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Denton utility board creates separate large‑load energy cost schedule, raises ECA buffer
Summary
The Public Utility Board voted unanimously to keep the existing energy cost adjustment (ECA) rate, increase the ECA buffer from $10 million to $20 million and create a new "large load" ECA schedule for customers drawing more than 20 megawatts, effective July 1.
The Public Utility Board of the City of Denton voted unanimously June 9 to adopt an ordinance maintaining the current energy cost adjustment (ECA) rate at 0.0462 per kilowatt-hour, raise the ECA buffer from $10,000,000 to $20,000,000 and create a new ECA "large load" schedule for customers that draw more than 20 megawatts.
The change, presented by Visible Pentagon, AD of finance, keeps the transmission cost recovery factor (TCRF) unchanged and establishes the $20,000,000 buffer (about 60 days of average purchased power under staff analysis) while using a 24‑month lookback for forecasting. The new large‑load schedule would carry a proposed ECA rate of 0.0515 per kilowatt and would be settled in a separate account so the native/residential load and large prospective customers move independently.
Visible Pentagon, AD of finance, said the recommendation is to maintain the 0.0462 rate, increase the buffer to $20,000,000 and create the large‑load schedule while continuing to review the TCRF. A board member who identified herself as Devin praised the separation, saying the structure ‘‘treats them fairly’’ while helping avoid cross‑subsidy risks for long‑standing residential customers.
Board members requested and received clarification about the new schedule's mechanics: the native‑load ECA can carry a negative balance, but the new large‑load account is structured so its balance will not go below zero and will therefore not shift costs onto native customers. Board discussion also touched on transmission constraints in the region. Staff said prospective large customers such as data centers could require regional transmission projects that are expected to require two to three years for approval and construction; the projects could be owned by ERCOT or locally by Denton Municipal Electric (DME), and any DME ownership would come back through the PAB and city council as part of the budget/debt process.
A motion to adopt the ordinance was made and seconded; the board voted unanimously. The ordinance takes effect July 1 per staff recommendation.
Votes: The board recorded a unanimous vote in favor (6–0).
