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Summary
AEP Texas North Company (TNC) is seeking approval from the Public Utility Commission of Texas (PUCT) to increase its transmission and distribution (T&D) rates charged to the Retail Electric Providers (REPs) as shown below. Once approved, it would be at the REPs’ discretion as to how much, if any, of the increase would be passed along to the end-use customers.
Within the Electric Reliability Council of Texas (ERCOT), the transmission coordinator throughout most of Texas, the transmission component is paid by all end-use customers. Therefore, the requested transmission increase shown below will not be borne solely by the end-use customers in TNC’s service territory, but rather by electric customers all across ERCOT.
| TNC overall impact |
$ Millions |
| Distribution |
$ 16.0 |
| Transmission |
$ 9.0 |
| Total T&D impact |
$ 25.0 |
| TNC distribution impact (1) |
$ Millions |
| Requested amount |
$ 9.8 |
| Expiration of merger credits (2) |
$ 6.2 |
| Total distribution impact |
$ 16.0 |
| TNC transmission impact (3) |
$ Millions |
| Requested amount |
$ 9.0 |
Residential customer impact (1,000 kWh per month) |
| T&D wires increase |
$ 1.24 |
T&D wires percent increase (increase on wires portion only, Less than 25% of overall customer bill) |
3.7% |
| Percent increase on end-use customer total bill (4) |
<1% |
Notes:
(1) TNC’s average distribution percent increase across all customer classes is approximately 14%, including the expiration of the merger credits.
(2) Certain credits related to the AEP/CSW 2000 merger will expire when the rates from this proceeding become effective.
(3) TNC’s increase to its transmission cost of service (TCOS) rate will be $.16 per kW, or approximately 27%.
(4) The percent increase on the end-use customer’s total bill was calculated using information from the PUCT’s Power to Choose website, which showed a WTU Retail Energy bill of $163.00 for September 2006 (the latest month shown on the website). It does not include the CTC refund impacts, which will be in effect from September 2006 through February 2007.
