A bill (SB 1945) has been introduced by Texas Sen. Troy Fraser that would permit certain customers at certain municipal utilities to choose their electricity supplier, if the Public Utility Commission found the muni's rates to not be just and reasonable, or dissimilar from rates found in customer choice service areas.

SB 1945 would apply to, "a municipally owned utility that has at least 400,000 customers, is governed by a municipality with a population of less than 1,300,000 and is located within the ERCOT power region."

That universe would include Austin Energy (and we believe only Austin Energy)

SB 1945 provides that, "Notwithstanding any other provision, a customer or group of customers with a total usage of more than 25,000,000 kwh per year may file a petition to have the [Public Utility] commission [of Texas] review current or proposed rates applicable to the petitioning customers."

Upon such a petition, the muni would be required to file a rate application with the PUCT, and the PUCT would review the rates to, "determine whether those rates are just and reasonable.," with the PUCT also required to, "consider whether the rates are consistent with the rates available to similarly situated customers in areas of the state that have access to customer choice."

If the commission finds that the rates are not just and reasonable, or not consistent with the rates available to similarly situated customer areas of the state that have access to customer choice, the commission shall either:

(a) set rates for the petitioning customer or customers that are just, reasonable, and consistent with the rates available to similarly situated customers in areas of the state that have access to customer choice, or

(b) set cost-based transmission and distribution rates for the municipally owned utility and allow a petitioning customer or customers to purchase electricity through a competitive retail electric provider.

Reference is made to "a petitioning customer or customers" being granted customer choice, and although the intent may be that this references only those large customers or group of customers (as defined above) authorized under the bill to petition the PUCT for a review of the muni's rates, we find the language ambiguous enough to arguably mean other customers could petition for electric choice once cost-based T&D rates have been set

Tags:
Texas   Austin Energy   Electric Choice   Deregulation  

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