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Office of Public Engagement  

Guide to the Electric Rate Case Process for Investor-owned Utilities outside ERCOT

Entergy Texas, Southwestern Electric Power Company (SWEPCO), Southwestern Public Service Company (SPS), and El Paso Electric Company are investor-owned electric utilities that provide power generation and electric delivery to customers.

The rates charged by these utilities are set by the Public Utility Commission of Texas (PUCT). The PUCT sets rates that allow the utility to recover the costs of providing electricity along with an opportunity for a reasonable rate of return on their investment.

These utilities must notify customers when they request a rate change from the PUCT. Customers and groups affected by a rate change are entitled to participate in the rate case and express their thoughts about the rate request.

 


Process of an electric rate case

 

Step 1

Application - The utility files an application for a rate change with the PUCT. The application includes financial, engineering, and customer-usage information supporting the new rates.

Step 2

Administrative Completeness - PUCT technical staff and the PUCT's internal administrative law judge determine if the application contains the basic information to proceed with the rate case.

Step 3

Deadline to Intervene - PUCT technical staff and the PUCT's internal administrative law judge determine if the application contains the basic information to proceed with the rate case.

Step 4

Referral to State Office of Administrative Hearings (SOAH) - SOAH is a state agency, separate and independent from the PUCT. SOAH conducts hearings, collects evidence and testimony.

Step 5

Proposal for Decision - After hearing from the different sides and considering the law and evidence, the SOAH judge makes a recommendation to the PUCT Commissioners. The PUCT Commissioners are not bound by the recommendation from the SOAH judge.

Step 6

Open Meeting - The PUCT Commissioners vote on a rate change request during a regularly scheduled meeting open to the public and broadcast online. Duly registered intervenors may speak during the open meeting. They must request "Oral Argument" before the meeting to address the commission.


 

How to Follow Along
  • Using the five-digit docket number, you can read all the documents that are filed related to this case. You can sign up to receive an email notification whenever a new document is filed. This can potentially be hundreds of documents. Follow these instructions for how to receive email notifications.
How to participate
  • The PUCT Office of Public Engagement has more information on how to participate in a rate case.
Types of Rate Cases
  • Comprehensive Rate Case - When utilities need to change their rates in ways that are not covered by one of the specific cost recovery factors (listed below), they submit an application to the PUCT. This is a full review of the utility's revenue and costs. It seeks to determine the rates that are just and reasonable for the utility to provide service.
  • Energy Efficiency Cost Recovery Factor (EECRF) - State law requires electric utilities to offer energy efficiency programs to customers. These programs involve installing energy efficiency measures like insulation, high efficiency lighting and more. In addition, the utilities also offer programs to help schools and local governments reduce operating costs and save energy. Electric utilities recover the costs for these programs through the EECRF.
  • Distribution Cost Recovery Factor (DCRF) - This covers the cost of the smaller poles and wires that you see in your neighborhood. Maintaining and improving the distribution system reduces the number of outages and makes those outages shorter.
  • Transmission Cost Recovery Factor (TCRF) - This covers the costs to build and operate the large towers and wires that carry power long distances from power plants to your local area. The transmission systems are the major highways of the electric grid. Without a strong transmission system, electricity from power plants is backed up and can't get where you need it.
  • Generation Cost Recovery Rider (GCRR) - This allows utilities to recover investment in a power generation facility outside of a comprehensive rate case.