Texas 2013 - 83rd Regular

Texas House Bill HB550 Compare Versions

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1	1	83R20784 JJT-D
2	2	By: Turner of Harris, Reynolds H.B. No. 550
3	3	Substitute the following for H.B. No. 550:
4	4	By: Cook C.S.H.B. No. 550
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to financing programs for low-income electric customers
10	10	and certain other electric customers; lowering the amount of a fee;
11	11	imposing a fee.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 17.007, Utilities Code, is amended to
14	14	read as follows:
15	15	Sec. 17.007. ELIGIBILITY PROCESS FOR CUSTOMER SERVICE
16	16	DISCOUNTS. The commission by rule shall provide for an integrated
17	17	eligibility process for customer service discounts, including
18	18	discounts under Sections 39.9035 [39.903] and 55.015.
19	19	SECTION 2. Section 39.002, Utilities Code, is amended to
20	20	read as follows:
21	21	Sec. 39.002. APPLICABILITY. This chapter, other than
22	22	Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, 39.904,
23	23	39.9051, 39.9052, and 39.914(e), does not apply to a municipally
24	24	owned utility or an electric cooperative. Sections 39.157(e),
25	25	39.203, and 39.904, however, apply only to a municipally owned
26	26	utility or an electric cooperative that is offering customer
27	27	choice. If there is a conflict between the specific provisions of
28	28	this chapter and any other provisions of this title, except for
29	29	Chapters 40 and 41, the provisions of this chapter control.
30	30	SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is
31	31	amended by amending Section 39.903 and adding Section 39.9035 to
32	32	read as follows:
33	33	Sec. 39.903. SYSTEM BENEFIT FUND. (a) The system benefit
34	34	fund is an account in the general revenue fund. Money in the
35	35	account may be appropriated only for the purposes provided by this
36	36	section [or other law]. Interest earned on the system benefit fund
37	37	shall be credited to the fund. Section 403.095, Government Code,
38	38	does not apply to the system benefit fund.
39	39	(b) The system benefit fund is financed by a nonbypassable
40	40	system benefit fund fee set by the commission in an amount not to
41	41	exceed two [65] cents per megawatt hour. The system benefit fund
42	42	fee is allocated to customers based on the amount of kilowatt hours
43	43	used.
44	44	(c) The nonbypassable system benefit fund fee may not be
45	45	imposed on the retail electric customers of a municipally owned
46	46	utility or electric cooperative before the sixth month preceding
47	47	the date on which the utility or cooperative implements customer
48	48	choice. Money distributed from the system benefit fund to a
49	49	municipally owned utility or an electric cooperative shall be
50	50	proportional to the nonbypassable fee paid by the municipally owned
51	51	utility or the electric cooperative[, subject to the reimbursement
52	52	provided by Subsection (i)]. On request by a municipally owned
53	53	utility or electric cooperative, the commission shall reduce the
54	54	nonbypassable fee imposed on retail electric customers served by
55	55	the municipally owned utility or electric cooperative by an amount
56	56	equal to the amount provided by the municipally owned utility or
57	57	electric cooperative or its ratepayers for [local low-income
58	58	programs and] local programs that educate customers about the
59	59	retail electric market in a neutral and nonpromotional manner. The
60	60	commission shall adopt rules providing for reimbursements from
61	61	appropriated system benefit fund money for activities authorized
62	62	for funding under this section.
63	63	(d) The commission shall annually review and approve system
64	64	benefit fund accounts, projected revenue requirements, and
65	65	proposed nonbypassable fees. The commission shall report to the
66	66	electric utility restructuring legislative oversight committee if
67	67	the system benefit fund fee is insufficient to fund the purposes set
68	68	forth in Subsection (e) to the extent required by this section.
