81R4751 JJT-D By: Anchia H.B. No. 2079 A BILL TO BE ENTITLED AN ACT relating to studying the feasibility of mechanisms to decouple certain electric utility revenues from the volume of sales of electricity. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. The Public Utility Commission of Texas shall study the feasibility of mechanisms to decouple electric utility revenues and earnings from the amount of electricity consumed by utility customers so that investor-owned electric utilities, electric transmission and distribution utilities, municipally owned electric utilities, and electric cooperatives may prevent fluctuations in retail electric energy consumption from affecting the ability of those types of utilities to recover fixed costs of service that do not ordinarily vary directly with changes in electric energy consumption or sales volume. SECTION 2. (a) The study described by Section 1 of this Act must address disincentives to the promotion of efficient use of electricity by better practices and better technology, including concerns regarding: (1) a utility's lost revenues from electricity sales that may result from energy efficiency improvements or energy saving practices that reduce electricity consumption; and (2) a utility's recovery of the utility's costs for programs promoting electric energy efficiency. (b) In conducting the study, the Public Utility Commission of Texas may consider and evaluate mechanisms proposed or applied in other states for: (1) allowing rates of return on energy efficiency investments in a manner like those for other capital investments; (2) providing an increased rate of return on overall investments or on energy efficiency investments; (3) providing financial incentives for meeting energy efficiency targets; and (4) recovering energy efficiency program costs. SECTION 3. (a) The Public Utility Commission of Texas shall report the conclusions of the study described by Section 1 of this Act to the lieutenant governor, the speaker of the house of representatives, and each committee of the 82nd Legislature that has jurisdiction over electric utilities. (b) The report must include recommendations tailored by category to investor-owned electric utilities, electric transmission and distribution utilities, municipally owned electric utilities, and electric cooperatives. (c) The report and recommendations must be delivered not later than January 31, 2011, and must contain specific recommendations regarding transmission and distribution utility revenues and earnings in relation to electric energy efficiency, including legislative proposals. SECTION 4. 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.