83R5738 RWG-F
By: Davis S.B. No. 488
A BILL TO BE ENTITLED
AN ACT
relating to discounted utility rates for public educational
institutions; providing an administrative penalty.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. The heading to Section 36.351, Utilities Code,
is amended to read as follows:
Sec. 36.351. DISCOUNTED RATES FOR CERTAIN SCHOOLS AND
INSTITUTIONS OF HIGHER EDUCATION.
SECTION 2. Section 36.351, Utilities Code, is amended by
amending Subsections (a), (b), and (f) and adding Subsections (b-1)
and (d-1) to read as follows:
(a) Notwithstanding any other provision of this title, each
electric utility and transmission and distribution utility and,
except as provided by Subsection (d-1), each 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, junior [or] college, independent
school district, or open-enrollment charter school.
(b) The discount is a 20-percent reduction of the utility's
base rates that would otherwise be paid under the applicable
tariffed rate. The discount shall be provided either directly to an
educational entity described by Subsection (a) or to a retail
electric provider that also provides service to the educational
entity.
(b-1) A retail electric provider that receives a discount
under Subsection (b) shall apply the discount 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 certificate of a retail electric provider that does not
apply the discount as required by this subsection. The commission
shall impose an administrative penalty on a retail electric
provider that does not apply the discount as required by this
subsection.
(d-1) A municipally owned utility is exempt from the
requirement to discount charges for electric service provided to a
junior college, independent school district, or open-enrollment
charter school.
(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 educational entity [a state
university or college] that receives a discount under this section.
After September 1, 2013, an investor-owned electric utility is
subject to the requirements of this subsection unless a regulatory
authority authorizes other ratemaking treatment.
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, 2013.