Oncor issued a market notice informing REPs of how it will transition state colleges and universities to standard Oncor rates, as the Texas Supreme Court recently ruled that state colleges and universities are not eligible for a statutory rate discount for utility customers, as the state colleges and universities are no longer customers of the utility under restructuring.

See our prior story here on the Supreme Court's decision, which implicates REPs' obligations with respect to TDU rate credits and pass-throughs

While in a 2008 rate case, the PUC ruled that the state colleges are ineligible for the discount (as affirmed by the Supreme Court), a stipulation adopted in a subsequent 2011 Oncor rate case reinstated the discount pending resolution to the contrary from the legislature or courts.

Specifically, Oncor noted in the market notice that in Finding of Fact No. 38 of the Final Order in Docket No. 38929 (Oncor's 2011 and most recent rate case), the PUC found that: "Consistent with the modified stipulation, Oncor will reinstate the state colleges and universities discount rider (Rider SCUD) without passing on any revenue shortfall to customers. If subsequent legislation eliminates or changes Rider SCUD, or upon a final, non-appealable court order that Rider SCUD is not applicable under current law, Oncor will change or eliminate the Rider SCUD discount consistent with any such legislation or court order. If Rider SCUD is changed or eliminated, any such change or elimination shall take effect prospectively following the effective date of applicable legislation or the issuance of a mandate by the court of last resort. No surcharge will be implemented or applied to recoup any Rider SCUD discount."

Oncor noted in the market notice that the Texas Supreme Court recently decided that PURA Section 36.351, which requires electric utilities to discount charges for service provided to state college and university facilities, does not apply to TDUs because they provide service to REPs, not to the REPs’ customers. See our prior story for a full discussion on the court's findings, and its implications for TDU pass-throughs and pricing

Oncor noted in the market notice that the Court’s decision is now final and non-appealable, and as soon as the Court issues its mandate, which Oncor anticipates will occur on or about February 17, 2017, Oncor will immediately file with the PUC a compliance tariff filing that eliminates the SCUD effective the date of the filing.

Oncor informed REPs in the market notice that, after Oncor files the compliance tariff, Oncor will begin sending rate change 814_20s for all state college and university ESI IDs currently receiving the discount in order to place them on the standard Oncor rates.

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Pricing   Texas   Oncor  

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