Texas 2015 - 84th Regular

Texas House Bill HB1535 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Frullo, et al. (Senate Sponsor - Fraser) H.B. No. 1535
2		-	(In the Senate - Received from the House May 5, 2015;
3		-	May 5, 2015, read first time and referred to Committee on Natural
4		-	Resources and Economic Development; May 15, 2015, reported
5		-	favorably by the following vote: Yeas 10, Nays 0; May 15, 2015,
6		-	sent to printer.)
7		-	Click here to see the committee vote
	1	+	H.B. No. 1535
8	2
9	3
10		-	A BILL TO BE ENTITLED
11	4		AN ACT
12	5		relating to rates of and certificates of convenience and necessity
13	6		for certain non-ERCOT electric utilities; authorizing a surcharge.
14	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	8		SECTION 1. Subchapter C, Chapter 36, Utilities Code, is
16	9		amended by adding Section 36.112 to read as follows:
17	10		Sec. 36.112. COST RECOVERY AND RATE ADJUSTMENT STANDARDS
18	11		AND PROCEDURES FOR CERTAIN NON-ERCOT UTILITIES. (a) This section
19	12		applies only to an electric utility that operates solely outside of
20	13		ERCOT.
21	14		(b) In establishing the base rates of the electric utility
22	15		under this subchapter or Subchapter D, the regulatory authority
23	16		shall determine the utility's revenue requirement based on, at the
24	17		election of the utility:
25	18		(1) information submitted for a test year; or
26	19		(2) information submitted for a test year, updated to
27	20		include information that reflects the most current actual or
28	21		estimated information regarding increases and decreases in the
29	22		utility's cost of service, including expenses, capital investment,
30	23		cost of capital, and sales.
31	24		(c) An electric utility that elects to provide updated
32	25		information under Subsection (b)(2) must provide the information
33	26		for a period ending not later than the 30th day before the date the
34	27		applicable rate proceeding is filed.
35	28		(d) An electric utility that includes estimated information
36	29		in the initial filing of a proceeding shall supplement the filing
37	30		with actual information not later than the 45th day after the date
38	31		the initial filing was made. The regulatory authority shall extend
39	32		the deadline for concluding the rate proceeding for a period of time
40	33		equal to the period between the date the initial filing of the
41	34		proceeding was made and the date of the supplemental filing, except
42	35		that the extension period may not exceed 45 days.
43	36		(e) An electric utility that makes an election under
44	37		Subsection (b) is not precluded from proposing known and measurable
45	38		adjustments to the utility's historical rate information as
46	39		permitted by this title and regulatory authority rules.
47	40		(f) Without limiting the availability of known and
48	41		measurable adjustments described by Subsection (e), the regulatory
49	42		authority shall allow an affected electric utility to make a known
50	43		and measurable adjustment to include in the utility's rates the
51	44		prudent capital investment, a reasonable return on such capital
52	45		investment, depreciation expense, reasonable and necessary
53	46		operating expenses, and all attendant impacts, including any
54	47		offsetting revenue, as determined by the regulatory authority,
55	48		associated with a newly constructed or acquired natural gas-fired
56	49		generation facility. The regulatory authority is required to allow
57	50		the adjustment only if the facility is in service before the
58	51		effective date of new rates. The adjustment may be made regardless
59	52		of whether the investment is less than 10 percent of the utility's
60	53		rate base before the date of the adjustment.
61	54		(g) This section expires September 1, 2023.
62	55		SECTION 2. Subchapter E, Chapter 36, Utilities Code, is
63	56		amended by adding Section 36.211 to read as follows:
64	57		Sec. 36.211. RELATION BACK OF RATES FOR CERTAIN NON-ERCOT
65	58		UTILITIES. (a) This section applies only to an electric utility
66	59		that operates solely outside of ERCOT.
67	60		(b) In a rate proceeding under Subchapter D, or if requested
68	61		by an electric utility in the utility's statement of intent
69	62		initiating a rate proceeding under Subchapter C, notwithstanding
70	63		Section 36.109(a), the final rate set in the proceeding, whether a
71	64		rate increase or rate decrease, shall be made effective for
72	65		consumption on and after the 155th day after the date the
73	66		rate-filing package is filed.
74	67		(c) The regulatory authority shall:
75	68		(1) require the electric utility to refund to
76	69		customers money collected in excess of the rate finally ordered on
77	70		or after the 155th day after the date the rate-filing package is
78	71		filed; or
79	72		(2) authorize the electric utility to surcharge bills
80	73		to recover the amount by which the money collected on or after the
81	74		155th day after the date the rate-filing package is filed is less
82	75		than the money that would have been collected under the rate finally
83	76		ordered.
84	77		(d) The regulatory authority may require refunds or
85	78		surcharges of amounts determined under Subsection (c) over a period
86	79		not to exceed 18 months, along with appropriate carrying costs. The
87	80		regulatory authority shall make any adjustments necessary to
88	81		prevent over-recovery of amounts reflected in riders in effect for
89	82		the electric utility during the pendency of the rate proceeding.
90	83		(e) A utility may not assess more than one surcharge
91	84		authorized by Subsection (c)(2) at the same time.
92	85		(f) This section expires September 1, 2023.
