BLOG: Distribution System Charges to Increase Electric Rates

Several major utilities filed applications at the PUC to adjust charges associated with their electric distribution systems.

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Ratepayers in many parts of Texas should expect to pay a bit more for electricity, beginning in September.

In April several major utilities filed applications at the Texas Public Utility Commission to adjust charges associated with their electric distribution systems. These “Distribution Cost Recovery Factor” adjustments correspond to the cost of new distribution system infrastructure placed in service since the utilities’ last full rate cases.

Interested parties settled the DCRF cases for Oncor Electric Delivery Company, Texas-New Mexico Power Company, and AEP Texas. Pursuant to these agreements, Oncor will increase distribution rates by $69.9 million annually; TNMP will increase distribution rates by $14.3 million annually; and AEP will increase distribution rates by $39.1 million annually.

The PUC on July 31 approved the Oncor and AEP DCRF settlements with minor changes from Chairman DeAnn Walker. On Aug. 13, the PUC approved the TNMP DCRF settlement with minor changes from Chairman Walker.

The agreed rates for each Company’s DCRF will be effective September 1, 2020. You can find more information about each DCRF proceeding on the PUC website. The AEP docket number is 50733; the TNMP docket number is 50731; the Oncor docket number is 50734.

— Patrick Dinnen

Patrick Dinnen, an attorney with Lloyd Gosselink,  specializes in utility issues.