82R3436 JJT-F
By: Anderson of McLennan H.B. No. 538
A BILL TO BE ENTITLED
AN ACT
relating to the application of certain demand charges by
transmission and distribution utilities to certain schools and
nonprofit athletic or sports associations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 35, Utilities Code, is
amended by adding Section 35.009 to read as follows:
Sec. 35.009. TIERED RATCHET PROVISIONS FOR CERTAIN UTILITY
CUSTOMERS. (a) This section applies only to the provision of
transmission and distribution services to a:
(1) public or private school;
(2) fairground owned or operated by a nonprofit
organization that is exempt from federal income taxation under
Section 501 or 503, Internal Revenue Code of 1986; or
(3) nonprofit athletic or sports association.
(b) If a transmission and distribution utility includes a
ratchet provision in a tariff relating to distribution service for
a customer to which this section applies, the utility shall apply
the ratchet provision in two tiers so that:
(1) during a billing period when the customer's
consumption of electrical power is high, the ratchet provision
provides for the customer to be charged in a manner comparable to
that for other customers subject to a ratchet provision to
accommodate high demand; and
(2) during a billing period when the customer's
consumption of electrical power is low, the ratchet provision
provides for the customer to be charged in a manner comparable to
that for other customers in the same service area who consume a
similar amount of electrical power.
SECTION 2. The Public Utility Commission of Texas shall
adopt rules as necessary to implement Section 35.009, Utilities
Code, as added by this Act, as soon as practicable. A transmission
and distribution utility shall modify ratchet provisions contained
in its tariffs applicable to each school, organization, or
association in accordance with Section 35.009, Utilities Code, as
added by this Act, not later than January 1, 2012.
SECTION 3. 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, 2011.