82R10194 RWG-D
By: Bonnen H.B. No. 2798
A BILL TO BE ENTITLED
AN ACT
relating to discounted utility rates for school districts and
open-enrollment charter schools; providing an administrative
penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.351, Utilities Code, is reenacted and
amended to read as follows:
Sec. 36.351. DISCOUNTED RATES FOR CERTAIN INSTITUTIONS OF
HIGHER EDUCATION AND SCHOOL DISTRICTS. (a) Notwithstanding any
other provision of this title, as provided by Subsection (b), each
electric utility in an area in which customer choice is not
available or in which the commission has delayed the implementation
of customer choice and each electric cooperative, transmission and
distribution utility, and municipally owned utility shall discount
charges for electric service provided to a facility of a four-year
state university, upper-level institution, Texas State Technical
College, [or] college, or school district.
(b) The discount is a 20-percent reduction of the utility's
base rates that would otherwise be paid under the applicable
tariffed rate. As provided by commission rules, the discount must
be provided to an educational entity listed under Subsection (a) or
to a retail electric provider that provides service to an
educational entity in an area where customer choice is available.
(b-1) A retail electric provider that receives a discount
under Subsection (b) shall apply a discount received under
Subsection (b) to an educational entity described by Subsection (a)
as a credit in an amount equal to the amount of the discount. The
commission may suspend, revoke, or amend the retail electric
provider's certificate of a retail electric provider that does not
apply the discount to an educational entity described by Subsection
(a). The commission shall impose an administrative penalty on a
retail electric provider that does not apply the discount to an
educational entity listed under Subsection (a).
(c) An electric or municipally owned utility is exempt from
this section if the 20-percent discount results in a reduction
equal to more than one percent of the utility's total annual
revenues.
(d) A municipally owned utility is exempt from this section
if the municipally owned utility, on September 1, 1995, discounted
base commercial rates for electric service provided to all
four-year state universities or colleges in its service area by 20
percent or more.
(e) This section does not apply to a rate charged to an
institution of higher education by a municipally owned utility that
provides a discounted rate to the state for electric services below
rates in effect on January 1, 1995, if the discounted rate provides
a greater financial discount to the state than is provided to the
institution of higher education through the discount provided by
this section.
(f) An investor-owned electric utility may not recover from
residential customers or any other customer class the assigned and
allocated costs of serving an entity [a state university or
college] that receives a discount under this section.
(g) Each electric utility shall file tariffs with the
commission reflecting the discount required under this section.
The initial tariff filing is not a rate change for purposes of
Subchapter C.
SECTION 2. The change in law made by this Act applies only
to a rate charged on or after the effective date of this Act. A rate
charged before the effective date of this Act is governed by the law
in effect when the rate was charged, and that law is continued in
effect for that purpose.
SECTION 3. This Act takes effect September 1, 2011.