85R754 JXC-D
By: Workman H.B. No. 1460
A BILL TO BE ENTITLED
AN ACT
relating to electricity service provided by municipally owned
utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 33, Utilities Code, is amended by adding
Subchapter F to read as follows:
SUBCHAPTER F. REVIEW OF RATES OF CERTAIN MUNICIPAL UTILITIES
Sec. 33.151. APPLICABILITY. This subchapter applies only
to a municipally owned utility:
(1) that serves at least 400,000 customers; and
(2) whose service area is in the ERCOT power region in
a municipality with a population of less than 1.3 million.
Sec. 33.152. REVIEW OF RATES; CUSTOMER CHOICE. (a)
Notwithstanding any other law, a retail customer or group of
customers with a total usage of more than 25 million kilowatt hours
per year may file a petition for commission review of current or
proposed rates of a municipally owned utility that apply to the
petitioning customers.
(b) Not later than the 90th day after the date a petition is
filed with the commission, the municipally owned utility that is
the subject of the petition shall file a rate application with the
commission that complies in all material respects with the rules
and forms prescribed by the commission. The commission for good
cause may extend the deadline for filing the rate application.
(c) The commission shall conduct a full review of the rates
that apply to the petitioning customers to determine whether the
rates are:
(1) just and reasonable under Chapter 36; and
(2) consistent with rates available to similarly
situated customers in areas of the state that have access to
customer choice.
(d) If the commission finds that the rates are not just and
reasonable or are not consistent with the rates available to
similarly situated customers in areas of the state that have access
to customer choice, the commission shall:
(1) set rates for the petitioning customer or
customers that are just, reasonable, and consistent with the rates
available to similarly situated customers in areas of the state
that have access to customer choice; or
(2) set cost-based transmission and distribution
rates for the municipally owned utility and allow a petitioning
customer or customers to purchase electricity through a retail
electric provider.
SECTION 2. 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, 2017.