Just got the June rate update from Oncor here in Texas and their transmission cost recovery factor went from $0.004187 per kWh to $0.006074 per kWh. That's a 45% increase in one month. I've got industrial clients screaming about $3,000-5,000 monthly increases. The PUCT filing mentions ERCOT transmission upgrades but gives no details. Has anyone dug into what specific projects are driving this massive increase?
Oncor's transmission cost recovery factor jumped 45% - anyone know why?
Howard, I think this is related to all the new transmission lines ERCOT approved after the 2021 winter storm. They're building massive redundancy into the grid to prevent future outages. The projects include new 345kV lines from East Texas to the load centers around Dallas and Houston. Those lines cost $2-3 million per mile and ratepayers are footing the bill through transmission riders like this one.
Bernard's right about the post-freeze transmission buildout. Idaho Power went through something similar after our grid reliability issues in 2019. The transmission upgrades are necessary for grid stability, but the cost recovery mechanisms are brutal for large users. Howard, you might want to look into whether any of your industrial clients qualify for interruptible service rates that could offset some of these transmission charges.