Archive for December 2011

PUCT Opens Rulemaking to Review POLR Rate Prepay Rate Cap

The Commission opened a rulemaking yesterday, likely to revisit the POLR rate/prepay price cap issue.  It has been assigned docket number 39969.  On a related note, Rep. Jim Pitts also filed a letter in docket 38829 calling on the PUCT to review this POLR rate mechanism for use with prepay rates.  His letter can be found at:  http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/38229_152_712660.PDF

The current POLR rate is tied to MCPE which doesn’t exist anymore with the move to the Nodal market.  Further, as it presently stands, the PUCT staff has pushed prepay REPs to demonstrate compliance by pricing at or below the minimum POLR rate, as opposed to showing prices that might be above the minimum but below the maximum.

Finally, the POLR rate as presently constructed is a backwards looking rate, while prepay is clearly pricing on a going forward basis.  Hopefully, this rulemaking will clarify how those two realities can reconcile.