Texas REPs Seek Rehearing Of PUC Decision Denying Designation Of New A/S Cost As Beyond REPs' Control...

Paul Ring | Source: Energy Choice Matters | Posted 01/14/2025

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The Texas Energy Association for Marketers (TEAM) and Alliance for Retail Markets (ARM) have filed for rehearing of the Texas PUC's recent decision denying the REPs' petition that sought to allow REPs to make a one-time adjustment to certain existing fixed rate contracts to reflect the costs of ERCOT Contingency Reserve Service (ECRS), as REPs sought to designate ECRS as an ancillary service product under which REPs incur charges, "beyond the REP's control for a customer's existing contract."

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The Texas Energy Association for Marketers (TEAM) and Alliance for Retail Markets (ARM) have requested a rehearing of the Texas PUC's decision denying Retail Electric Providers' (REPs) petition to adjust certain fixed contracts to include ERCOT Contingency Reserve Service (ECRS) costs. The PUC's ruling indicated that the fixed rate rule encompasses ancillary services and, therefore, adjustments for ECRS costs were not permissible, even for contracts predating ECRS initiation.

Despite the PUC's ruling, REPs argue that recent ERCOT actions suggest that ECRS costs were not adequately factored into existing fixed rates. The REPs seek designation of ECRS as an ancillary service with costs beyond their control for contracts signed before a specific date, emphasizing the importance of understanding regulatory changes affecting fixed rate products for both providers and customers.

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Texas REPs Seek Rehearing Of PUC Decision Denying Designation Of New A/S Cost As Beyond REPs' Control...

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