You are now leaving the City of College Station website
City of College Station
CONTACT US
{1}
##LOC[OK]##
Our Community
Accessibility Services
Christmas Parade
City Charter
City History
Contact the City
Recognitions/Rankings
Halloween
Smart City Initiatives
Type of Government
FlashVote Surveys
Mission Statement
Sister Cities
Year in Review
Departments & City Hall
City Hall
Codes, Ordinances and Policies
City Holidays
City Elections
Citizen Committees, Boards and Commissions
Capital Improvement Projects
City Attorney's Office
City Council
City Internal Auditor
City Manager's Office
City Secretary's Office
College Station Utilities
Community Services
Economic Development
Emergency Management
Fire Department
Fiscal Services
Human Resources
Information Technology
Municipal Court
Neighborhood Services
Parks & Recreation
Planning & Development Services
Police Department
Public Communications
Public Works Department
Tourism
University and Community Relations
Residents & Neighborhoods
Adopt-A-Greenway Program
Adopt-A-Street Program
Citizen Committees, Boards and Commissions
Citizen Police Academy
Citizens Fire Academy
Citizens University
Code Enforcement
Community & Neighborhood Planning
Housing Assistance
Maps
Mosquito Abatement Program
New Resident Toolkit
Solid Waste & Recycling Services
Utility Customer Service
Business & Development
Applications
Codes and Ordinances
Credit Access Business Registration
Doing Business with the City – Purchasing
Economic Development
Franchise Agreements
Maps
Pedicab, Taxi & Solicitation Permits
Rental Registration
Right-of-Way Permits
Solid Waste Services
Utility Customer Service
I Want To
Adopt-A-Greenway Application
Apply for a Burn Permit
Apply for a Special Event Permit
Apply for an Historic Marker
Bike Maps
Cleanup Report Form
Connect / Disconnect Utilities
Contact the City
Map Comments and Suggestions Form
Pay a Bill or Fee
Purchase a Cemetery Plot
Register as a Vendor
Register My Credit Access Business
Register My Rental Property
Rent A Space
Report a Recycling Issue
Report a Solid Waste Issue
Report a Street Light Issue
Report a Street or Drainage Issue
Report a Traffic Complaint
Report a Traffic Sign Issue
Report a Traffic Signal Issue
Request a Birth Certificate
Request a Death Certificate
Request a Proclamation
Request a Smoke Alarm
Request an Energy Audit
Request an Irrigation Checkup
Request Public Records
Speak at a Council Meeting
Supply Request Form
View Agendas & Minutes
View Audit Reports
View Budgets & Financial Reports
View Collection Schedule
View Electric Outage Map
View Employment Opportunities
View Maps
View Preparedness and Disaster Guides
View Project HOLD
Our Community
Accessibility Services
Christmas Parade
City Charter
City History
Contact the City
Recognitions/Rankings
Halloween
Smart City Initiatives
Type of Government
FlashVote Surveys
Mission Statement
Sister Cities
Year in Review
Departments & City Hall
City Hall
Codes, Ordinances and Policies
City Holidays
City Elections
Citizen Committees, Boards and Commissions
Capital Improvement Projects
City Attorney's Office
City Council
City Internal Auditor
City Manager's Office
City Secretary's Office
College Station Utilities
Community Services
Economic Development
Emergency Management
Fire Department
Fiscal Services
Human Resources
Information Technology
Municipal Court
Neighborhood Services
Parks & Recreation
Planning & Development Services
Police Department
Public Communications
Public Works Department
Tourism
University and Community Relations
Residents & Neighborhoods
Adopt-A-Greenway Program
Adopt-A-Street Program
Citizen Committees, Boards and Commissions
Citizen Police Academy
Citizens Fire Academy
Citizens University
Code Enforcement
Community & Neighborhood Planning
Housing Assistance
Maps
Mosquito Abatement Program
New Resident Toolkit
Solid Waste & Recycling Services
