| (II) the extent to which the plan will enhance resiliency
of the electric utility's system, mitigate system restoration costs,
reduce the frequency or duration of outages, or improve overall service
reliability for customers during and following a resiliency event;
(III) the extent to which the resiliency plan prioritizes
areas of lower performance;
(IV) the extent to which the resiliency plan prioritizes
critical load as defined in §25.52 of this title (relating to
Reliability and Continuity of Service);
(ii) the estimated time and costs of implementing the
measures proposed in the resiliency plan;
(iii) whether there are more efficient, cost-effective,
or otherwise superior means of preventing, withstanding, mitigating,
or more promptly recovering from the risks posed by the resiliency
events addressed by the resiliency plan; or
(iv) other factors deemed relevant by the commission.
(5) The commission's denial of a resiliency plan is
not a finding on the prudence or imprudence of a measure or estimated
cost in the resiliency plan. Upon denial of a resiliency plan, an
electric utility may file a revised resiliency plan for review and
approval by the commission.
(e) Good cause exception. An electric utility must
implement each measure in its most recently approved resiliency plan
unless the commission grants a good cause exception to implementing
one or more measures in the plan. The commission may grant a good
cause exception if the electric utility demonstrates that operational
needs, business needs, financial conditions, or supply chain or labor
conditions dictate the exception, or if the electric utility has a
pending application for a revised resiliency plan that addresses the
same resiliency events.
(f) Resiliency Plan Cost Recovery. A utility may request
cost recovery for costs associated with a resiliency plan approved
under this section that are not otherwise included in the utility's
rates. If a utility that files a resiliency plan with the commission
does not apply for a rider or rates to recover resiliency plan costs
under paragraph (1) of this subsection, after commission review and
approval of the resiliency plan, the utility may defer all or a portion
of the distribution-related costs relating to the implementation of
the resiliency plan for recovery as a regulatory asset under paragraph
(2) of this subsection, or in a base-rate proceeding. The regulatory
asset may include associated depreciation expense and carrying costs
at the utility's weighted average cost of capital established in the
commission's final order in the utility's most recent base-rate proceeding
in a manner consistent with PURA Chapter 36.
(1) Resiliency Cost Recovery Rider. This paragraph
provides a mechanism for an electric utility to request to recover
certain resiliency-related costs through a resiliency cost recovery
rider (RCRR) outside of a base-rate proceeding or a distribution cost
recovery proceeding as part of a resiliency plan approved under this
section, consistent with Public Utility Regulatory Act (PURA) §38.078(i).
(A) RCRR Requirements. The RCRR rate for each rate
class, and any other terms or conditions related to those rates, will
be specified in a rider to the utility's tariff.
(i) An electric utility must not have more than one
RCRR.
(ii) An electric utility with an existing RCRR may
apply to amend the RCRR to include additional costs associated with
an updated resiliency plan under PURA §38.078(g).
(iii) An electric utility may request an RCRR established
under this section take effect at any time, except that before an
RCRR established under this section may take effect:
(I) all distribution investment included in the RCRR
must be providing service to the electric utility's customers, and
(II) the commission must approve RCRR rates in accordance
with clause (iv) of this subparagraph.
(iv) An electric utility must submit a separate application
requesting RCRR rates.
(I) The utility must provide notice of its application,
using a reasonable method of notice, to the parties listed in subsection
(d)(1) of this section.
(II) The RCRR rate request must include: the final
amount of resiliency-related distribution invested capital closed
to plant and in service to be included in the RCRR rates, values necessary
to calculate RCRR rates, attachments demonstrating the calculation
of RCRR rates consistent with this section, and workpapers supporting
the application.
(III) The commission will enter a final order on the
application for RCRR rates under this section not later than the 60th
day after the date the complete updated request is filed. The commission
may extend the deadline for not more than 30 days for good cause.
(v) An electric utility must provide notice, using
a reasonable method of notice, of the approved rates and effective
date of the approved rates to retail electric providers that are authorized
by the registration agent to provide service in the electric utility's
distribution service area not later than the 45th day before the date
the rates take effect.
(vi) As part of its next base-rate proceeding or distribution
cost recovery factor proceeding for the electric utility, the electric
utility may request to include its remaining unrecovered costs included
in its RCRR in that proceeding and must request that RCRR rates be
set to zero as of the effective date of rates resulting from that
proceeding.
(B) Calculation of RCRR Rates. The RCRR rate for each
rate class must be calculated according to the provisions of this
subparagraph and subparagraphs (C) and (D) of this paragraph.
(i) The RCRR rate for each rate class will be calculated
using the following formula: RCRRCLASS =
RRCLASS / BDC-CLASS
(ii) The values of the terms used in this paragraph
will be calculated as follows:
(I) RRCLASS = RRTOT * ALLOCC-CLASS
(II) RRTOT = ((RNDC
* RORRC ) + RDDEPR + RNDCFIT + RDOT) -
IDCCR
(III) ALLOCC-CLASS = ALLOCRC-CLASS * (BDC-CLASS /
BDRC-CLASS ) / &Sgr; (ALLOCRC-CLASS * (BDC-CLASS /
BDRC-CLASS ))
(IV) IDCCR = &Sgr; (DISTREVRC-CLASS
* %GROWTHCLASS ) - DCRFLGA
(V) DISTREVRC-CLASS =
(DICRC-CLASS * RORAT )
+ DEPRRC-CLASS + FITRC-CLASS
+ OTRC-CLASS with the variables
in this formula as defined in §25.243 of this title.
(VI) %GROWTHCLASS = The
greater of ((BDC-CLASS - BDRC-CLASS ) / BDRC-CLASS )
or zero.
(iii) The terms used in this paragraph represent or
are defined as follows:
(I) Descriptions of calculated values.
(-a-) RCRRCLASS -- RCRR
rate for a rate class.
(-b-) RRCLASS -- RCRR
class revenue requirement.
(-c-) RRTOT -- Total RCRR
Texas retail revenue requirement.
(-d-) ALLOCC-CLASS --
RCRR class allocation factor for a rate class.
(-e-) IDCCR -- Incremental distribution capital cost
recovery.
(-f-) DISTREVRC-CLASS --
Distribution Revenues by rate class based on Net Distribution Invested
Capital from the most recently completed comprehensive base-rate proceeding.
(-g-) %GROWTHCLASS - Growth
in billing determinants by class.
(II) RCRR billing determinants and distribution investment
values.
(-a-) BDC-CLASS -- RCRR
billing determinants.
(-b-) RNDC -- Resiliency-related net distribution invested
capital.
(-c-) RDDEPR -- Resiliency-related distribution invested
capital depreciation expense.
(-d-) RNDCFIT -- Federal income tax expense associated
with the return on the resiliency-related net distribution invested
capital.
(-e-) RDOT -- Other revenue-related tax expense associated
with the resiliency-related net distribution invested capital as well
as appropriate associated ad valorem tax expense.
(III) Baseline values. The following values are based
on those values used to establish rates in the electric utility's
most recent base-rate proceeding or distribution cost recovery factor
proceeding, or if an input to the RCRR calculation from the electric
utility's most recently completed base-rate proceeding is not separately
identified in that proceeding, it will be derived from information
from that proceeding:
Cont'd... |
