| 1 | 1 | | 84R15721 DDT-F |
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| 2 | 2 | | By: Thompson of Harris, Harless, Murphy, H.B. No. 2327 |
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| 3 | 3 | | Oliveira, King of Parker |
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| 4 | 4 | | Substitute the following for H.B. No. 2327: |
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| 5 | 5 | | By: Giddings C.S.H.B. No. 2327 |
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| 6 | 6 | | |
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| 7 | 7 | | |
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| 8 | 8 | | A BILL TO BE ENTITLED |
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| 9 | 9 | | AN ACT |
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| 10 | 10 | | relating to studies on the rates of electric utilities. |
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| 11 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 12 | 12 | | SECTION 1. Section 36.210, Utilities Code, is amended by |
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| 13 | 13 | | amending Subsections (h) and (i) and adding Subsection (h-1) to |
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| 14 | 14 | | read as follows: |
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| 15 | 15 | | (h) The commission shall undertake a study and conduct a |
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| 16 | 16 | | report analyzing any periodic rate adjustment established under |
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| 17 | 17 | | this section. The study shall be available for the legislature's |
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| 18 | 18 | | review by January 31, 2019 [2017], so that the legislature may |
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| 19 | 19 | | properly be informed as to the need to continue the commission's |
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| 20 | 20 | | authority to allow periodic rate adjustments. The report shall |
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| 21 | 21 | | contain but shall not be limited to: |
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| 22 | 22 | | (1) an analysis of all periodic rate adjustments |
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| 23 | 23 | | approved by the commission; |
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| 24 | 24 | | (2) an analysis of the amounts in real dollars and |
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| 25 | 25 | | percentages of the approved amounts by the commission and the |
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| 26 | 26 | | effects on all classes of ratepayers; |
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| 27 | 27 | | (3) the costs savings, if any, realized by all parties |
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| 28 | 28 | | by utilizing periodic rate adjustment as opposed to ratemaking |
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| 29 | 29 | | proceedings; |
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| 30 | 30 | | (4) an analysis on distribution costs included in |
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| 31 | 31 | | periodic rate adjustments, and their appropriateness for inclusion |
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| 32 | 32 | | in periodic rate adjustments; and |
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| 33 | 33 | | (5) an analysis submitted by the office on the effects |
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| 34 | 34 | | of periodic rate adjustments. |
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| 35 | 35 | | (h-1) The commission shall conduct a study and make a report |
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| 36 | 36 | | analyzing alternative ratemaking mechanisms adopted by other |
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| 37 | 37 | | states and shall make recommendations regarding appropriate |
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| 38 | 38 | | reforms to the ratemaking process in this state. The commission |
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| 39 | 39 | | shall include in the report an analysis that demonstrates how the |
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| 40 | 40 | | commission's recommended reforms would improve the efficiency and |
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| 41 | 41 | | effectiveness of the oversight of electric utilities and ensure |
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| 42 | 42 | | that electric rates are just and reasonable, as required by this |
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| 43 | 43 | | chapter. The commission may retain an independent consultant, at |
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| 44 | 44 | | the expense of electric utilities, to conduct the study. The |
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| 45 | 45 | | commission shall provide the report to the legislature not later |
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| 46 | 46 | | than January 15, 2017. |
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| 47 | 47 | | (i) This section expires September [January] 1, 2019 |
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| 48 | 48 | | [2017]. |
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| 49 | 49 | | SECTION 2. This Act takes effect September 1, 2015. |
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