Entergy Texas' Distribution Cost Recovery Factor Application: Key Findings and Statistics

Strategic Insights -

The Public Utility Commission of Texas (PUCT) has issued an order addressing the application of Entergy Texas, Inc. (Entergy Texas) for a distribution cost recovery factor (DCRF) and tariff. The Commission approves Entergy Texas' DCRF application to the extent provided in this Order, which will increase the company's Texas distribution revenue requirement by approximately $77.8 million. This application marks Entergy Texas' third DCRF proceeding since its last base-rate proceeding, Docket No. 53719. The order includes findings of fact, approved rates, and a comprehensive base-rate proceeding.

Key Takeaways:

  • Entergy Texas' proposed DCRF will affect all of its retail electric customers, with an incremental increase of approximately $29.3 million to its DCRF revenue requirement approved in Docket No. 57121.
  • The company had invested $950.3 million in gross distribution-related capital booked in Federal Energy Regulatory Commission (FERC) accounts 303, 352, 353, 360 through 374, 391, and 397 from January 1, 2022 through December 31, 2024.
  • Entergy Texas used the DCRF baseline values and 6.61% rate of return approved by the Commission in Docket No. 53719 in its application.
  • The Commission staff filed a Recommendation on Final Disposition on May 12, 2025, which included Memoranda from James Euton, Ruth Stark, and David Holt.
  • The order includes the direct testimonies of Chris E. Barrilleaux, Jace R. Carlock, and Kristin Sasser, as well as an affidavit by Scott Barrios, manager of regulatory affairs for Entergy Texas.
  • Entergy Texas provided notice of the application to all parties of record in Entergy Texas's last comprehensive base-rate proceeding, Docket No. 53719, and to all parties of record in Entergy Texas' s last DCRF proceeding, Docket No. 57121.

Statistics:

  • $77,791,789: Entergy Texas' proposed DCRF revenue requirement.
  • $29,300,000: Incremental increase to Entergy Texas' DCRF revenue requirement approved in Docket No. 57121.
  • $950.3 million: Gross distribution-related capital booked by Entergy Texas in FERC accounts 303, 352, 353, 360 through 374, 391, and 397 from January 1, 2022 through December 31, 2024.
  • 6.61%: Rate of return approved by the Commission in Docket No. 53719.
  • 30 days: Timeframe for parties to file a motion to find the application materially deficient.
  • May 5, 2025: Date of Order No. 3 filed by the ALJ, finding the application administratively complete.
  • May 12, 2025: Date of Commission Staff's Recommendation on Final Disposition.

Sources:

  • Public Utility Regulatory Act, Tex. Util. Code §§ 11.001-66.016 (PURA).
  • Application of Entergy Texas, Inc. for Authority to Change Rates, Docket No. 53719, Order (Aug. 24, 2023).
  • Application of Entergy Texas, Inc. for a Distribution Cost Recovery Factor, Docket No. 56718, Order (Sep. 12, 2024).
  • Application of Entergy Texas, Inc. to Amend its Distribution Cost Recovery Factor, Docket No. 57121, Order (Dec. 19, 2024).
  • 16 Texas Administrative Code (TAC) § 25.243.