In 2002 Cap Rock Energy (CRE), a previously self-regulated cooperative, converted to an investor owned utility (IOU) and as such became regulated by the Public Utilities Commission of Texas (PUCT). Upon review by the PUCT in 2002, CRE’s rates were found to be below the actual cost of service. As a result of Sharyland Utilities acquisition of CRE in 2010, a restructuring of delivery rates was filed in 2013[1] to recover the deferred costs from previous years. Under the 2013 rate case the PUCT allowed Sharyland Utilities’ to adjust its delivery rates over two stages. The first stage was implemented in May 1, 2014 with the second stage following in March 1, 2015.

Small non-residential customers (secondary service less than or equal to 10 kW) saw the charge increase from $0.00217 to $0.009729 per kWh,Separately, but during the same period, the PUCT allowed Sharyland Utilities to adjust the Transmission Cost Recovery Factor (TCRF) Rider to correctly reflect transmission costs CRE had paid to other transmission owners in ERCOT. The adjustment that took effect in March 2015[2] resulted in more than a 500% increase in TCRF rates, accounting for over a decade of time since rates had been adjusted. According to state law, Sharyland Utilities is allowed to request an update to its TCRF Rider twice a year but must prove all costs to the PUCT in periodic filings. The utility demonstrated a substantial increase in wholesale transmission costs in the last quarter of 2014 and first quarter of 2015. As such, the TCRF jumped significantly after March 1, 2015. For example:

–Small non-residential customers (secondary service less than or equal to 10 kW) saw the charge increase from $0.00217 to $0.009729 per kWh,
–Medium customers (secondary service greater than 10 kW) saw the charge increase from $0.68380 to $4.216819 per kW,
–Large customers (primary service) saw the charge increase from $0.63260 to $4.036839 per kW.

Since then, the charge increased only slightly in September 2015[3], and was approved for a minor increase in March 2016[4]. Sharyland Utilities next rate case is scheduled to be filed by April 2016.