Texas Register, Volume 13, Number 60, Pages 3791-3856, August 5, 1988 Page: 3,808
3791-3856 p. ; 28 cm.View a full description of this periodical.
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subsection shall be required and such
publication shall be within seven days
after the filing, setting forth the level and
the effective date of the proposed interim
fuel factors, or refund or recovery fac-
tors, or both, and the classes of custom-
ers affected; and the copy of the schedule
containing the proposed interim fuel fac-
tors. or refund or recovery factors, or
both, shall be delivered to each affected
municipality within five days of the filing
with the commission.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and
found to be within the agency's authority to
adopt
Issued in Austin, Texas on July 22, 1988.TRD-8807568
Phil y A. Holder
Secretary
Public Utility Commission
of TexasEarliest possible date of adoption: September
5, 1988
For further information, please call: (512)
458-0100
Chapter 23. Substantive Rules
General Rules
* 16 TAC 23.3
The Public Utility Commission of Texas pro-
poses an amendment to 23.3, concerning
the definition of recovery factors.
Hershel Meriwether, acting director of admin-
istration, has determined that for the first five-
year period the proposed section is inr effect
there will be no fiscal implications for state or
local government or small businesses as a
result of enforcing or administering the sec-
ion.
Mr. Meriwether also has determined that for
each year of the first five years the section is
in effect the public benefit anticipated as a
result of enforcing the section will be changes
intended to facilitate the matchings of fuel
purchased power costs with the customers
who consumed the power. Refunds and sur-
charges will be better matched to the appro-
priate customers, also. There is no
anticipated economic cost to individuals who
are required to comply with the section as
proposed.
Comments on the proposal may be submitted
to Phillip A. Holder, Secretary of the Commis-
sion, 7800 Shoal Creek Boulevard, Suite
450N, Austin, Texas 78757, within 60 days
after publication.
The amendment is proposed Texas Civil
Statutes, Article 1446c, 16, which provide
the Public Utility Commission of Texas with
the authority to make and enforce rules rea-
sonably required in the exercise of its powers
and jurisdiction.
233. Definitions. The following words
and terms, when used in this chapter, shall
have the following meanings, unless the
context clearly indicates otherwise.
Recovery factors-Factors by rate
class which will be added to the utility's
fixed fuel factor for specific months tocorrect for material under-recovery bal-
ances.
This agency hereby certifies that the proposal
has been reviewed by legal counsel and
found to be within the agency's authority to
adopt.
Issued in Austin, Texas, on July 22, 1988.TRD-8807567
Phillip A. Holder
Secretary
Public Utility Commission
of TexasEarliest possible date of adoption: September
5, 1988
For further information, please call: (512)
458-0100
o f .
Rate Design
* 16 TAC 23.23
The Public Utility Commission of Texas pro-
poses an amendment to 23.23, concerning
the rate design for electric utility fuel cost
recovery. Three major changes are proposed.
Changes establish an expedited hearing
schedule for changing fixed fuel factors, treat
under and over recoveries more similarly,
and allow investor-owned utilities to imple-
ment power cost recovery factors for recover-
ing purchased power expenses.
Hershel Meriwether, acting director of admin-
istration, has determined that for the first five-
year period the proposed section is in effect
there will be no fiscal implications for state or
local government or small businesses as a
result of enforcing or administering the sec-
tion.
Mr. Meriwether also has determined that for
each year of the first five years the section is
in effect the public benefit anticipated as a
result of enforcing the section will be the
changes intended to facilitate the matching of
fuel purchased power costs with the custom-
ers who consumed the power. Refunds and
surcharges will be better matched to the ap-
propriate customers, also. There is no antici-
pated economic cost to individuals who are
required to comply with the section as pro-
posed.
Comments on the proposal may be submitted
to Phillip A. Holder, Secretary of the Commis-
sion, 7800 Shoal Creek Boulevard, Suite
450N, Austin, Texas 78757, within 60 days
after publication.
The amendment is proposed under Texas
Civil Statutes, Article 1446c, 16, which pro-
vide the Public Utility Commission of Texas
with the authority to make and enforce rules
reasonably required in the exercise of its
powers and jurisdiction.
23.23. Rate Design.
(a) General. In fixing the rates of a
public utility, the commission shall fix its
overall revenues at a level which will per-
mit such utility a reasonable opportunity to
earn a reasonable return on its capital in-
vestment used and useful in rendering ser-
vice to the public over and above its reason-
able and necessary operating expenses.
(b) Electric.
[(1)] Rates shall not be unrea-
sonably preferential, prejudicial, or discrim-inatory, but shall be sufficient, equitable,
and consistent in application to each class
of customers, taking into consideration the
need to conserve energy and resources.
(c) Fuel Cost Recovery.
[(2)] The provisions of this sub-
section [paragraph] apply to all generating
electric utilities.
(1)[(A)] The commission shall
monitor the utility's actual and projected
fuel-related costs and revenues on a
monthly basis. The utility shall maintain
and provide to the commission in a format
specified by the commission monthly re-
ports containing all information required to
monitor monthly fuel-related costs and rev-
enues. This information includes, but is not
limited to, generation mix, fuel consump-
tion, fuel costs, purchased power quantities
and costs, and off-system sales revenues.
(2)[(B)] Known or reasonably
predictable fuel costs shall be determined at
the time of the utility's general rate case,
fuel reconciliation proceeding, or interim
rule proceeding under paragraphs (4), (5),
and (6) [subparagraphs (D) and (E),] of this
subsection [paragraph].
(A)[(i)] In determining
known or reasonably predictable fuel costs,
the commission shall consider all conditions
or events which will impact the utility's
fuel-related cost of supplying electricity to
its ratepayers during the period that the
rates will be in effect. These conditions or
events include generation mix and efficien-
cy, the cost of fuel used to produce the
utility's generation, purchased power costs,
wheeling costs, hydro generation, and other
costs or revenues associated with generated
or purchased power as approved by the
commission.
(B)[(ii)] Purchased power ca-
pacity costs, fuel handling costs, costs asso-
ciated with the disposal of fuel combustion
residuals, railcar maintenance costs, railcar
taxes, and coal brokerage fees will not be
included as known or reasonably predict-
able fuel costs to be recovered through the
fixed fuel factor as defined in paragraph
(3) [subparagraph (C)] of this subsection,
[paragraph] unless the utility demonstrates
that such treatment is justified by special
circumstances.
(3)[(C)] The utility shall recover
its known and reasonably predictable fuel
costs through a fixed fuel factor. The utili-
ty's fixed fuel factor shall be established
during a general rate case, fuel reconcilia-
tion proceeding or interim fuel proceeding
as designated in paragraphs (4), (5), and
(6) [subparagraphs (D) and (E)] of this sub-
section, [paragraph] and shall be deter-
mined by dividing the utility's known or
reasonably predictable fuel cost, as defined
in paragraph (2) [subparagraph (B)] of this
subsection, [paragraph] by the correspond-
ing kilowatt-hour sales during the period in13 TexReg 3808 August 5, 1988 Texas Register *
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Texas. Secretary of State. Texas Register, Volume 13, Number 60, Pages 3791-3856, August 5, 1988, periodical, August 5, 1988; Austin, Texas. (https://texashistory.unt.edu/ark:/67531/metapth220268/m1/18/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.