L.M. Sixel in the Houston Chronicle reported that, as of Sept. 5, at least five retail electric providers were not showing updated CenterPoint Energy Houston Electric TDU charges in their listed rates on Power to Choose There are about 45 REP brands in the CEHE area on Power to Choose

New CEHE delivery rates took effect on September 1 due to previously reported changes in the DCRF and TCRF. In aggregate, the volumetric residential distribution charge applicable to REPs increased from about 3.6 cents per kWh to just over 4.0 cents per kWh.

As of approximately 9 a.m. CT, it appears that all but one of the REPs cited in the Chronicle story had either updated their EFLs, or been removed from Power to Choose. The remaining REP, Our Energy, still has an EFL from Aug. 29 listed as of publication time

Sixel's story states, "Consumers who sign up for power plans that list incorrect transmission and distribution fees would still have to pay the higher rates, according to the Public Utility Commission."

We do not believe this is the case.

To clarify, if a customer signed up on Aug 31 using an EFL with the old rates (provided that the EFL stated that TDU rates were a pass-through and/or that any fixed price could change as a result of a change in TDU fees), then the customer could be charged the new, different TDU rates effective Sept. 1. We believe the provision allowing REPs to charge, in the future, new TDU rates that were not known or available at the time of enrollment is what Sixel may be referring to. PUC rules provide that the initial price charged by a REP may be different from the EFL-disclosed price to reflect actual changes [emphasis added] in the Transmission and Distribution Utility (TDU) charges, changes to the Electric Reliability Council of Texas (ERCOT) or Texas Regional Entity administrative fees charged to loads, or changes resulting from federal, state or local laws that impose new or modified fees or costs on a REP that are beyond the REP’s control. A customer signing up on Aug. 31 would experience an "actual change" in TDU rates applicable to the customer effective Sept. 1. While the customer's EFL would have outdated rates, we do not believe they could be called "incorrect" based on when the customer enrolled

In contrast, if a REP on Sept. 5 was presenting to customers an EFL listing the old TDU rates, we believe this would be a violation of §25.475, which requires that, "For a fixed rate product, the EFL shall provide the total average price for electric service reflecting all recurring charges, excluding state and local sales taxes, and reimbursement for the state miscellaneous gross receipts tax, to the customer."

A "recurring charge" is defined as, "A charge for a retail electric product that is expected to appear on a customer’s bill in every billing period or appear in three or more billing periods in a twelve month period. A charge is not considered recurring if it will be billed by the TDU and passed on to the customer and will either not be applied to all customers of that class within the TDU territory, or cannot be known until the customer enrolls or requests a specific service."

The Sept. 1 TDU charges are recurring charges, and given that they were approved and set ahead of time, any EFL, beginning on Sept. 1, was required to have included them in the average EFL rate. A REP that is not reflecting the current TDU charges in the EFL would mean that the EFL did not reflect "all recurring charges" as required by §25.475. Accordingly, we do not believe a REP with the old TDU charges in the EFL could charge the new rates in the first month. We do not believe the REP could claim that it could charge the new TDU rates under the provision allowing price changes due to "actual changes" in TDU rates, because such TDU rate change had already occurred prior to the provision of the EFL to the customer

Sixel also notes that having the old, lower TDU rates reflected in prices gives such plans an advantage in being ranked by lowest price, which is the default view for Power to Choose

See the Houston Chronicle for the story

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Texas   Power to Choose   Pricing  

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