Client is a manufacturing plant in Texas on Oncor delivery. They opted out of the renewable energy surcharge when their REP gave them the option. But the Oncor delivery bill still shows a "Renewable Energy Credit" charge of $0.0015/kWh. The client thought opting out with the REP would remove all renewable charges. Should the delivery side charge still apply?
Renewable energy surcharge applied to opt-out customer
In Texas, renewable energy charges can appear on both the supply side (REP) and the delivery side (TDU). Opting out with the REP only removes the supply-side renewable charge. The Oncor delivery tariff may have a separate renewable compliance rider that applies regardless of the supply-side election. Check the Oncor tariff to see if the delivery-side renewable charge has an opt-out provision. If it doesn't, the charge is legitimate even though the client opted out on the supply side.
Karen is right that supply and delivery charges are separate. However, verify that the Oncor renewable charge is being applied at the correct rate for the client's customer class. Also check the PUC of Texas docket to confirm the charge is currently approved. Riders can be approved for a specific period and then expire or be modified. If the rider authorization has expired and Oncor is still collecting it, that's an error regardless of opt-out status.
Checked Oncor tariff — the delivery-side renewable charge is legitimate and has no opt-out. Rate is correct for the customer class. Client was confused about the supply vs delivery distinction. No error here but at least the client understands their bill better now. Not every audit finding is an error — sometimes the value is education.