69	69	(e) Money in the system benefit fund may be appropriated to
70	70	provide funding solely for the following regulatory purposes [, in
71	71	the following order of priority]:
72	72	(1) [programs to:
73	73	[(A) assist low-income electric customers by
74	74	providing the 10 percent reduced rate prescribed by Subsection (h);
75	75	and
76	76	[(B) provide one-time bill payment assistance to
77	77	electric customers who are or who have in their households one or
78	78	more seriously ill or disabled low-income persons and who have been
79	79	threatened with disconnection for nonpayment;
80	80	[(2)] customer education programs;
81	81	(2) [,] administrative expenses incurred by the
82	82	commission in implementing and administering this chapter;
83	83	(3) [, and] expenses incurred by the office under this
84	84	chapter;
85	85	(4) [(3)] programs to assist low-income electric
86	86	customers by providing weatherization or other [the targeted]
87	87	energy efficiency programs [described by Subsection (f)(2);
88	88	[(4) programs to assist low-income electric customers
89	89	by providing the 20 percent reduced rate prescribed by Subsection
90	90	(h)]; and
91	91	(5) reimbursement to the commission and the Health and
92	92	Human Services Commission for expenses incurred in the
93	93	implementation and administration of an integrated eligibility
94	94	process created under Section 17.007 for customer service discounts
95	95	relating to retail electric service, including outreach expenses
96	96	the commission determines are reasonable and necessary.
97	97	(f) The legislature may appropriate from the system benefit
98	98	fund not more than $50 million each state fiscal biennium for the
99	99	purposes of Subsection (e)(4). Money appropriated from the system
100	100	benefit fund for the purposes of Subsection (e)(4) must be
101	101	transferred to the low-income electric customers program fund for
102	102	disbursement under Section 39.9035.
103	103	Sec. 39.9035. LOW-INCOME ELECTRIC CUSTOMERS PROGRAM FUND.
104	104	(a) In this section, "critical care residential customer" means a
105	105	residential customer who has a person permanently residing in the
106	106	customer's home who is diagnosed by a physician as being dependent
107	107	on an electric-powered medical device to sustain life.
108	108	(b) The commission shall adopt and enforce rules requiring
109	109	transmission and distribution utilities to establish a low-income
110	110	electric customers program fund under commission oversight. The
111	111	rules must provide for:
112	112	(1) the fund to be established as a trust fund outside
113	113	of the state treasury;
114	114	(2) the fund to be held by an administrator selected by
115	115	the transmission and distribution utilities in accordance with
116	116	standards adopted by the commission; and
117	117	(3) any interest earned on money in the fund to be
118	118	credited to the fund.
119	119	(c) The administrator serves as trustee of the fund for the
120	120	benefit of low-income electric customer programs described by this
121	121	section, and in accordance with commission rules, the administrator
122	122	may make any payments or reimbursements from the fund to further the
123	123	programs. Commission rules must prescribe the maximum percentage
124	124	of money available in the fund that may be used for the expenses of
125	125	administering the fund and for annual independent auditing of the
126	126	fund and expenditures and other transactions related to the fund.
127	127	The commission or its agents may at any time examine any records
128	128	related to the fund or investigate any fund-related expenditures or
129	129	expenses. The administrator and each transmission and distribution
130	130	utility shall fully cooperate with any investigation regarding the
131	131	fund conducted by the commission or its agents.
132	132	(d) The commission by rule shall impose a nonbypassable
133	133	low-income electric customers program fund fee to be set by the
134	134	commission in an amount not to exceed 50 cents per megawatt hour,
135	135	allocated to customers based on the amount of kilowatt hours used.
136	136	(e) The commission shall provide for a nonbypassable fee in
137	137	the same amount as the fee imposed under Subsection (d) to be
138	138	imposed on the retail electric customers of a municipally owned
139	139	utility or electric cooperative beginning on the first day of the
140	140	sixth month preceding the date on which the utility or cooperative
141	141	implements customer choice.
142	142	(f) Commission rules adopted under this section must
143	143	provide that the low-income electric customers program fund fees
144	144	collected for the programs described by this section are collected
145	145	through the rates of the transmission and distribution service
146	146	providers and deposited into the low-income electric customers
147	147	program fund.
148	148	(g) Except as provided by Subsection (h), money in the
149	149	low-income electric customers program fund may be spent only for
150	150	the following regulatory purposes and must be allocated as follows:
151	151	(1) not more than 96 percent of the money available in
152	152	the fund must be used to provide a 15 percent reduced rate for
153	153	low-income households for each billing period; and
154	154	(2) not more than 4 percent of the money available in
155	155	the fund must be used for bill payment assistance for critical care
156	156	residential customers with total household incomes not to exceed
157	157	400 percent of the federal poverty guidelines.
