TX Bill Would Extend TDUs’ Ability To Rely on Alternative Ratemaking In Assessing Charges to REPs
February 26,2015
A Texas bill (SB 774) would extend until September 1, 2019 the ability for distribution service providers to establish rates charged to retail electric providers through non-rate case periodic rate adjustments, meaning alternative ratemaking mechanisms such as the distribution cost recovery factor
Currently, such authority to use alternative ratemaking mechanisms expires January 1, 2017
The bill would require the Public Utility Commission to report on alternative ratemaking mechanisms in January 2019, with such report now including, "an analysis of alternative ratemaking mechanisms adopted by other states and recommendations regarding appropriate reforms to the ratemaking process in this state to provide efficient and adequate oversight of electric utilities."