81R5916 JJT-D
By: Farabee H.B. No. 1156
A BILL TO BE ENTITLED
AN ACT
relating to providing a discounted rate for electricity provided to
school districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 36.351, Utilities Code,
is amended to read as follows:
Sec. 36.351. DISCOUNTED RATES FOR PUBLIC SCHOOL DISTRICTS
AND CERTAIN INSTITUTIONS OF HIGHER EDUCATION.
SECTION 2. Sections 36.351(a), (d), (e), and (f) are
amended to read as follows:
(a) Notwithstanding any other provision of this title, each
electric utility and municipally owned utility shall discount
charges for electric service provided to a public school district
or a facility of a four-year state university, upper-level
institution, Texas State Technical College, or college.
(d) A municipally owned utility is exempt from the
requirement of this section to discount rates to a facility of a
four-year state university, upper-level institution, Texas State
Technical College, or college if the municipally owned utility, on
September 1, 1995, discounted base commercial rates for electric
service provided to all four-year state universities or colleges in
its service area by 20 percent or more. A municipally owned utility
is exempt from the requirement of this section to discount rates to
a public school district if the municipally owned utility, on
September 1, 2009, discounted base commercial rates for electric
service provided to all school districts in its service area by 20
percent or more.
(e) This section does not apply to a rate charged to an
institution of higher education by a municipally owned utility that
provides a discounted rate to the state for electric services below
rates in effect on January 1, 1995, or to a rate charged to a school
district by a municipally owned utility that provides a discount to
the school district for electric service below rates in effect on
September 1, 2009, if the discounted rate provides a greater
financial discount to the state or to the school district, as
applicable, than is provided to the institution of higher education
or school district through the discount provided by this section.
(f) An investor-owned electric utility may not recover from
residential customers or any other customer class the assigned and
allocated costs of serving a state university or college or a school
district that receives a discount under this section.
SECTION 3. This Act takes effect September 1, 2009.