Utility Customer Service
Business & Development
Applications
Codes and Ordinances
Credit Access Business Registration
Doing Business with the City – Purchasing
Economic Development
Franchise Agreements
Maps
Pedicab, Taxi & Solicitation Permits
Rental Registration
Right-of-Way Permits
Solid Waste Services
Utility Customer Service
I Want To
Adopt-A-Greenway Application
Apply for a Burn Permit
Apply for a Special Event Permit
Apply for an Historic Marker
Bike Maps
Cleanup Report Form
Connect / Disconnect Utilities
Contact the City
Map Comments and Suggestions Form
Pay a Bill or Fee
Purchase a Cemetery Plot
Register as a Vendor
Register My Credit Access Business
Register My Rental Property
Rent A Space
Report a Recycling Issue
Report a Solid Waste Issue
Report a Street Light Issue
Report a Street or Drainage Issue
Report a Traffic Complaint
Report a Traffic Sign Issue
Report a Traffic Signal Issue
Request a Birth Certificate
Request a Death Certificate
Request a Proclamation
Request a Smoke Alarm
Request an Energy Audit
Request an Irrigation Checkup
Request Public Records
Speak at a Council Meeting
Supply Request Form
View Agendas & Minutes
View Audit Reports
View Budgets & Financial Reports
View Collection Schedule
View Electric Outage Map
View Employment Opportunities
View Maps
View Preparedness and Disaster Guides
View Project HOLD
PUC's "Regulatory Gotcha"
City of College Station
»
News
»
What's New
»
PUC's "Regulatory Gotcha"
A+
A-
Skip Sidebar Navigation
PUC's "Regulatory Gotcha"
What's New
5 things to watch at July 11 council meetings
CSU-Electric contractor to perform maintenance
New director of Planning & Development Services
Veterans Day Ceremony & Light of Freedom
CS names new Parks & Recreation director
Delayed opening For city offices
Freezing Weather Information
Winter Storm Information
Reliable Public Power Provider
Notice Of Public Hearing On Tax Increase
Notice of Intention to Issue COs
Nature Center's Star Party Set for Friday, Feb. 24
Public feedback on Middle Housing zoning
Celebrate the Juneteenth national holiday
What’s Up? Video: Episode 34
Holiday Schedule for City Offices
Whats Up? Video: Episode 1
Luther Street Rehab Project
Whats Up? Video: Episode 4
Amnesty period, pay outstanding warrants
Meeting Planners Showcase Marks 30 Years
Celebrate Women's History Month
Spread the howdy spirit by volunteering for events
No environmental issues expected after heavy rain
What’s Up? Video: Economic Development Week
Public Service Recognition Week
What’s Up, College Station? Episode 17
4 helpful tips to prepare for the hurricane season
5 things to watch at Monday's City Council meeting
Live from City Hall: Monday's city council meeting
Recognizing CSPD National Police Week
What's Up, College Station:? Episode 18
What's Up, College Station:? Episode 19
Discover why CS is the ultimate destination
5 steps to protect your home from flooding
Public works pros work diligently every day
Adamson Lagoon opens Saturday to kick off Summer
Sales tax holiday can save you money
What's Up, College Station:? Episode 20
What's Up, College Station:? Episode 21
Avoid Suspicious Emails
FY 25 Budget Open House
Rock Prairie Road East Update
10 Ways to Appreciate Game Day
Luther Street Reopens
Sept. 12 City Council Preview
Games for All at Southwood
Sept. 12 City Council Meeting
CSFD's $3.87 Million SAFER Grant
What's Up, College Station:? Ep. 35
Mabel Clare Thomas Park Redevelopment
Fall Parks & Recreation Special Events
PUC's "Regulatory Gotcha"
What's Up, College Station:? Ep. 36
How to Be a Community Game Changer
Part of Lincoln Closed for Eight Weeks
Sept. 26 City Council Preview
2024 National Night Out
Sept. 26 City Council Meeting
What's Up, College Station:? Ep. 37
City Launches I Heart CS Newsletter
Hometown Football Tailgate (Missouri Game)
Enjoy Another Game Day Weekend!
