| 1 | 1 | | 85R11233 GRM-F |
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| 2 | 2 | | By: Phillips H.B. No. 2346 |
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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 exempting certain customers from certain demand charges |
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| 8 | 8 | | by transmission and distribution 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. Section 36.009, Utilities Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | Sec. 36.009. BILLING DEMAND FOR CERTAIN UTILITY CUSTOMERS. |
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| 13 | 13 | | (a) Notwithstanding any other provision of this code, the |
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| 14 | 14 | | commission by rule shall require a transmission and distribution |
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| 15 | 15 | | utility to: |
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| 16 | 16 | | (1) waive the application of demand ratchet provisions |
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| 17 | 17 | | for each nonresidential secondary service customer that has a |
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| 18 | 18 | | maximum load factor equal to or below a factor set by commission |
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| 19 | 19 | | rule; |
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| 20 | 20 | | (2) implement procedures to verify annually whether |
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| 21 | 21 | | each nonresidential secondary service customer has a maximum load |
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| 22 | 22 | | factor that qualifies the customer for the waiver described by |
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| 23 | 23 | | Subdivision (1); |
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| 24 | 24 | | (3) specify in the utility's tariff whether the |
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| 25 | 25 | | utility's nonresidential secondary service customers that qualify |
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| 26 | 26 | | for the waiver described by Subdivision (1) are to be billed for |
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| 27 | 27 | | distribution service charges on the basis of: |
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| 28 | 28 | | (A) kilowatts; |
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| 29 | 29 | | (B) kilowatt-hours; or |
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| 30 | 30 | | (C) kilovolt-amperes; and |
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| 31 | 31 | | (4) modify the utility's tariff in the utility's next |
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| 32 | 32 | | base rate case to implement the waiver described by Subdivision (1) |
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| 33 | 33 | | and make the specification required by Subdivision (3). |
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| 34 | 34 | | (b) For each utility that has not initiated a base rate case |
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| 35 | 35 | | between May 28, 2011, and September 1, 2017, the commission shall |
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| 36 | 36 | | initiate before January 1, 2018, a proceeding to modify the |
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| 37 | 37 | | utility's tariff to implement the waiver described by Subsection |
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| 38 | 38 | | (a)(1) and make the specification required by Subsection (a)(3). |
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| 39 | 39 | | SECTION 2. This Act takes effect immediately if it receives |
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| 40 | 40 | | a vote of two-thirds of all the members elected to each house, as |
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| 41 | 41 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 42 | 42 | | Act does not receive the vote necessary for immediate effect, this |
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| 43 | 43 | | Act takes effect September 1, 2017. |
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