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File #: 20-5096   
Type: Misc - Financial Services
In control: City Council A Session
On agenda: 9/17/2020
Posting Language: Ordinance approving updates to the CPS Energy Wholesale Transmission Customer Primary Distribution Voltage Service Rider No. E14 to better reflect the cost of providing the service and renaming it the Wholesale Distribution Service (WDS) Rider E14. [Ben Gorzell, Chief Financial Officer; Troy Elliott, Deputy Chief Financial Officer]
Attachments: 1. Rider E14 Wholesale Distribution Service - Proposed, 2. Rider E14 Wholesale Distribution Service Revision Redlined, 3. Draft Ordinance.pdf, 4. CPS Presentation, 5. Ordinance 2020-09-17-0660
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DEPARTMENT: Finance


DEPARTMENT HEAD: Troy Elliott, Deputy Chief Financial Officer


COUNCIL DISTRICTS IMPACTED: Citywide


SUBJECT:

Approval of an updated CPS Energy Wholesale Transmission Customer Primary Distribution Voltage Service Rider No. E14 and renaming of the rate schedule to Wholesale Distribution Service (WDS) Rider No. E14.


SUMMARY:

The Public Utility Commission of Texas (PUCT) requires Transmission Service Providers like CPS Energy to offer wholesale distribution access to its transmission system, if requested by an electric power generator. This item updates the existing Wholesale Transmission Customer Primary Distribution Voltage Service Rider No. E14 ("Rider") to better reflect costs associated with usage of CPS Energy's distribution system by customers. The rate schedule is also renamed as the Wholesale Distribution Service, WDS Rider No. E14 ("WDS Rider") for the same reasons.


BACKGROUND INFORMATION:

Among other functions, the Electric Reliability Council of Texas (ERCOT) manages the State-wide electrical transmission grid and operates the wholesale power market. Transmission Service Providers like CPS Energy are required to provide generators access to the transmission system. This allows electric power generators to sell power into the ERCOT wholesale market.

The State-wide transmission grid is comprised of the high voltage power lines (60 kV (kilovolts) or above) that move bulk electricity across the State from generating units to utilities, who lower the voltage and distribute the power to customers through their distribution power lines (below 60 kV). The State-wide vs. utility systems are called the transmission system and distribution systems, respectively.

Any electric power generator can participate in the ERCOT wholesale market, provided it meets the ERCOT and PUCT registration requirements and adheres to applicable rules. Most electric power generators connect to the transmission system directly; however, PUCT...

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