| (a) Applicability. This section provides a mechanism
for an electric utility to request to recover investment in a power
generation facility through a generation cost recovery rider (GCRR)
outside of a base-rate proceeding. This section applies only to an
electric utility that operates solely outside of the Electric Reliability
Council of Texas.
(b) Definitions. The following terms, when used in
this section, have the following meanings unless context indicates
otherwise.
(1) GCRR billing determinant--Each rate class's annual
billing determinant (kilowatt-hour, kilowatt, or kilovolt-ampere)
for the previous calendar year.
(2) Generation invested capital--The parts of the electric
utility's invested capital for a power generation facility that will
be functionalized as generation plant properly recorded in Federal
Energy Regulatory Commission (FERC) Uniform System of Accounts 303
through 347, 352, and 353 when the generation facility is placed into
service.
(3) Power generation facility--A discrete facility
or facilities constructed or purchased by an electric utility for
use in generating electricity for public service by the electric utility,
and the cost of which is not included in the electric utility's base
rates. The term "facility" may encompass different parts of a single
generation facility that begins providing service to the electric
utility's customers on the same date.
(4) Power generation facility invested capital--Generation
invested capital associated with a power generation facility included
in the electric utility's GCRR that will be placed into service before
or at the time the GCRR becomes effective under subsection (g) of
this section.
(5) Power generation facility net invested capital--Power
generation facility invested capital that is adjusted for accumulated
depreciation and any changes in accumulated deferred federal income
taxes, including changes to excess accumulated deferred federal income
taxes, associated with all power generation facilities included in
the electric utility's GCRR.
(6) Weather-normalized--Adjusted for normal weather
using weather data for the most recent ten-year period prior to the
year from which the GCRR billing determinants are derived.
(c) GCRR Requirements. The GCRR 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.
(1) An electric utility must not have more than one
GCRR.
(2) An electric utility with an existing GCRR may apply
to amend the GCRR to include the electric utility's actual capital
investment in a power generation facility and additional power generation
facilities.
(3) Any GCRR established under this section will take
effect on the date the power generation facility begins providing
service to the electric utility's customers. Any amendment to an existing
GCRR for an additional power generation facility will take effect
on the date that the additional power generation facility begins providing
service to the electric utility's customers.
(4) As part of the next base-rate proceeding for the
electric utility, the electric utility must request to move all investment
being recovered in a GCRR into base rates and the GCRR will be set
to zero.
(d) Calculation of GCRR Rates. The GCRR rate for each
rate class must be calculated according to the provisions of this
subsection and subsections (e) and (f) of this section.
(1) The GCRR rates will not take into account changes
in the number of the electric utility's customers and the effects
that energy consumption and energy demand have on the amount of revenue
recovered through the electric utility's base rates.
(2) The GCRR rates must not include estimated costs.
(3) The GCRR rate for each rate class will be calculated
using the following formula: GCRRCLASS =
RRCLASS / BDC-CLASS
(4) The values of the terms used in this subsection
will be calculated as follows:
(A) RRCLASS = RRTOT * ALLOCC-CLASS
(B) RRTOT = TRAF * ((PGFIC
* RORRC ) + PGFDEPR + PGFFIT + PGFOT)
(C) ALLOCC-CLASS = ALLOCRC-CLASS * (BDC-CLASS /
BDRC-CLASS ) / Σ (ALLOCRC-CLASS * (BDC-CLASS /
BDRC-CLASS ))
(5) The terms used in this subsection represent or
are defined as follows:
(A) Descriptions of calculated values.
(i) GCRRCLASS --GCRR rate
for a rate class.
(ii) RRCLASS --GCRR class
revenue requirement.
(iii) RRTOT --Total GCRR
revenue requirement.
(iv) ALLOCC-CLASS --GCRR
class allocation factor for a rate class.
(B) GCRR billing determinants and power generation
facility values.
(i) BDC-CLASS --GCRR billing
determinants that are weather-normalized.
(ii) PGFIC--Power generation facility net invested
capital.
(iii) PGFDEPR--Power generation facility depreciation
expense.
(iv) PGFFIT--Federal income tax expense associated
with the return on the power generation facility net invested capital,
reduced by any tax credits related to the power generation facility
that are not returned to customers as a credit or other offset to
eligible fuel expense.
(v) PGFOT--Other tax expense associated with the power
generation facility.
(C) 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 if an input to the GCRR calculation
from the electric utility's last base-rate proceeding is not separately
identified in that proceeding, it will be derived from information
from that proceeding:
(i) TRAF--Texas retail jurisdiction production allocation
factor value used to establish rates in the electric utility's last
base-rate proceeding determined under the provisions of subsection
(e) of this section.
(ii) BDRC-CLASS --Rate
class billing determinants used to establish generation base rates
in the last base-rate proceeding. Energy-based billing determinants
will be used for those rate classes that do not include any rate demand
charges, and demand-based billing determinants will be used for those
rate classes that include rate demand charges.
(iii) RORRC --After-tax
rate of return approved by the commission in the electric utility's
last base-rate proceeding.
(iv) ALLOCRC-CLASS --Rate
class allocation factor value determined under the provisions of subsection
(e) of this section.
(e) Jurisdictional and class allocation factors. For
calculating GCRR rates, the baseline jurisdictional and rate-class
allocation factors used to allocate generation invested capital in
the last base-rate proceeding will be used.
(f) Customer classification. For the purposes of establishing
GCRR rates, customers will be classified according to the rate classes
established in the electric utility's most recently completed base-rate
proceeding.
(g) GCRR application. An electric utility may file
an application for a GCRR before the electric utility places a power
generation facility in service. An electric utility may include only
one discrete power generation facility in an application for a GCRR.
An electric utility may file an application to amend its GCRR to include
another discrete power generation facility even if it has another
application to amend its GCRR pending before the commission. The proceeding
for a GCRR application must conform to the requirements of this subsection.
(1) Scope of proceeding. The issues of whether generation
invested capital included in an application for a GCRR complies with
PURA and is prudent, reasonable, and necessary will not be addressed
in a GCRR proceeding.
(2) Notice. The applicant must notify all parties in
the applicant's last base-rate proceeding that an application was
filed. The notice must be provided by first-class mail and mailed
the same day the application is filed. The notice must specify the
docket number assigned to the application and a copy of the application
must be included with the notice.
(3) Parties and intervention. Requests to intervene
must be filed no later than 10 calendar days after the date the application
is filed. Objections to a request to intervene must be filed no later
than five working days after the request is filed. All requests to
intervene must be ruled upon no later than 21 calendar days after
the application is filed.
(4) GCRR forms. If the commission adopts a form for
GCRR applications, an electric utility must file its application using
that form.
Cont'd... |
