81R4751 JJT-D
By: Ellis S.B. No. 1972
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.