93	86		SECTION 3. Subchapter E, Chapter 36, Utilities Code, is
94	87		amended by adding Section 36.212 to read as follows:
95	88		Sec. 36.212. RATE CASE REQUIREMENT FOR CERTAIN NON-ERCOT
96	89		UTILITIES. (a) This section applies only to an electric utility
97	90		that operates solely outside of ERCOT.
98	91		(b) The commission shall require an electric utility to make
99	92		the filings with regulatory authorities required by Subchapter B,
100	93		Chapter 33, and to file a rate-filing package under Subchapter D
101	94		with the commission to initiate a comprehensive base rate
102	95		proceeding before all of the utility's regulatory authorities:
103	96		(1) on or before the fourth anniversary of the date of
104	97		the final order in the electric utility's most recent comprehensive
105	98		base rate proceeding; or
106	99		(2) if, before the anniversary described by
107	100		Subdivision (1), the electric utility earns materially more than
108	101		the utility's authorized rate of return on investment, on a
109	102		weather-normalized basis, in the utility's two most recent
110	103		consecutive commission earnings monitoring reports.
111	104		(c) The electric utility must make the filings described by
112	105		Subsection (b) not later than the 120th day after the date the
113	106		commission notifies the utility of the requirement described by
114	107		Subsection (b). The 120-day period may be extended in the manner
115	108		provided by Section 36.153(b).
116	109		(d) The commission may extend the time period described by
117	110		Subsection (b)(1) and set a new deadline if the commission
118	111		determines that a comprehensive base rate case would not result in
119	112		materially different rates. The commission shall give interested
120	113		parties a reasonable opportunity to present materials and argument
121	114		before making a determination under this subsection.
122	115		(e) The commission shall adopt rules implementing this
123	116		section, including appropriate notice and scheduling requirements.
124	117		(f) This section does not limit the authority of a
125	118		regulatory authority under Subchapter D.
126	119		(g) This section expires September 1, 2023.
127	120		SECTION 4. Subchapter B, Chapter 37, Utilities Code, is
128	121		amended by adding Section 37.058 to read as follows:
129	122		Sec. 37.058. CERTIFICATE AND DETERMINATION ISSUED TO
130	123		CERTAIN NON-ERCOT UTILITIES FOR GENERATING FACILITY. (a) This
131	124		section applies only to an electric utility that operates solely
132	125		outside of ERCOT.
133	126		(b) An electric utility may file with the commission a
134	127		request that the commission:
135	128		(1) grant a certificate for an electric generating
136	129		facility;
137	130		(2) make a public interest determination for the
138	131		purchase of an existing electric generating facility under Section
139	132		14.101; or
140	133		(3) both grant a certificate and make a determination.
141	134		(c) Notwithstanding any other law, in a proceeding
142	135		involving the purchase of an existing electric generating facility,
143	136		the commission shall issue a final order on a certificate for the
144	137		facility or making a determination on the facility required by
145	138		Section 14.101, as applicable, not later than the 181st day after
146	139		the date a request for the certificate or determination is filed
147	140		with the commission under Subsection (b). For generating facilities
148	141		granted a certificate under this subsection, notwithstanding
149	142		Section 36.053, the utility's recoverable invested capital
150	143		included in rates shall be determined by the commission.
151	144		(d) Notwithstanding any other law, in a proceeding
152	145		involving a newly constructed generating facility, the commission
153	146		shall issue a final order on a certificate for the facility not
154	147		later than the 366th day after the date a request for the
155	148		certificate is filed with the commission under Subsection (b).
156	149		SECTION 5. The changes in law made by this Act are not
157	150		intended to affect the exercise of municipal jurisdiction under
158	151		Chapter 33, Utilities Code.
159	152		SECTION 6. The changes in law made by this Act apply only to
160	153		a proceeding before the Public Utility Commission of Texas or other
161	154		regulatory authority described by Section 11.003, Utilities Code,
162	155		that commences on or after the effective date of this Act. A
163	156		proceeding before the Public Utility Commission of Texas or other
164	157		regulatory authority described by Section 11.003, Utilities Code,
165	158		that commenced before the effective date of this Act is governed by
166	159		the law in effect on the date the proceeding commenced, and that law
167	160		is continued in effect for that purpose.
168	161		SECTION 7. This Act takes effect immediately if it receives
169	162		a vote of two-thirds of all the members elected to each house, as
170	163		provided by Section 39, Article III, Texas Constitution. If this
171	164		Act does not receive the vote necessary for immediate effect, this
172	165		Act takes effect September 1, 2015.
173		-	* * * * *
	166	+	______________________________ ______________________________
	167	+	President of the Senate Speaker of the House
	168	+	I certify that H.B. No. 1535 was passed by the House on May 4,
	169	+	2015, by the following vote: Yeas 114, Nays 25, 3 present, not
	170	+	voting.
	171	+	______________________________
	172	+	Chief Clerk of the House
	173	+	I certify that H.B. No. 1535 was passed by the Senate on May
	174	+	26, 2015, by the following vote: Yeas 30, Nays 1.
	175	+	______________________________
	176	+	Secretary of the Senate
	177	+	APPROVED: _____________________
	178	+	Date
	179	+	_____________________
	180	+	Governor