| 1 | 1 | | 81R4751 JJT-D |
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| 2 | 2 | | By: Ellis S.B. No. 1972 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to studying the feasibility of mechanisms to decouple |
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| 8 | 8 | | certain electric utility revenues from the volume of sales of |
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| 9 | 9 | | electricity. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. The Public Utility Commission of Texas shall |
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| 12 | 12 | | study the feasibility of mechanisms to decouple electric utility |
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| 13 | 13 | | revenues and earnings from the amount of electricity consumed by |
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| 14 | 14 | | utility customers so that investor-owned electric utilities, |
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| 15 | 15 | | electric transmission and distribution utilities, municipally |
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| 16 | 16 | | owned electric utilities, and electric cooperatives may prevent |
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| 17 | 17 | | fluctuations in retail electric energy consumption from affecting |
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| 18 | 18 | | the ability of those types of utilities to recover fixed costs of |
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| 19 | 19 | | service that do not ordinarily vary directly with changes in |
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| 20 | 20 | | electric energy consumption or sales volume. |
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| 21 | 21 | | SECTION 2. (a) The study described by Section 1 of this Act |
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| 22 | 22 | | must address disincentives to the promotion of efficient use of |
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| 23 | 23 | | electricity by better practices and better technology, including |
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| 24 | 24 | | concerns regarding: |
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| 25 | 25 | | (1) a utility's lost revenues from electricity sales |
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| 26 | 26 | | that may result from energy efficiency improvements or energy |
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| 27 | 27 | | saving practices that reduce electricity consumption; and |
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| 28 | 28 | | (2) a utility's recovery of the utility's costs for |
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| 29 | 29 | | programs promoting electric energy efficiency. |
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| 30 | 30 | | (b) In conducting the study, the Public Utility Commission |
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| 31 | 31 | | of Texas may consider and evaluate mechanisms proposed or applied |
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| 32 | 32 | | in other states for: |
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| 33 | 33 | | (1) allowing rates of return on energy efficiency |
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| 34 | 34 | | investments in a manner like those for other capital investments; |
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| 35 | 35 | | (2) providing an increased rate of return on overall |
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| 36 | 36 | | investments or on energy efficiency investments; |
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| 37 | 37 | | (3) providing financial incentives for meeting energy |
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| 38 | 38 | | efficiency targets; and |
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| 39 | 39 | | (4) recovering energy efficiency program costs. |
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| 40 | 40 | | SECTION 3. (a) The Public Utility Commission of Texas shall |
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| 41 | 41 | | report the conclusions of the study described by Section 1 of this |
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| 42 | 42 | | Act to the lieutenant governor, the speaker of the house of |
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| 43 | 43 | | representatives, and each committee of the 82nd Legislature that |
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| 44 | 44 | | has jurisdiction over electric utilities. |
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| 45 | 45 | | (b) The report must include recommendations tailored by |
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| 46 | 46 | | category to investor-owned electric utilities, electric |
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| 47 | 47 | | transmission and distribution utilities, municipally owned |
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| 48 | 48 | | electric utilities, and electric cooperatives. |
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| 49 | 49 | | (c) The report and recommendations must be delivered not |
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| 50 | 50 | | later than January 31, 2011, and must contain specific |
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| 51 | 51 | | recommendations regarding transmission and distribution utility |
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| 52 | 52 | | revenues and earnings in relation to electric energy efficiency, |
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| 53 | 53 | | including legislative proposals. |
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| 54 | 54 | | SECTION 4. This Act takes effect immediately if it receives |
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| 55 | 55 | | a vote of two-thirds of all the members elected to each house, as |
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| 56 | 56 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 57 | 57 | | Act does not receive the vote necessary for immediate effect, this |
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| 58 | 58 | | Act takes effect September 1, 2009. |
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