Game Day Parking Tips
What's Up, College Station:? Ep. 38
Oct. 7 City Council Preview
2024 Public Power Week
Oct. 7 City Council Meeting
2024 National Community Planning Month
Fall Volunteer Opportunities
Grant Funds Help Boost Affordable Housing
What's Up, College Station:? Ep. 39
2024 Fall Household Hazardous Waste Collection
ICYMI: Oct. 7 Code Enforcement Update
Early Voting Starts Monday
What's Up, College Station:? Ep. 40
SEC Hometown Tailgate (LSU Game)
City Seeks Bids for Macy's Redevelopment
Oct. 24 City Council Preview
Oct. 24 City Council Meeting
2024 Halloween on 19 (Oct. 28-31)
What's Up, College Station:? Ep. 41
GP Water Tower "A Massive Work of Art"
Deacon-General Parkway 2-Way Stop
What's Up, College Station:? Ep. 42
Participate in the CS Christmas Parade
Live City Council Election Results
College Station's Dog-Friendly Parks
What's Up, College Station:? Ep. 43
Last item for navigation
PUC's "regulatory gotcha" forces College Station to refund $26.3 million to CenterPoint and other major utilities
Posted on 09/19/2024
The Public Utility Commission of Texas (PUC) has ordered the City of College Station to issue an arbitrary $26.3 million refund to 34 major utility systems that pay to use the City's transmission system, despite the State Administrative Law Judge's ruling that the amount was excessive and unwarranted.
No College Station Utilities ratepayers were overcharged. The order concerns the city's inclusion of a General Fund Transfer (GFT) in its interim Transmission Cost of Service (TCOS) applications in 2007, 2008, and 2017.
The decision has no basis in any PUC rule or order and amounts to a "regulatory gotcha." Most of the refund will be paid to Oncor ($9.6 million) and CenterPoint ($6.85 million).
The order arbitrarily and capriciously punishes College Station, and it lacks an established legal basis. It also disregards the facts in the administrative record and the mitigating factors, including three PUC orders approving the City's inclusion of a GFT in TCOS rates.
While the payment from the College Station Utilities Electric Fund will not increase the city's electric rates, it will thwart any foreseeable rate reductions. The City Council is scheduled to authorize payment of the full refund on Sept. 26 to stop the punitive accrual of an additional $15 million in interest over 15 years.
Background
In 1996, the City did not include a GFT in the initial TCOS case to the benefit of ratepayers. In a draft interim filing in 2007, the GFT was again not included. Following the PUC staff's explicit and documented instructions, PUC approved its inclusion in three interim filings and for other Municipally Owned Utilities.
The City followed the PUC's rules and orders transparently and openly, detailing its actions in testimony.
All parties agree that the City could have asked for a GFT in its initial TCOS case. However, no legal or logical basis exists for not allowing the City to exclude the GFT in its interim filings simply because it failed to ask for it in the initial TCOS case.
The City is trying to follow the rules, but they keep changing. The City of College Station did not intentionally or willfully attempt to deceive the PUC or ratepayers, and complete mitigation of the refund is warranted since it penalizes an innocent actor. PUC staff and the state Administrative Law Judges support that outcome.
The only articulated legal basis for the decision is that College Station violated 16 TAC § 25.192 (the TCOS rule) since including the GFT was not first approved in a comprehensive rate case. However, the TCOS rule has no such requirement, making the PUC's decision an error of law.
The order from the City's last comprehensive TCOS filing with the PUC contains no prohibition against including a GFT in subsequent interim TCOS filings. The PUC's Final Order establishes a new "effective rate" policy for evaluating the inclusion of a GFT that did not exist in any prior PUC rule or order and is not grounded in any known legal requirement.
The City could not reasonably have known that the PUC would adopt and enforce this policy to impose a retroactive penalty. PUC precedent is to approve the inclusion of a GFT in TCOS rates as "other associated taxes" under the TCOS rule. The PUC followed this precedent by approving the City's GFT as "other associated taxes" in separate orders in 2007, 2008, and 2017.
