| (A) Base charge and base charge adder. A base charge applies
to the switchover of a consuming facility served at 480 volts or less. The
base charge is equal to the cost of removing any meter and drop line used
to serve the consuming facility, and shall be specified in the disconnecting
utility's tariff. The switchover fee shall not include the original cost less
depreciation and gross salvage of the meter and drop line for switchovers
for which the base charge applies. A base charge adder that is less than the
base charge must also be specified in the tariff to cover the situation where
a consumer switches more than one consuming facility on the same premises
at the same time. The base charge adder is equal to the cost of removing any
meter and drop line used to serve each additional consuming facility.
(B) Facilities recovery charge. The purpose of the facilities
recovery charge is to recover costs related to idle facilities, other than
meter and drop line costs covered by a base charge or base charge adder.
(i) Availability of facilities recovery charge. The disconnecting
utility may not impose a facilities recovery charge for idle facilities if
the connecting utility or consumer purchases the idle facilities at a price
equal to net book value and signs an agreement indemnifying the disconnecting
utility from liability for the facilities after the purchase of the facilities.
Before a consumer can purchase the facilities, it must prove that it has the
financial resources to protect the disconnecting utility from liability risks
resulting from the sale. Where more than one consumer requests a switchover,
the disconnecting utility may not impose a facilities recovery charge for
idle facilities if the connecting utility purchases the idle facilities and
the common facilities used to serve the consuming facilities being switched,
but not used to serve any consuming facilities not being switched, at a price
equal to replacement cost less depreciation and signs an indemnity agreement.
Replacement cost is equal to: the average original cost of like facilities
installed in the most recent full calendar year for which information is available,
that would be necessary to serve the consuming facilities being switched if
facilities were first installed to serve the consuming facilities at the time
of the switchover requests; plus the cost of easements for the facilities
if the easements were obtained at the time of the switchover requests. The
disconnecting utility also may not impose a facilities recovery charge if
it refuses an offer to purchase under the conditions described in this subparagraph.
(ii) Components of facilities recovery charge. The facilities
recovery charge consists of the net book value (original cost less depreciation)
less net salvage (gross salvage less cost of removal) of the idle facilities.
In determining the net book value of the facilities, the original cost of
the specific facilities should be used. If the original cost of the specific
facilities is not available, the installation date of the facilities shall
be determined or estimated and the average original cost of like facilities
installed by the disconnecting utility in that year shall be used. If average
original cost information is not available for the year in which the idle
facilities were installed, then the average original cost of like facilities
installed in the most recent full calendar year for which information is available
shall be used and shall be deflated to the installation date of the idle facilities.
Where average original cost information is used, the average original cost
information shall be determined using the information for the operating division
in which the consuming facility to be switched is located, if the disconnecting
utility maintains original cost information by division.
(C) Labor charges. Labor charges for removing facilities are
limited to a reasonable estimate of the direct labor cost (salary, insurance,
pension, payroll taxes, etc.) for the time of persons needed to remove the
facilities. No allocation of general overhead labor is allowed, but any necessary
supervisory or engineering labor specific to the removal of the facilities
may be included.
(D) Quantification of charges. The calculation of the base
charge, base charge adder, and facilities recovery charge may involve the
making of estimates. To the extent that there is a range of reasonable estimates
for a particular charge, the estimate at the low end of the range should be
used, so that the amount of the switchover fee will be minimized, but still
be reasonable and in conformance with this section. Unless the consumer agrees
otherwise, there will be no refund or surcharge if the actual cost of performing
the switchover is less than or greater than the switchover fee. Instead of
a utility-specific base charge and base charge adder, the commission may,
through the issuance of an order, establish a single base charge and a single
base charge adder to be used by all electric utilities. Likewise, the commission
may, through the issuance of an order, establish fixed dollar charges for
components of the facilities recovery charge.
(E) Payment of switchover fee and other charges. Before the
connecting utility provides service, the disconnecting utility has the right
to receive payment of the switchover fee and any other outstanding charges.
The connecting utility shall not reimburse the consumer for the switchover
fee, and may pay the switchover fee only if the consumer agrees prior to the
connecting utility's payment of the fee that the consumer will reimburse the
connecting utility for the fee. The agreement must contain a plan for the
payment of the fee within a reasonable period of time.
(2) Procedure for full switchover.
(A) Notice of switchover fee and procedure. Upon receiving
a request for a full switchover, the disconnecting utility must provide the
consumer a document that quantifies the switchover fee within 15 working days.
This document must be in 12 point, non-bold type and must itemize the base
charge, base charge adder, and the facilities recovery charge of the switchover
fee. In addition, the document must itemize the components of the facilities
recovery charge, including a description of the idle facilities, the installation
dates of the idle facilities, the original cost of the idle facilities, the
accumulated depreciation associated with the idle facilities, the depreciation
rates used to calculate the accumulated depreciation, transportation charges
for removing the idle facilities, labor rates, labor hours for removing the
idle facilities, and the gross salvage value of the idle facilities. The document
must also state immediately below these itemizations, in bold, and in not
less than 12 point type: "(Disconnecting utility) may not impose a facilities
recovery charge under the circumstances described in Public Utility Commission
of Texas Substantive Rule §25.27(f)(1)(B)(i). On request, you will be
provided a copy of Rule §25.27."
(B) Sale of both common and idle facilities. If a group of
consumers request switchovers, the switchovers may necessitate that the connecting
utility acquire common and idle facilities in that case. Within 15 working
days of receipt of a request from the connecting utility, the disconnecting
utility must provide by fax and mail a detailed, reasonable estimate of replacement
cost less depreciation for the idle facilities and the common facilities used
to serve the consuming facilities to be switched, but not used to serve any
consuming facilities not being switched.
(C) Offer to purchase facilities. Within five working days
of receipt of an offer to purchase idle and/or common facilities under the
conditions described in paragraph (1)(B)(i) of this subsection, the disconnecting
utility must notify the connecting utility by fax, with copies by mail or
fax to the consumers, whether it accepts or rejects the offer. If the disconnecting
utility rejects the offer, it must also provide revised switchover fees that
delete the facilities recovery charges, at the same time that it provides
notice of rejection of the offer.
(D) Payment of switchover fee and outstanding balances. Until
the switchover fee and all outstanding balances are paid to the disconnecting
utility, neither the disconnecting utility nor the connecting utility is under
any obligation to take steps to make the switchover, and the connecting utility
must not provide service to the consuming facility being switched until it
receives notice from the disconnecting utility that the switchover can proceed.
The disconnecting utility must within the following deadlines from the receipt
of payment, notify the connecting utility by fax that the switchover can proceed:
two working days for payment by cash, money order, cashier's check, or, if
accepted by the disconnecting utility for bill payment, credit card, and five
working days for payment by personal check or other forms of payment.
(E) Deadline for full switchover. Once the disconnecting utility
notifies the connecting utility that the switchover can proceed and once the
connecting utility notifies the disconnecting utility by fax that the consumer
has satisfied the conditions for service from the connecting utility, the
switchover must be completed within ten working days unless the consumer agrees
to a longer schedule, good cause exists for the disconnecting utility not
being able to complete the switchover within ten Cont'd... |
