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TITLE 16ECONOMIC REGULATION
PART 2PUBLIC UTILITY COMMISSION OF TEXAS
CHAPTER 25SUBSTANTIVE RULES APPLICABLE TO ELECTRIC SERVICE PROVIDERS
SUBCHAPTER AGENERAL PROVISIONS
RULE §25.5Definitions

In this chapter, the following definitions apply unless the context indicates otherwise:

  (1) Above-market purchased power costs--Wholesale demand and energy costs that a utility is obligated to pay under an existing purchased power contract to the extent the costs are greater than the purchased power market value.

  (2) Affected person--means:

    (A) a public utility or electric cooperative affected by an action of a regulatory authority;

    (B) a person whose utility service or rates are affected by a proceeding before a regulatory authority; or

    (C) a person who:

      (i) is a competitor of a public utility with respect to a service performed by the utility; or

      (ii) wants to enter into competition with a public utility.

  (3) Affiliate--means:

    (A) a person who directly or indirectly owns or holds at least 5.0% of the voting securities of a public utility;

    (B) a person in a chain of successive ownership of at least 5.0% of the voting securities of a public utility;

    (C) a corporation that has at least 5.0% of its voting securities owned or controlled, directly or indirectly, by a public utility;

    (D) a corporation that has at least 5.0% of its voting securities owned or controlled, directly or indirectly, by:

      (i) a person who directly or indirectly owns or controls at least 5.0% of the voting securities of a public utility; or

      (ii) a person in a chain of successive ownership of at least 5.0% of the voting securities of a public utility;

    (E) a person who is an officer or director of a public utility or of a corporation in a chain of successive ownership of at least 5.0% of the voting securities of a public utility; or

    (F) a person determined to be an affiliate under Public Utility Regulatory Act (PURA) §11.006.

  (4) Affiliated electric utility--The electric utility from which an affiliated retail electric provider was unbundled in accordance with PURA §39.051.

  (5) Affiliated power generation company (APGC)--A power generation company that is affiliated with or the successor in interest of an electric utility certificated to serve an area.

  (6) Affiliated retail electric provider (AREP)--A retail electric provider that is affiliated with or the successor in interest of an electric utility certificated to serve an area.

  (7) Aggregation--Includes the following:

    (A) 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, provided that an electricity customer may not avoid any non-bypassable charges or fees as a result of aggregating its load; or

    (B) the purchase of electricity by an electricity customer as part of a voluntary association of electricity customers, provided that an electricity customer may not avoid any non-bypassable charges or fees as a result of aggregating its load.

  (8) Aggregator--A person joining two or more customers, other than municipalities and political subdivision corporations, into a single purchasing unit to negotiate the purchase of electricity from retail electric providers. Aggregators may not sell or take title to electricity. Retail electric providers are not aggregators.

  (9) Ancillary service--A service necessary to facilitate the transmission of electric energy including load following, standby power, backup power, reactive power, and any other services the commission may determine by rule.

  (10) Base rate--Generally, a rate designed to recover the cost of service other than certain costs separately identified and recovered through a rider, rate schedule, or other schedule. For bundled utilities, these separately identified costs may include items such as a fuel factor, power cost recovery factor, and surcharge. Distribution service providers may have separately identified costs such as transition costs, the excess mitigation charge, transmission cost recovery factors, and the competition transition charge.

  (11) Bundled Municipally Owned Utilities/Electric Cooperatives (MOU/COOP)--A municipally owned utility/electric cooperative that is conducting both transmission and distribution activities and competitive energy-related activities on a bundled basis without structural or functional separation of transmission and distribution functions from competitive energy-related activities and that makes a written declaration of its status as a bundled municipally owned utility/electric cooperative pursuant to §25.275(o)(3)(A) of this title (relating to Code of Conduct for Municipally Owned Utilities and Electric Cooperatives Engaged in Competitive Activities).

  (12) Calendar year--January 1 through December 31.

  (13) Commission--The Public Utility Commission of Texas.

  (14) Competition transition charge (CTC)--Any non-bypassable charge that recovers the positive excess of the net book value of generation assets over the market value of the assets, taking into account all of the electric utility's generation assets, any above market purchased power costs, and any deferred debit related to a utility's discontinuance of the application of Statement of Financial Accounting Standards Number 71 ("Accounting for the Effects of Certain Types of Regulation") for generation-related assets if required by the provisions of PURA chapter 39. For purposes of PURA §39.262, book value shall be established as of December 31, 2001, or the date a market value is established through a market valuation method under PURA §39.262(h), whichever is earlier, and shall include stranded costs incurred under PURA §39.263. Competition transition charges also include the transition charges established pursuant to PURA §39.302(7) unless the context indicates otherwise.

  (15) Competitive affiliate--An affiliate of a utility that provides services or sells products in a competitive energy-related market in this state, including telecommunications services, to the extent those services are energy-related.

  (16) Competitive energy efficiency services--Energy efficiency services that are defined as competitive energy services under §25.341 of this title (relating to Definitions).

  (17) Competitive retailer--A retail electric provider; or a municipally owned utility or electric cooperative, that has the right to offer electric energy and related services at unregulated prices directly to retail customers who have customer choice, without regard to geographic location.

  (18) Congestion zone--An area of the transmission network that is bounded by commercially significant transmission constraints or otherwise identified as a zone that is subject to transmission constraints, as defined by an independent organization.

  (19) Control area--An electric power system or combination of electric power systems to which a common automatic generation control scheme is applied in order to:

    (A) match, at all times, the power output of the generators within the electric power system(s) and capacity and energy purchased from entities outside the electric power system(s), with the load within the electric power system(s);

    (B) maintain, within the limits of good utility practice, scheduled interchange with other control areas;

    (C) maintain the frequency of the electric power system(s) within reasonable limits in accordance with good utility practice; and

    (D) obtain sufficient generating capacity to maintain operating reserves in accordance with good utility practice.

  (20) Corporation--A domestic or foreign corporation, joint-stock company, or association, and each lessee, assignee, trustee, receiver, or other successor in interest of the corporation, company, or association, that has any of the powers or privileges of a corporation not possessed by an individual or partnership. The term does not include a municipal corporation or electric cooperative, except as expressly provided by PURA.

  (21) Critical loads--Loads for which electric service is considered crucial for the protection or maintenance of public health and safety; including but not limited to hospitals, police stations, fire stations, critical water and wastewater facilities, and customers with special in-house life-sustaining equipment.

  (22) Customer choice--The freedom of a retail customer to purchase electric services, either individually or through voluntary aggregation with other retail customers, from the provider or providers of the customer's choice and to choose among various fuel types, energy efficiency programs, and renewable power suppliers.

Cont'd...

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