The Texas Public Utility Commission last week approved a new rule that allows utilities operating solely outside the ERCOT region to apply for a generation-cost recovery rider (GCRR) for capital investments in individual generation facilities (55031).

The rule applies primarily to El Paso Electric, Entergy Texas, Southwestern Electric Power Co. and Xcel Energy’s Southwestern Public Service. It stems from a bill passed (HB 1397) in last year’s state legislature.

PUC Chair DeAnn Walker, pointing to the abundance of renewable facilities already installed and coming online, modified the rule in a memo before the July 2 open meeting to clarify that a utility may include “more than one discrete generation facility” in the rider. Utilities will be allowed to amend their GCRRs to request inclusion of additional generators.

“I feel like where we are with our future generation, most are going to be smaller projects, where you may need to have more than one included in the rider,” Walker told her fellow commissioners.

The commission agreed that if the rule is not working, they can always revisit the issue. Walker said the PUC’s earnings-monitoring process would allow them to determine whether any utilities were taking advantage of the rule.

Walker was the only commissioner present in the PUC’s meeting room. Commissioners Arthur D’Andrea and Shelly Botkin both called in from remote locations.

PUC Extends Customer Relief Program

The commissioners agreed to extend the state’s Electricity Relief Program from July 17 to Aug. 31, citing Gov. Greg Abbott’s decision to curtail certain economic activities in the face of rising coronavirus diagnoses and hospitalizations. An order will be drafted for the commission’s approval during its July 16 open meeting.

The PUC created the program in March to help retail providers’ unemployed customers by shielding them from disconnections for nonpayment and offering bill payment assistance.

“While we certainly wish we could snap our fingers and make this virus go away, it’s clearly with us for the long haul and we need to reflect that in our decisions,” Walker said.

The state reported a record 8,258 COVID-19 confirmed cases on July 4, bringing its total to 195,239. A record 8,181 Texans were hospitalized on Sunday. The state has reported 2,637 deaths.

The program is funded by a rider charge applied to customer bills within the ERCOT region.

Entergy, LCRA Get CCNs

In other actions, the PUC:

• Granted Entergy Texas a certificate of convenience and necessity (CCN) to build, own and operate a 230-kV line and substation north of Houston that is needed to accommodate future load growth. Entergy has reached a settlement with all intervenors on a 9-mile route that is projected to cost $34.1 million. The substation is expected to cost an additional $23.3 million (49715).
• Approved Lower Colorado River Authority’s request for a CCN for a new substation and a 138-kV line connecting the facility with the grid in the Texas Hill Country north of San Antonio. The 22.5-mile project, costing an estimated $64.3 million, is needed to address congestion and voltage issues, LCRA said (49523).