Texas Register, Volume 13, Number 60, Pages 3791-3856, August 5, 1988 Page: 3,810
3791-3856 p. ; 28 cm.View a full description of this periodical.
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(A)[(i)] Interest shall be paid
or collected by the utility at its composite
cost of capital, as established by the com-
mission, during the period the over- or
under-recoveries occurred. [rates were in
effect] Such interest shall be calculated on
the cumulative monthly over- or under-
recovery balance.
(B)[(ii)] Rate class as used in
this paragraph [subparagraph] shall mean
all customers taking service under the same
tariffed rate schedule, or a group of sea-
sonal agricultural customers as identified by
the utility.
(C)[(iii)] Interclass alloca-
tions of over- or under-recoveries [re-
funds] including associated interest shall be
developed on a month-by-month basis and
shall be based on the historical kilowatt-
hour usage of each rate class for each
month during the period in which the cumu-
lative over- or under-recovery [over-
recovery] occurred, adjusted for line losses
using the same commission approved loss
factors that were used in the utility's appli-
cable fixed or interim fuel factor.
(D)[(iv)] Intraclass alloca-
tions of over- or under-recoveries [re-
funds] shall depend on the voltage level at
which the customer receives service from
the utility. Retail customers who receive
service at transmission voltage levels, all
wholesale customers, and any groups of
seasonal agricultural customers as identified
by the utility, shall be given credits or
charges [refunds] based on their individual
actual historical usage recorded during each
month of the periods in which the cumula-
tive over- or under-recovery [over-
recovery] occurred, adjusted for line losses
if necessary. All other customers shall be
given credits or charges [refunds] based
on the historical kilowatt-hour usage of
their rate class.
(E)[(v)] All refunds shall be
made through a one-time bill credit unless it
can be shown that this method would pro-
vide an incentive for customers to benefit
from an abnormal pattern of [excessive]
usage of electricity. However, refunds may
be made by check to municipally-owned
utility systems if so requested. Retail cus-
tomers who receive service at transmission
voltage levels, all wholesale customers, and
any groups of seasonal agricultural custom-
ers as identified by the utility shall be given
a lump sum credit. All other customers shall
be given a credit based on a refund factor
which will be applied to their kilowatt-hour
usage over a one-month period. This refund
factor will be determined by dividing the
amount of refund allocated to each rate
class, by forecasted kilowatt-hour usage for
the class during the month in which the
refund will be made.(F) All recoupments of
under-recovery balances shall be made in
the same manner as refunds under
subparagraph (E) of this paragraph ex-
cept that recovery factors may be applied
over a specified period.
(9)[(H)] Final reconciliation of
fuel costs shall be made at the time of the
utility's general rate case or reconciliation
proceeding and shall cover all months fol-
lowing the utility's last final reconciliation
through the most current month for which
records are available. Any affected person,
or the commission's general counsel, may
file a petition for a reconciliation proceed-
ing, provided such petition may only be
filed if it has either been over one year
since the utility's last final reconciliation or
the utility has materially under-recovered its
known or reasonably predictable fuel costs.
In reconciliation of fuel costs the utility
shall have the burden of proving that:
(A)[(i)] it has generated elec-
tricity efficiently;(B)[(ii)]
fective cost controls;it has maintained ef-
(C)[(iii)] for all nonaffiliated
fuel and fuel-related contracts, its contracts
[contract negotiations] have produced the
lowest reasonable cost of fuel to ratepayers.
To the extent that the utility does not meet
its burden of proof, the commission shall
disallow the portion of fuel costs that it
finds to be unreasonable;
(D)[(iv)] for all fuel acquired
from or provided by affiliates of the utility,
all fuel-related affiliate expenses are reason-
able and necessary, and that the prices
charged to the utility are no higher than
prices charged by the supplying affiliate to
its other affiliates or divisions or to unaffili-
ated persons or corporations for the same
item or class of items.
(i)[(I)] The affiliate fuel
price shall be at cost; no return on equity or
equity profit may be included in the affiliate
fuel price. The commission may consider
the inclusion of affiliate equity return in
rate of return and rate base during the utili-
ty's general rate case; however, affiliate
equity return or profit shall not be consid-
ered part of fuel cost.
(i)[(II)] Operational in-
vestigations of all affiliate fuel suppliers
and fuel supply services shall be performed
at the discretion of the commission. The
commission may use the results of such
investigations during a succeeding general
rate cases, fuel cost reconciliation proceed-
ings, emergency request proceedings, and
elsewhere as it deems appropriate.
(iii)[(II)] The affiliated
companies shall establish, maintain, andprovide for commission audit all books and
records related to the cost of fuel. These
records shall explicitly identify all salaries,
contract expenses, or other expenses paid or
received among any affiliated companies,
their employees, or contract employees.
[Under recovery reconciliation shall be
granted only for that portion of fuel costs
increased by conditions or events beyond
the control of the utility.]
(10O)[(I)] Upon final reconcilia-
tion, in determining the final over-or under-
recovery amount, interest shall be paid by
the utility or to the utility in reconciliation
of any over- or under-recovery of fuel costs
at the company's [utility's] composite cost
of capital as established by the commission
in connection with the utility's base rates in
effect during the periods the over- or under-
recovery occurred. Such interest shall be
calculated on the cumulative monthly over-
or under-recovery balance. Upon final rec-
onciliation, if refunds are owed to the utili-
ty's ratepayers, they shall be made in
accordance with the provisions of para-
graph (8)(B)-(D) [subparagraph (G)(ii)(iv)]
of this subsection [paragraph] and, if re-
coupment of under-recovery balances is
allowed, such recoupment will be made
in accordance with the provisions of
paragraph (8)(F) of this subsection.
(d) Purchased power cost recov-
ery.
(1)[(3)] The provisions of this
paragraph apply to all investor-owned elec-
tric distribution utilities, river authorities,
and cooperative-owned electric utilities.
(A) An electric utility which
purchases electricity at wholesale pursuant
to rate schedules approved, promulgated, or
accepted by a federal or state authority or
from qualifying facilities may be allowed to
include within its tariff a purchased power
cost recovery factor (PCRF) clause which
authorizes the utility to charge or credit its
customer for the cost of power and energy
purchased to the extent that such costs
varies from the purchased power cost uti-
lized to fix the base rates of the utility.
Purchased electricity cost includes all
amounts chargeable for electricity under the
wholesale tariffs pursuant to which the elec-
tricity is purchased and amounts paid to
qualifying facilities for the purchase of ca-
pacity and/or energy. The terms and condi-
tions of such PCRF clause, which may
include the method in which any refund or
surcharge from the utility's wholesale sup-
plier will be passed on to its customers,
shall be approved by an order of the com-
mission.
(B) Any difference between
the actual costs to be recovered through the
PCRF and the actual PCRF revenues recov-
ered shall be credited or charged to the
utility's ratepayers in the second succeeding
billing month unless otherwise approved by
the commission.13 TexReg 3810 August 5, 1988 Texas Register
Texas Register
13 TexReg 3810 August 5, 1988
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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/m1/20/: accessed July 17, 2024), University of North Texas Libraries, The Portal to Texas History, https://texashistory.unt.edu.; crediting UNT Libraries Government Documents Department.