158	158	(h) Only money appropriated for the purposes of Section
159	159	39.903(e)(4) and transferred to the fund may be used to finance
160	160	low-income electric customer weatherization programs under this
161	161	section. The programs must be operated by a statewide network of
162	162	federal weatherization program providers under federal
163	163	weatherization program guidelines and may include related
164	164	low-income energy efficiency programs.
165	165	(i) [(f) Notwithstanding Section 39.106(b), the commission
166	166	shall adopt rules regarding programs to assist low-income electric
167	167	customers on the introduction of customer choice. The programs may
168	168	not be targeted to areas served by municipally owned utilities or
169	169	electric cooperatives that have not adopted customer choice. The
170	170	programs shall include:
171	171	[(1) reduced electric rates as provided by Subsections
172	172	(h)-(l); and
173	173	[(2) targeted energy efficiency programs to be
174	174	administered by the Texas Department of Housing and Community
175	175	Affairs in coordination with existing weatherization programs.
176	176	[(g)] Until customer choice is introduced in a power region,
177	177	an electric utility may not reduce, in any manner, programs already
178	178	offered to assist low-income electric customers.
179	179	(j) [(h)] The commission shall adopt rules for a retail
180	180	electric provider to determine a reduced rate for eligible
181	181	customers to be discounted off the standard retail service package
182	182	as approved by the commission under Section 39.106 and shall
183	183	require a retail electric provider to apply the same reduction to
184	184	any rate plan under which an eligible low-income electric customer
185	185	is receiving service [, or the price to beat established by Section
186	186	39.202, whichever is lower]. Municipally owned utilities and
187	187	electric cooperatives shall establish a reduced rate for eligible
188	188	customers to be discounted off the standard retail service package
189	189	established under Section 40.053 or 41.053, as appropriate. The
190	190	reduced rate for a retail electric provider shall result in a total
191	191	charge for each billing period that is at least 15 [10] percent
192	192	[and, if sufficient money in the system benefit fund is available,
193	193	up to 20 percent,] lower than the amount the customer would
194	194	otherwise be charged for each billing period. To the extent the
195	195	low-income electric customers program [system benefit] fund is
196	196	insufficient to pay for [fund] the 15 [initial 10] percent rate
197	197	reduction, the commission may increase the fee to an amount of not
198	198	more than 50 [65] cents per megawatt hour, as provided by Subsection
199	199	(d) [(b)]. If the fee is set at 50 [65] cents per megawatt hour or
200	200	if the commission determines that revenues anticipated to be due
201	201	for deposit to the fund are [appropriations are] insufficient to
202	202	pay for [fund] the 15 [10] percent rate reduction, the commission
203	203	shall [may] reduce the rate of the reduction to less than 15 [10]
204	204	percent. For a municipally owned utility or electric cooperative,
205	205	the reduced rate shall be equal to an amount that can be fully
206	206	funded by that portion of the nonbypassable fee proceeds paid by the
207	207	municipally owned utility or electric cooperative that is allocated
208	208	to the utility or cooperative by the commission under Subsection
209	209	(g) [(e)] for programs for low-income customers of the utility or
210	210	cooperative. The reduced rate for municipally owned utilities and
211	211	electric cooperatives under this section is in addition to any rate
212	212	reduction that may result from local programs for low-income
213	213	customers of the municipally owned utilities or electric
214	214	cooperatives.
215	215	(k) [(i)] A retail electric provider, municipally owned
216	216	utility, or electric cooperative seeking reimbursement from the
217	217	low-income electric customers program [system benefit] fund may not
218	218	charge an eligible low-income customer a rate higher than the
219	219	appropriate rate determined under Subsection (j) [(h)].
220	220	Commission rules must provide for [A retail electric provider not
221	221	subject to the price to beat, or] a municipally owned utility or
222	222	electric cooperative subject to the nonbypassable fee under
223	223	Subsection (e) to [(c), shall] be reimbursed from the [system
224	224	benefit] fund for the difference between the reduced rate and the
225	225	rate established under [Section 39.106 or, as appropriate, the rate
226	226	established under] Section 40.053 or 41.053, as appropriate. A
227	227	retail electric provider [who is subject to the price to beat] shall
228	228	be reimbursed from the [system benefit] fund for the difference
229	229	between the reduced rate and the rate plan under which the customer
230	230	is receiving service [the price to beat]. The commission shall
231	231	adopt rules providing for the reimbursement.
