Relating to a capacity cost recovery rider for certain electric utilities.

Contracts

• Commercial Leases (East Texas): Landlords with Gross Leases in the SERC region must renegotiate or face eroding margins; you cannot pass this new variable cost to tenants under current flat-rate structures. Net Leases must be audited to ensure "regulatory riders" and "capacity adjustments" are defined as recoverable Operating Expenses.
• Energy Supply Agreements: Review "Change in Law" and "Pass-Through" clauses. Unless your contract explicitly fixes regulatory ancillary charges, this rider will bypass your hedged energy rates.

Hiring/Training

• Accounts Payable: Train staff to recognize the "Capacity Cost Recovery Rider" (CCRR) as a valid line item. Ensure automated invoice auditing software does not flag this new, variable charge as a billing error.
• Facilities Management: No new certifications required, but facility managers must coordinate with Finance to adjust utility accruals every May/June.

Reporting & Record-Keeping

• Bill Retention: Retain all utility invoices for a rolling three-year period. The law mandates a reconciliation ("true-up") of costs vs. revenues in the next base rate case. If the utility over-collected, you are owed a refund/credit, which you cannot verify without historical usage data.
• Intervention Filings: If challenging a rate, legal teams must submit responses within 15 days of the utility's filing.

Fees & Costs

• Variable Surcharge: Expect a new line item on electric bills annually, effective June 1.
• Cost Magnitude: High. This rider recovers costs associated with capacity auctions and settlements. These are significant operational costs previously recovered only through infrequent base rate cases; they will now fluctuate annually.