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NPRR #160 · Revision Request

NPRR160  Elimination of the Non-ERCOT LSE Fee

Approved sponsor Barry Smith w/ AEP posted 2008-10-08 next action Consideration ercot.com
ReasonThe Non-ERCOT LSE fee can and should be eliminated since: (1) The registration systems and applications put in place at the time the fee was implemented are now fully depreciated. (2) The fee is only applies to a single Entity (AEP SWEPCO LSE). (3) Since the inception of the market the systems, they have never been used to intentionally change the service provider for any retail customer within the AEP SWEPCO LSE territory. (4) ERCOT proposed the elimination of this fee in Docket 35785. As a result of ERCOT’s request to withdraw docket 35785, Application Of The Electric Reliability Council Of Texas (ERCOT) For Approval Of The ERCOT System Administration Fee, this PRR is necessary to eliminate a fee that ERCOT has already determined is no longer necessary. ERCOT filing of Docket 35785 states: "The Non-ERCOT Load Serving Entity ("LSE") Fee was originally intended to be assessed to LSEs operating in areas within Texas but outside of the ERCOT region where customer choice is in effect. The fee was originally intended for development and use of the statewide customer registration system administered by ERCOT. At the inception of this fee, it was expected the Non-ERCOT LSE Fee would generate revenue of more than $1 million per year. However, since implementing the Non-ERCOT LSE Fee, all but one LSE has sought and received legislative or regulatory exemptions from paying it. In 2008, the fee was collected from a single entity. ERCOT’s 2009 budget assumes elimination of the Non-ERCOT LSE Fee on January 1, 2009 because most LSEs are now exempted from paying the Non-ERCOT LSE Fee, the Non-ERCOT LSE fee is of diminishing financial significance to ERCOT, and the registration system and associated applications and hardware put in place at the same time the fee was instituted are now fully depreciated."
Created2008-10-23
Approved2009-01-20
Sections Affected
19.6.2
Summary
Eliminate language within protocol Section 9.16.2 which describes the Texas Non-ERCOT LSE fee.
Timeline