83R10282 JJT-F By: Watson S.B. No. 1279 A BILL TO BE ENTITLED AN ACT relating to cost recovery for certain demand-side electric energy resources in the competitive electric market. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 39.107(h), Utilities Code, is amended to read as follows: (h) The commission shall establish a nonbypassable surcharge for an electric utility or transmission and distribution utility to use to recover reasonable and necessary costs incurred in deploying advanced metering and meter information networks to residential customers and nonresidential customers other than those required by the independent system operator to have an interval data recorder meter, including costs incurred in deploying equipment needed for voluntary participation by residential or commercial customers in demand response programs through a third party or through a retail electric provider or other third party using automated load controls. The commission shall ensure that the nonbypassable surcharge reflects a deployment of advanced meters that is no more than one-third of the utility's total meters over each calendar year and shall ensure that the nonbypassable surcharge does not result in the utility recovering more than its actual, fully allocated costs for the utility's meter and meter information network, including costs associated with deploying systems described by this subsection. The expenses must be allocated to the customer classes receiving the services, based on the electric utility's most recently approved tariffs. SECTION 2. This Act takes effect September 1, 2013.