(a) A cost recovery factor established for the recovery of purchased power costs may include:(1) the cost the electric utility incurs in purchasing capacity and energy;(2) a mark-up added to the cost or another mechanism the commission determines will reasonably compensate the utility for any financial risk associated with purchased power obligations; and(3) the value added by the utility in making the purchased power available to customers.(b) The mark-ups and cost recovery factors, if allowed, may be those necessary to encourage the electric utility to include economical purchased power as part of the utility's energy and capacity resource supply plan. Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.
Texas Legal Code