| 1 | 1 | | 85R754 JXC-D |
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| 2 | 2 | | By: Workman H.B. No. 1460 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to electricity service provided by municipally owned |
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| 8 | 8 | | utilities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 33, Utilities Code, is amended by adding |
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| 11 | 11 | | Subchapter F to read as follows: |
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| 12 | 12 | | SUBCHAPTER F. REVIEW OF RATES OF CERTAIN MUNICIPAL UTILITIES |
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| 13 | 13 | | Sec. 33.151. APPLICABILITY. This subchapter applies only |
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| 14 | 14 | | to a municipally owned utility: |
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| 15 | 15 | | (1) that serves at least 400,000 customers; and |
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| 16 | 16 | | (2) whose service area is in the ERCOT power region in |
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| 17 | 17 | | a municipality with a population of less than 1.3 million. |
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| 18 | 18 | | Sec. 33.152. REVIEW OF RATES; CUSTOMER CHOICE. (a) |
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| 19 | 19 | | Notwithstanding any other law, a retail customer or group of |
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| 20 | 20 | | customers with a total usage of more than 25 million kilowatt hours |
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| 21 | 21 | | per year may file a petition for commission review of current or |
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| 22 | 22 | | proposed rates of a municipally owned utility that apply to the |
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| 23 | 23 | | petitioning customers. |
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| 24 | 24 | | (b) Not later than the 90th day after the date a petition is |
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| 25 | 25 | | filed with the commission, the municipally owned utility that is |
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| 26 | 26 | | the subject of the petition shall file a rate application with the |
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| 27 | 27 | | commission that complies in all material respects with the rules |
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| 28 | 28 | | and forms prescribed by the commission. The commission for good |
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| 29 | 29 | | cause may extend the deadline for filing the rate application. |
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| 30 | 30 | | (c) The commission shall conduct a full review of the rates |
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| 31 | 31 | | that apply to the petitioning customers to determine whether the |
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| 32 | 32 | | rates are: |
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| 33 | 33 | | (1) just and reasonable under Chapter 36; and |
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| 34 | 34 | | (2) consistent with rates available to similarly |
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| 35 | 35 | | situated customers in areas of the state that have access to |
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| 36 | 36 | | customer choice. |
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| 37 | 37 | | (d) If the commission finds that the rates are not just and |
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| 38 | 38 | | reasonable or are not consistent with the rates available to |
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| 39 | 39 | | similarly situated customers in areas of the state that have access |
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| 40 | 40 | | to customer choice, the commission shall: |
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| 41 | 41 | | (1) set rates for the petitioning customer or |
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| 42 | 42 | | customers that are just, reasonable, and consistent with the rates |
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| 43 | 43 | | available to similarly situated customers in areas of the state |
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| 44 | 44 | | that have access to customer choice; or |
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| 45 | 45 | | (2) set cost-based transmission and distribution |
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| 46 | 46 | | rates for the municipally owned utility and allow a petitioning |
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| 47 | 47 | | customer or customers to purchase electricity through a retail |
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| 48 | 48 | | electric provider. |
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| 49 | 49 | | SECTION 2. This Act takes effect immediately if it receives |
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| 50 | 50 | | a vote of two-thirds of all the members elected to each house, as |
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| 51 | 51 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 52 | 52 | | Act does not receive the vote necessary for immediate effect, this |
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| 53 | 53 | | Act takes effect September 1, 2017. |
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