| (a) Application. This section applies to investor-owned
electric utilities and non-investor-owned transmission service providers
operating inside the Electric Reliability Council of Texas (ERCOT).
(b) Filing requirements for investor-owned electric
utilities.
(1) Each investor-owned electric utility in the ERCOT
region must file for a comprehensive rate review within 48 months
of the order setting rates in its most recent comprehensive rate proceeding
or other proceeding in which the commission approved a settlement
agreement reflecting a rate modification that allowed the electric
utility to avoid the filing of such a rate case. For an investor-owned
transmission and distribution utility, the filing must include information
necessary for the review of both transmission and distribution rates.
(2) On a year-to-year basis, the commission shall issue
an order extending the filing requirements under paragraph (1) of
this subsection by one year if the following conditions are met:
(A) for an investor-owned electric utility providing
transmission-only service, the utility's most recent earnings monitoring
report, as of 180 days before its scheduled filing date established
by this section, filed in compliance with commission rules and instructions
or as adjusted by the commission to conform with the rules and instructions,
shows that it is earning, on a weather-normalized basis using weather
data for the most recent ten calendar years, less than 50 basis points
above the average of the most recent commission-approved rate of return
on equity for each investor-owned transmission-only utility operating
in ERCOT; or
(B) for an investor-owned transmission and distribution
utility, the utility's most recent earnings monitoring report, as
of 180 days before its scheduled filing date established by this section,
filed in compliance with commission rules and instructions or as adjusted
by the commission to conform with the rules and instructions, shows
that it is earning, on a weather-normalized basis using weather data
for the most recent ten calendar years, less than 50 basis points
above the average of the most recent commission-approved rate of return
on equity for each investor-owned transmission and distribution utility
operating in ERCOT with at least 175,000 metered customers.
(3) The commission may extend the scheduled filing
deadline under paragraphs (1) and (2) of this subsection for good
cause shown or because of resource constraints of the commission.
(4) An investor-owned electric utility qualifying for
an extension under paragraph (2) of this subsection shall submit notice
in the same project as the filing of its most recent earnings monitoring
report at least 180 days before the fourth anniversary of the order
in its most recent comprehensive rate proceeding or other proceeding
in which the commission approved a settlement agreement reflecting
a rate modification that allowed the electric utility to avoid the
filing of such a rate case.
(5) Nothing in this section limits the commission's
authority to initiate a rate proceeding at any time under this title
on the basis of other criteria that the commission determines are
in the public interest, including but not limited to the information
provided in an investor-owned electric utility's earnings monitoring
report.
(c) Transition issues for investor-owned electric utilities.
(1) If an investor-owned electric utility has a comprehensive
rate proceeding pending on the effective date of this rule, the electric
utility is required to file, after the commission's final order in
that pending proceeding, a comprehensive rate proceeding in accordance
with subsection (b) of this section. If the pending proceeding is
withdrawn, dismissed, or otherwise resolved without a final order,
the investor-owned electric utility shall be subject to the transition
timelines in paragraph (2) of this subsection unless the commission
orders otherwise.
(2) All investor-owned electric utilities shall make
their initial filings under subsection (b) of this section on or before
the later of:
(A) 48 months from the order in the investor-owned
electric utility's last comprehensive rate proceeding or other proceeding
in which the commission approved a settlement agreement reflecting
a rate modification that allowed the electric utility to avoid the
filing of such a rate case; or
(B) the following dates:
Attached Graphic
(d) Filing requirements for non-investor-owned transmission
service providers.
(1) After complying with applicable provisions under
subsection (e) of this section, and on an ongoing basis thereafter,
each non-investor-owned transmission service provider is required
to submit a complete application for either a comprehensive transmission
cost of service review under §25.192(g) of this title (relating
to Transmission Service Rates) or an interim update under §25.192(h)
of this title within:
(A) 48 months of the date of the provider's order for
its most recently approved change in transmission service rates under §25.192
of this title if the provider's approved wholesale transmission service
revenue requirement is equal to or greater than one percent of the
amount of the total ERCOT wholesale transmission charges determined
by the commission in the most recent annual update, as of the date
of the provider's order, of the ERCOT four coincident peak (4CP) demand
in accordance with §25.192(b) of this title; or
(B) 96 months of the date of the provider's order for
its most recently approved change in transmission service rates under §25.192
of this title if the provider's approved wholesale transmission service
revenue requirement is less than one percent of the amount of the
total ERCOT wholesale transmission charges determined by the commission
in the most recent annual update, as of the date of the provider's
order, of the ERCOT four coincident peak (4CP) demand in accordance
with §25.192(b) of this title.
(2) Nothing in this section limits the commission's
authority to initiate a rate proceeding at any time under this title
on the basis of other criteria that the commission determines are
in the public interest, including but not limited to the information
provided in a non-investor-owned transmission service provider's earnings
monitoring report.
(e) Transition period for filings by non-investor-owned
transmission service providers. As of the effective date of this subsection,
for a non-investor-owned transmission service provider that has not
since January 1, 2017, had a commission-approved change to its transmission
service rates under §25.192 of this title or does not have a
rate proceeding pending under §25.192 of this title, the following
deadlines apply for submitting a complete application for either a
comprehensive transmission cost of service review under §25.192(g)
of this title or a complete application for an interim update under §25.192(h)
of this title:
Attached Graphic
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