Monday, September 15, 2008

Oncor pitches no-hitter against Little Leaguers

Watching the Olympics made me proud of the young athletes and the great sacrifices that they made along with their families, coaches, and supporters. However, those who make such accomplishments possible are being systematically overcharged for their electric delivery charges in Texas.

Seasonal-use facilities like Little Leagues and schools are paying thousands of dollars for electric service, each and every month, even when they use no electricity at all. Deregulation has given informed customers a great opportunity to control rising energy costs, but state-regulated delivery charges are stacked against many customers, and they need fixed.

Current guidelines have a “ratchet demand” rule that affects commercial customers with “demand” meters. Residential electric meters have what looks like an odometer that measures kilowatt hours. Most commercial meters also have the equivalent of a speedometer, which measures the volume of electricity flowing during any 15-minute period. If a customer hits an unusually high peak just once, they pay a minimum of 80% of that peak charge, every month, for the next 11 months.

Those most disproportionately affected are often those with limited resources, yet these very same organizations make some of the greatest contributions to our communities, such as schools, athletic fields, houses of worship, special event facilities, fraternal lodges, and small businesses. Even more inequitable, most of these non-profit customers use their energy on evenings and weekends, which is “off-peak”, meaning they place no additional strain on our electric grid.

Regulated electric delivery companies like Oncor (formerly TXU) must provide the same equipment and services as for their more profitable customers, but new laws make customers pay a greater cost for new construction and equipment to offset most of that cost.

Oncor has done a poor job of educating customers about this 80% ratchet demand provision, and has profited from the confusion. Many organizations also have annual changes in volunteer leaders, with fresh confusion, frustration and disbelief each year.

One local Little League has chosen to play without lights, calling games on darkness, and creating potential safety issues for children and parents. Their players would have to sell the equivalent of 2.5 tons of cookie dough to cover the cost of electric delivery during months with no electricity usage. That time could be better spent doing homework or playing ball.

I approached State Rep. Jim Dunnam about correcting this situation before the last legislative session, choosing a stealth approach so as not to alert the powerful lobby representing energy delivery companies. Rep. Dunnam was successful in getting proper language attached to an energy bill to remove ratchet demands for non-profit athletic facilities. Although it passed the House, the bill was subsequently killed in a Senate conference committee. Virtually none understood it. Rep. Doc Anderson has also expressed enthusiastic support for carrying such legislation.

Not content to wait two more years for the next legislature, we began circulating a petition among school superintendents and little leagues, and brought this issue before the Texas Energy Professionals Association (TEPA). We have approached the incoming Chairman of the Public Utility Commission and were successful in getting a docket opened to discuss the issue among interested parties. We have now published our own comments, assisted in writing TEPA’s comments, and will continue to aggressively pursue the issue.

Those interested in helping save millions of dollars for Texas taxpayers, schools, athletic associations, houses of worship, performance venues, and other non-profits, can acquaint themselves with the issue at http://interchange.puc.state.tx.us/, Docket 35855 or contact our office at 254-751-0364.

TJ Ermoian, Jr. is a PUC-licensed Electricity Aggregator and board member of the Texas Electricity Professionals Assn.

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