating to Distribution Service Provider
Transmission Cost Recovery Factors (TCRF)).
(7) Reporting requirements. TSPs shall file reports
that will permit the commission to monitor their transmission costs
and revenues, in accordance with any filing requirements and schedules
prescribed by the commission.
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| Source Note: The provisions of this §25.192 adopted to be effective April 13, 1999, 24 TexReg 2874; amended to be effective September 30, 1999, 24 TexReg 8162; amended to be effective December 29, 1999, 24 TexReg 11722; amended to be effective June 20, 2001, 26 TexReg 4440; amended to be effective August 25, 2010, 35 TexReg 7195; amended to be effective April 18, 2012, 37 TexReg 2613; amended to be effective July 5, 2016, 41 TexReg 4805; amended to be effective December 20, 2022, 47 TexReg8267 |
