By: Fraser S.B. No. 774
(Thompson of Harris)
A BILL TO BE ENTITLED
AN ACT
relating to studies on the rates of electric utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.210, Utilities Code, is amended by
amending Subsections (h) and (i) and adding Subsection (h-1) to
read as follows:
(h) The commission shall undertake a study and conduct a
report analyzing any periodic rate adjustment established under
this section. The study shall be available for the legislature's
review by January 31, 2019 [2017], so that the legislature may
properly be informed as to the need to continue the commission's
authority to allow periodic rate adjustments. The report shall
contain but shall not be limited to:
(1) an analysis of all periodic rate adjustments
approved by the commission;
(2) an analysis of the amounts in real dollars and
percentages of the approved amounts by the commission and the
effects on all classes of ratepayers;
(3) the costs savings, if any, realized by all parties
by utilizing periodic rate adjustment as opposed to ratemaking
proceedings;
(4) an analysis on distribution costs included in
periodic rate adjustments, and their appropriateness for inclusion
in periodic rate adjustments; and
(5) an analysis submitted by the office on the effects
of periodic rate adjustments.
(h-1) The commission shall conduct a study and make a report
analyzing alternative ratemaking mechanisms adopted by other
states and shall make recommendations regarding appropriate
reforms to the ratemaking process in this state. The commission
shall include in the report an analysis that demonstrates how the
commission's recommended reforms would improve the efficiency and
effectiveness of the oversight of electric utilities and ensure
that electric rates are just and reasonable, as required by this
chapter. The commission may retain an independent consultant, at
the expense of electric utilities, to conduct the study. The
commission shall provide the report to the legislature not later
than January 15, 2017.
(i) This section expires September [January] 1, 2019
[2017].
SECTION 2. This Act takes effect September 1, 2015.