By: Oliveira H.B. No. 4610
A BILL TO BE ENTITLED
AN ACT
relating to cost recovery by a transmission and distribution
utility of distribution system costs.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The Legislature finds that because of the
importance of a reliable electric distribution system to this
state's economy and the welfare of its citizens, it is in the public
interest to promote investment in distribution systems and the
maintenance of such systems by providing for a more expeditious
regulatory process for the recovery of such costs.
SECTION 2. Section 36.204, Utilities Code, is amended by
adding Subsection (b) and renumbering the existing section to read
as follows:
Sec. 36.204. COST RECOVERY AND INCENTIVES. (a) In
establishing rates for an electric utility, the commission may:
(1) allow timely recovery of the reasonable costs of
conservation, load management, and purchased power,
notwithstanding Section 36.201; and
(2) authorize additional incentives for conservation,
load management, purchased power, and renewable resources.
(b) Notwithstanding Section 36.201 and as an alternative to
a rate case under Subchapter C in which all costs and revenues are
considered, a regulatory authority shall allow a transmission and
distribution utility, at the transmission and distribution
utility's option, to adjust its rates to ensure timely recovery of
distribution investment and operations and maintenance expense
related to distribution. The commission shall adopt rules to
implement this Subsection to provide a more expeditious regulatory
process for the recovery of such costs.
SECTION 3. Effective Date. 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.