232	232	(l) [(j)] The commission shall adopt rules providing for
233	233	methods of enrolling customers eligible to receive the reduced
234	234	rates determined under Subsection (j) [(h)]. The rules must
235	235	provide for automatic enrollment as one enrollment option. The
236	236	Health and [Texas Department of] Human Services Commission, on
237	237	request of the commission, shall assist in the adoption and
238	238	implementation of these rules. The commission and the Health and
239	239	[Texas Department of] Human Services Commission shall enter into a
240	240	memorandum of understanding establishing the respective duties of
241	241	the agencies [commission and the department] in relation to the
242	242	automatic enrollment. Rules adopted under this section must
243	243	provide that:
244	244	(1) an electric customer eligible for the reduced
245	245	rates determined under Subsection (j) is also eligible for reduced
246	246	rates for telecommunications services offered for low-income
247	247	customers; and
248	248	(2) a customer eligible for reduced rates for
249	249	telecommunications services offered for low-income customers is
250	250	also eligible for the reduced rates established under Subsection
251	251	(j).
252	252	(m) [(j-1)] The commission shall adopt rules governing the
253	253	bill payment assistance program provided under Subsection (g)(2)
254	254	[(e)(1)(B)]. The rules must provide that a customer is eligible to
255	255	receive the assistance only if the assistance is necessary to
256	256	prevent the disconnection of service for nonpayment of bills for a
257	257	critical care residential customer [and the electric customer is or
258	258	has in the customer's household one or more seriously ill or
259	259	disabled low-income persons whose health or safety may be injured
260	260	by the disconnection]. The commission may prescribe the
261	261	documentation necessary to demonstrate eligibility for the
262	262	assistance and may establish additional eligibility criteria. The
263	263	Health and Human Services Commission, on request of the commission,
264	264	shall assist in the adoption and implementation of these rules.
265	265	(n) [(k)] A retail electric provider is prohibited from
266	266	charging the customer a fee for participation in the reduced rate
267	267	program.
268	268	(o) Notwithstanding Subsections (d), (e), (f), and (j), the
269	269	low-income electric customers program fund fee may not be imposed
270	270	after August 31, 2023. After that date, the commission and the
271	271	administrator shall undertake to continue the low-income electric
272	272	customers programs described by this section until the balance of
273	273	the fund is exhausted.
274	274	[(l) For the purposes of this section, a "low-income
275	275	electric customer" is an electric customer:
276	276	[(1) whose household income is not more than 125
277	277	percent of the federal poverty guidelines; or
278	278	[(2) who receives food stamps from the Texas
279	279	Department of Human Services or medical assistance from a state
280	280	agency administering a part of the medical assistance program.]
281	281	SECTION 4. Section 39.905(f), Utilities Code, is amended to
282	282	read as follows:
283	283	(f) Unless funding is provided under Section 39.9035
284	284	[39.903], each unbundled transmission and distribution utility
285	285	shall include in its energy efficiency plan a weatherization and
286	286	[targeted] low-income energy efficiency program as described by
287	287	Section 39.9035(h) [39.903(f)(2)], and the savings achieved by the
288	288	program shall count toward the transmission and distribution
289	289	utility's energy efficiency goal. The commission shall determine
290	290	the appropriate level of funding to be allocated to both the
291	291	required weatherization programs [targeted] and standard offer
292	292	low-income energy efficiency programs in each unbundled
293	293	transmission and distribution utility service area. The level of
294	294	funding for the required weatherization programs and low-income
295	295	energy efficiency programs shall be provided from money approved by
296	296	the commission for the transmission and distribution utility's
297	297	energy efficiency programs. The commission shall ensure that
298	298	annual expenditures for the required weatherization programs and
299	299	[targeted] low-income energy efficiency programs of each unbundled
300	300	transmission and distribution utility are not less than 10 percent
301	301	of the transmission and distribution utility's energy efficiency
302	302	budget for the year. A required weatherization program or a
303	303	[targeted] low-income energy efficiency program must comply with
304	304	the same audit requirements that apply to federal weatherization
305	305	subrecipients. In an energy efficiency cost recovery factor
306	306	proceeding related to expenditures under this subsection, the
307	307	commission shall make findings of fact regarding whether the
308	308	utility meets requirements imposed under this subsection. The
309	309	state agency that administers the federal weatherization
310	310	assistance program shall provide reports as required by the
311	311	commission to provide the most current information available on
312	312	energy and peak demand savings achieved in each transmission and
313	313	distribution utility service area. The agency shall participate in
314	314	energy efficiency cost recovery factor proceedings related to
315	315	expenditures under this subsection to ensure that the required
316	316	weatherization programs and [targeted] low-income weatherization
317	317	programs are consistent with federal weatherization programs and
318	318	adequately funded.
