TXU Asks for Permission To Break Fixed Rate Contracts With Consumers
Texas electricity officials are considering raising the current cap on wholesale electricity rates that electricity providers pay. Some providers including TXU energy are setting the stage with the Texas Public Utilities Commission to be able to break fixed rate contracts with consumers in order to be able to pass along their additional costs to consumers.
Excerpt from TXU letter to the Texas PUC:
“TXU Energy believes that, as a matter of policy, the Commission could reasonably interpret P.U.C. SUBST. R. 25.475 to allow REPs to increase the price of existing fixed-rate contracts for residential or small commercial customers to the extent that the REP’s actual costs increase due to an increase in the cost of wholesale power caused by
the change in the SWOC.”
See full filing here: http://interchange.puc.state.tx.us/WebApp/Interchange/Documents/37897_149_727044.PDF