| 1 | 1 | | By: Oliveira H.B. No. 4610 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to cost recovery by a transmission and distribution |
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| 7 | 7 | | utility of distribution system costs. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. The Legislature finds that because of the |
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| 10 | 10 | | importance of a reliable electric distribution system to this |
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| 11 | 11 | | state's economy and the welfare of its citizens, it is in the public |
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| 12 | 12 | | interest to promote investment in distribution systems and the |
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| 13 | 13 | | maintenance of such systems by providing for a more expeditious |
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| 14 | 14 | | regulatory process for the recovery of such costs. |
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| 15 | 15 | | SECTION 2. Section 36.204, Utilities Code, is amended by |
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| 16 | 16 | | adding Subsection (b) and renumbering the existing section to read |
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| 17 | 17 | | as follows: |
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| 18 | 18 | | Sec. 36.204. COST RECOVERY AND INCENTIVES. (a) In |
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| 19 | 19 | | establishing rates for an electric utility, the commission may: |
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| 20 | 20 | | (1) allow timely recovery of the reasonable costs of |
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| 21 | 21 | | conservation, load management, and purchased power, |
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| 22 | 22 | | notwithstanding Section 36.201; and |
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| 23 | 23 | | (2) authorize additional incentives for conservation, |
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| 24 | 24 | | load management, purchased power, and renewable resources. |
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| 25 | 25 | | (b) Notwithstanding Section 36.201 and as an alternative to |
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| 26 | 26 | | a rate case under Subchapter C in which all costs and revenues are |
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| 27 | 27 | | considered, a regulatory authority shall allow a transmission and |
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| 28 | 28 | | distribution utility, at the transmission and distribution |
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| 29 | 29 | | utility's option, to adjust its rates to ensure timely recovery of |
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| 30 | 30 | | distribution investment and operations and maintenance expense |
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| 31 | 31 | | related to distribution. The commission shall adopt rules to |
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| 32 | 32 | | implement this Subsection to provide a more expeditious regulatory |
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| 33 | 33 | | process for the recovery of such costs. |
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| 34 | 34 | | SECTION 3. Effective Date. This act takes effect |
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| 35 | 35 | | immediately if it receives a vote of two-thirds of all the members |
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| 36 | 36 | | elected to each house, as provided by Section 39, Article III, Texas |
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| 37 | 37 | | Constitution. If this Act does not receive the vote necessary for |
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| 38 | 38 | | immediate effect, this Act takes effect September 1, 2009. |
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