319	319	SECTION 5. Section 40.001(a), Utilities Code, is amended to
320	320	read as follows:
321	321	(a) Notwithstanding any other provision of law, except
322	322	Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, and 39.904,
323	323	this chapter governs the transition to and the establishment of a
324	324	fully competitive electric power industry for municipally owned
325	325	utilities. With respect to the regulation of municipally owned
326	326	utilities, this chapter controls over any other provision of this
327	327	title, except for sections in which the term "municipally owned
328	328	utility" is specifically used.
329	329	SECTION 6. Section 40.004, Utilities Code, is amended to
330	330	read as follows:
331	331	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
332	332	specifically otherwise provided in this chapter, the commission has
333	333	jurisdiction over municipally owned utilities only for the
334	334	following purposes:
335	335	(1) to regulate wholesale transmission rates and
336	336	service, including terms of access, to the extent provided by
337	337	Subchapter A, Chapter 35;
338	338	(2) to regulate certification of retail service areas
339	339	to the extent provided by Chapter 37;
340	340	(3) to regulate rates on appeal under Subchapters D
341	341	and E, Chapter 33, subject to Section 40.051(c);
342	342	(4) to establish a code of conduct as provided by
343	343	Section 39.157(e) applicable to anticompetitive activities and to
344	344	affiliate activities limited to structurally unbundled affiliates
345	345	of municipally owned utilities, subject to Section 40.054;
346	346	(5) to establish terms and conditions for open access
347	347	to transmission and distribution facilities for municipally owned
348	348	utilities providing customer choice, as provided by Section 39.203;
349	349	(6) to require collection of the nonbypassable fees
350	350	[fee] established under Section 39.903(b) and Section 39.9035(e);
351	351	(7) [and] to administer the renewable energy credits
352	352	program under Section 39.904(b) and the natural gas energy credits
353	353	program under Section 39.9044(b); and
354	354	(8) [(7)] to require reports of municipally owned
355	355	utility operations only to the extent necessary to:
356	356	(A) enable the commission to determine the
357	357	aggregate load and energy requirements of the state and the
358	358	resources available to serve that load; or
359	359	(B) enable the commission to determine
360	360	information relating to market power as provided by Section 39.155.
361	361	SECTION 7. Section 41.001, Utilities Code, is amended to
362	362	read as follows:
363	363	Sec. 41.001. APPLICABLE LAW. Notwithstanding any other
364	364	provision of law, except Sections 39.155, 39.157(e), 39.203,
365	365	39.903, 39.9035, and 39.904, this chapter governs the transition to
366	366	and the establishment of a fully competitive electric power
367	367	industry for electric cooperatives. Regarding the regulation of
368	368	electric cooperatives, this chapter shall control over any other
369	369	provision of this title, except for sections in which the term
370	370	"electric cooperative" is specifically used.
371	371	SECTION 8. The Public Utility Commission of Texas shall
372	372	adopt or revise, as necessary to implement this Act, rules
373	373	governing the system benefit fund and the low-income electric
374	374	customers program fund under Section 39.903, Utilities Code, as
375	375	amended by this Act, and Section 39.9035, Utilities Code, as added
376	376	by this Act, not later than January 1, 2014.
377	377	SECTION 9. This Act takes effect September 1, 2013.