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BTU proposes housekeeping ordinance, pass-through charge increases; council asked questions
Summary
BTU staff presented a housekeeping rewrite of the electric rate ordinance (no base-rate changes) and recommended pass-through adjustments: a 5% increase to the power cost recovery charge and an 11% increase to the transmission cost recovery component effective June 1, producing an average 3.5% increase (about $3.94/month for a 1,000 kWh residential customer); staff also proposed ending seasonal residential rates Nov. 1, 2026 and changing solar net-metering credits to the power cost recovery rate (3.76¢/kWh).
Doug Lyles presented proposed housekeeping changes to the BTU electric rate ordinance and summarized the BTU Board's recommendations on pass-through components. Lyles said the rewrite is intended to clarify terms and organization, not to change base rates: "At the top, there are no base rate changes in this ordinance," he said. The rewrite consolidates definitions, adds a table of contents and standardizes terminology (availability charge, consumption charge, power cost recovery charge, transmission cost recovery charge).
Lyles told council the board has approved two pass-through changes: a 5% increase to the power cost recovery charge (PCRC) effective June 1 and an 11% increase to the transmission cost recovery charge (TCRC). He summarized the combined impact for an average city residential customer (about 1,000 kWh) as roughly a 3.5% increase, which he converted to a $3.94 monthly change: "So all in, the total average increase for a city system residential customer is gonna be about 3.5% ... it's gonna be $3.94 increase per month." Lyles said the PCRC and TCRC moves are intended to smooth bill volatility driven by market and transmission-cost changes in ERCOT and that staff is recommending the housekeeping ordinance for council approval and the BTU Board has recommended approval.
On solar policy, Lyles proposed changing net-metering retail credit from full retail (about 11.05¢/kWh) to a credit based on the power cost recovery charge (3.76¢/kWh) to avoid cross-subsidization of non-solar customers: "We're proposing to eliminate cost subsidization ... the credit back will be at the power cost recovery charge component of your rate, which will be 3.76¢ per kilowatt hour." Council members asked about customer communications; Lyles said staff has prepared outreach options and hard-copy bill comparisons for council and can pursue additional public communication if council directs it.
Staff requested council consider the ordinance at the regular meeting; the presentation closed with a timeline that would put PCRC and TCRC changes into effect June 1 if approved and end seasonal rates on Nov. 1, 2026.
