Chair Nelson's Memo on Alternative Ratemaking Report Removes Discussion on Impact on REPs, Pricing
December 16,2016
Texas PUC Chair Donna Nelson has filed a memo with proposed changes to the Texas PUC's report on alternative ratemaking.
Nelson's proposed changes include striking language from a Staff draft which had said that, "The use of inappropriate alternative ratemaking mechanisms could result in uncertain and unintended consequences for the Texas competitive retail market and significantly impact the pricing strategies of retail electric providers."
Nelson's proposed changes retain the conclusion that implementing "substantial" changes in ratemaking as outlined in a consultant's report would be premature at this time and would require further study.
Nelson's proposed changes also retain the conclusion that ratemaking mechanisms for utilities within ERCOT are not in need of major revision.