81R4178 JJT-D By: Anderson H.B. No. 1374 A BILL TO BE ENTITLED AN ACT relating to the application of certain demand charges by transmission and distribution utilities to certain schools and nonprofit athletic or sports associations. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter A, Chapter 35, Utilities Code, is amended by adding Section 35.010 to read as follows: Sec. 35.010. TIERED RATCHET PROVISIONS FOR CERTAIN UTILITY CUSTOMERS. (a) This section applies only to the provision of transmission and distribution services to a public or private school or a nonprofit athletic or sports association. (b) If a transmission and distribution utility includes a ratchet provision in a tariff relating to distribution service for a customer to which this section applies, the utility shall apply the ratchet provision in two tiers so that: (1) during a billing period when the customer's consumption of electrical power is high, the ratchet provision provides for the customer to be charged in a manner comparable to that for other customers subject to a ratchet provision to accommodate high demand; and (2) during a billing period when the customer's consumption of electrical power is low, the ratchet provision provides for the customer to be charged in a manner comparable to that for other customers in the same service area who consume a similar amount of electrical power. SECTION 2. The Public Utility Commission of Texas shall adopt rules as necessary to implement Section 35.010, Utilities Code, as added by this Act, as soon as practicable. A transmission and distribution utility shall modify ratchet provisions contained in its tariffs applicable to each school or association in accordance with Section 35.010, Utilities Code, as added by this Act, not later than January 1, 2010. SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.