TEBA Comments on Transmission Cost Allocation

When new large energy consumers plug into Texas’s ERCOT grid, they directly benefit from investments in transmission lines and systems that deliver electricity those users need. But how can Texas ensure that these new users pay their fair share of transmission costs?

In comments filed with the Public Utility Commission of Texas, TEBA reiterated our proposal for a transmission cost allocation system in which new large loads, for a limited time set by the PUCT, would pay based on their total planned capacity. These loads would then be phased into the current transmission cost allocation system, in which large loads pay for their energy use during peak-use periods (this is known as the Four Coincident Peak (4CP) program).

Long story short: we want to help ensure customers pay what they owe — and to protect existing consumers from overpaying for the electricity that new ones need. You can read our comments here.