Denton Public Utilities Board recommends modest changes to electric-rate schedule

The Denton Public Utilities Board on March 9 voted unanimously to recommend an ordinance establishing a revised schedule of electric rates that maintains the native-load energy cost adjustment, slightly increases the large-load ECA and reduces the transmission cost recovery factor.

Melissa Cuevas of DME presented the quarterly review of the ECA and the transmission cost recovery factor and recommended keeping the native-load ECA unchanged, increasing the large-load ECA (staff quoted the proposed large-load level as 0.0606 per kilowatt-hour) and decreasing the TCRF (staff quoted the proposed level as 0.0156). Cuevas said the native-load ECA account carries a buffer of about $20,000,000 and staff’s forecast showed an estimated balance of roughly $16,000,000 by December under the plan.

Board members asked staff to clarify past changes and whether commercial customers would be reclassified retroactively under a 12‑month lock-in. Staff said the ordinance language was revised to reflect recent direction from the board and city council to review accounts retroactively after a 12‑month period and, if necessary, move accounts between general-service small and large classes.

Chair argued the quarterly reviews provide useful oversight and education: "I think I feel like we've gotten pretty good education on, you know, the targets for the ECA accounts," the Chair said. Several members expressed that the recommended adjustments represented modest, predictable changes and would not be a shock to customers.

After discussion the board approved the staff recommendation and the revised ordinance language by voice vote with no dissent.

What happens next: staff will prepare the ordinance language and any supporting materials for council consideration, and the board and staff will continue quarterly reviews of the ECA and TCRF balances.