The PUC's decision now arbitrarily disclaims its prior orders.
The City, PUC Staff, and the Office of Public Utilities Counsel executed a settlement, but the PUC arbitrarily rejected it based on no law or fact. The PUC then asked the State Office of Administrative Hearings Administrative Law Judges (SOAH ALJs) to resolve all issues, and the SOAH ALJs provided a reasonable solution: the City would refund only $900,000 because of the numerous mitigating factors, including the prior PUC orders and the PUC Staff's explicit direction.
The PUC disregarded the recommendation. Instead, it burdened College Station Utilities and its ratepayers with the full $26.3 million refund.
Timeline of Events
On Nov. 3, 2021, the City applied to update its transmission system cost of service with the PUCT due to maintenance, upgrades, and the installation of new transmission infrastructure.
After administrative proceedings and discovery before the State Office of Administrative Hearings (SOAH), PUCT staff filed the direct testimony of PUCT Staff witness Ruth Stark on June 23, 2022. Stark recommended that the City be ordered to issue a $31.5 million refund, asserting that the City's inclusion of General Fund Transfers ("GFT") in its interim TCOS applications in 2007, 2008, and 2017 were impermissible.
On July 13, 2022, the City filed rebuttal testimony, including correspondence demonstrating that it began including a GFT in its TCOS rates at the specific instruction of PUC staff dating back to 2007 and that including a GFT was subsequently and repeatedly approved by the PUCT through three official orders during open PUCT meetings.
In response to the evidence included in the City's rebuttal testimony, PUC staff filed the supplemental direct testimony of Stark on July 29, 2022. She endorsed an alternative recommendation for the City to refund only $6.6 million for its GFT inclusions.
On Aug. 16, 2022, before an evidentiary hearing, the City, PUC Staff, and the Office of Public Utility Counsel (OPUC), an intervenor, filed an Uncontested Stipulation and Settlement Agreement resolving all issues and requiring a refund of $3.9 million. Texas Industrial Energy Consumers (TIEC), an intervenor, was unopposed to the settlement and refund amount.
During its open meeting on Jan. 26, 2023, the PUC declined to accept the settlement and remanded the proceeding to SOAH after finding that the City was not authorized to include a GFT in its TCOS rates.
After a hearing on remand, the SOAH Administrative Law Judge (ALJ) issued a Proposal for Decision (PFD) on July 27, 2023. The ALJ found that the PUC had already determined the key issue of GFT recoverability in TCOS rates and recommended a partial refund.
On Sept. 14, 2023, the PUC rescinded the previous order issued on Jan. 26, 2023, and ordered the SOAH ALJs to address all issues, including the permissibility of the City's GFT inclusion.
After an additional briefing on Dec. 21, 2023, the SOAH ALJs issued a second PFD recommending that, based on the unique circumstances of the case, the PUC should order a partial $900,000 refund for the City's inclusion of a GFT in its interim TCOS filings.
During an open meeting on March 7, 2024, the PUC considered the second PFD. It disregarded the ALJ's findings, ordering the City to refund $26.3 million, plus over $15 million in carrying charges over 15 years.
After subsequent administrative proceedings, a briefing, and a PUC Final Order, on Aug. 14, 2024, the City filed – per the Final Order – a notice of its intent to prepay the outstanding refund balance on Oct. 15, 2024, saving about $15 million in carrying charges.
On Sept. 3, 2024, the City appealed the PUC's Final Order in Travis County District Court, defining the decision as arbitrary, capricious, and lacking any basis in PUC rules or orders.
As permitted under Ordering Paragraph No. 10 of the PUC's Final Order issued on July 11, 2024, the City intends to prepay the outstanding refund balance without penalty to transmission customers.
-30-
City of College Station | All Rights Reserved | Powered by
CivicLive | © 2024 Civiclive.