Texas 2017 - 85th Regular

Texas House Bill HB3073 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	85R8977 JXC-D
2	2	By: Rodriguez of Travis H.B. No. 3073
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to financing programs for low-income electric customers
8	8	and certain other electric customers; imposing a fee.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 17.007, Utilities Code, is amended to
11	11	read as follows:
12	12	Sec. 17.007. ELIGIBILITY PROCESS FOR CUSTOMER SERVICE
13	13	DISCOUNTS. The commission by rule shall provide for an integrated
14	14	eligibility process for customer service discounts, including
15	15	discounts under Sections 39.9035 [39.903] and 55.015.
16	16	SECTION 2. Section 39.002, Utilities Code, is amended to
17	17	read as follows:
18	18	Sec. 39.002. APPLICABILITY. This chapter, other than
19	19	Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, 39.904,
20	20	39.9051, 39.9052, and 39.914(e), does not apply to a municipally
21	21	owned utility or an electric cooperative. Sections 39.157(e),
22	22	39.203, and 39.904, however, apply only to a municipally owned
23	23	utility or an electric cooperative that is offering customer
24	24	choice. If there is a conflict between the specific provisions of
25	25	this chapter and any other provisions of this title, except for
26	26	Chapters 40 and 41, the provisions of this chapter control.
27	27	SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is
28	28	amended by adding Section 39.9035 to read as follows:
29	29	Sec. 39.9035. LOW-INCOME ELECTRIC CUSTOMERS PROGRAM FUND.
30	30	(a) In this section, "critical care residential customer" means a
31	31	residential customer who has a person permanently residing in the
32	32	customer's home who is diagnosed by a physician as being dependent
33	33	on an electric-powered medical device to sustain life.
34	34	(b) The commission shall adopt and enforce rules requiring
35	35	transmission and distribution utilities to establish a low-income
36	36	electric customers program fund under commission oversight. The
37	37	rules must provide for:
38	38	(1) the fund to be established as a trust fund outside
39	39	of the state treasury;
40	40	(2) the fund to be held by an administrator selected by
41	41	the transmission and distribution utilities in accordance with
42	42	standards adopted by the commission; and
43	43	(3) any interest earned on money in the fund to be
44	44	credited to the fund.
45	45	(c) The administrator serves as trustee of the fund for the
46	46	benefit of low-income electric customer programs described by this
47	47	section, and in accordance with commission rules, the administrator
48	48	may make any payments or reimbursements from the fund to further the
49	49	programs. Commission rules must prescribe the maximum percentage
50	50	of money available in the fund that may be used for the expenses of
51	51	administering the fund and for annual independent auditing of the
52	52	fund and expenditures and other transactions related to the fund.
53	53	The commission or its agents may at any time examine any records
54	54	related to the fund or investigate any fund-related expenditures or
55	55	expenses. The administrator and each transmission and distribution
56	56	utility shall fully cooperate with any investigation regarding the
57	57	fund conducted by the commission or its agents.
58	58	(d) The commission by rule shall impose a nonbypassable
59	59	low-income electric customers program fund fee to be set by the
60	60	commission in an amount not to exceed 50 cents per megawatt hour,
61	61	allocated to customers based on the amount of kilowatt hours used.
62	62	(e) The commission shall provide for a nonbypassable fee in
63	63	the same amount as the fee imposed under Subsection (d) to be
64	64	imposed on the retail electric customers of a municipally owned
65	65	utility or electric cooperative beginning on the first day of the
66	66	sixth month preceding the date on which the utility or cooperative
67	67	implements customer choice.
68	68	(f) Commission rules adopted under this section must
69	69	provide that the low-income electric customers program fund fees
70	70	collected for the programs described by this section are collected
71	71	through the rates of the transmission and distribution service
72	72	providers and deposited into the low-income electric customers
73	73	program fund.
74	74	(g) Money in the low-income electric customers program fund
75	75	may be spent only for the following regulatory purposes and must be
76	76	allocated as follows:
77	77	(1) not more than 85 percent of the money available in
78	78	the fund must be used to provide a 15 percent reduced rate for
79	79	low-income households for each billing period;
80	80	(2) not more than 4 percent of the money available in
81	81	the fund must be used for bill payment assistance for critical care
82	82	residential customers with total household income not to exceed 400
83	83	percent of the federal poverty guidelines; and
84	84	(3) not less than 11 percent of the money available in
85	85	the fund must be used to finance low-income electric customer
86	86	weatherization programs to be operated by a statewide network of
87	87	federal weatherization program providers under federal
88	88	weatherization program guidelines.
89	89	(h) Until customer choice is introduced in a power region,
90	90	an electric utility may not reduce, in any manner, programs already
91	91	offered to assist low-income electric customers.
92	92	(i) The commission shall adopt rules for a retail electric
93	93	provider to determine a reduced rate for eligible customers to be
94	94	discounted off the standard retail service package as approved by
95	95	the commission under Section 39.106 and shall require a retail
96	96	electric provider to apply the same reduction to any rate plan under
97	97	which an eligible low-income electric customer is receiving
98	98	service. Municipally owned utilities and electric cooperatives
99	99	shall establish a reduced rate for eligible customers to be
100	100	discounted off the standard retail service package established
101	101	under Section 40.053 or 41.053, as appropriate. The reduced rate
102	102	for a retail electric provider shall result in a total charge for
103	103	each billing period that is at least 15 percent lower than the
104	104	amount the customer would otherwise be charged for each billing
105	105	period. To the extent the low-income electric customers program
106	106	fund is insufficient to pay for the 15 percent rate reduction, the
107	107	commission may increase the fee to an amount of not more than 50
108	108	cents per megawatt hour, as provided by Subsection (d). If the fee
109	109	is set at 50 cents per megawatt hour or if the commission determines
110	110	that revenues anticipated to be due for deposit to the fund are
111	111	insufficient to pay for the 15 percent rate reduction, the
112	112	commission shall reduce the rate of the reduction to less than 15
113	113	percent. For a municipally owned utility or electric cooperative,
114	114	the reduced rate shall be equal to an amount that can be fully
115	115	funded by that portion of the nonbypassable fee proceeds paid by the
116	116	municipally owned utility or electric cooperative that is allocated
117	117	to the utility or cooperative by the commission under Subsection
118	118	(g) for programs for low-income customers of the utility or
119	119	cooperative. The reduced rate for municipally owned utilities and
120	120	electric cooperatives under this section is in addition to any rate
121	121	reduction that may result from local programs for low-income
122	122	customers of the municipally owned utilities or electric
123	123	cooperatives.
124	124	(j) A retail electric provider, municipally owned utility,
125	125	or electric cooperative seeking reimbursement from the low-income
126	126	electric customers program fund may not charge an eligible
127	127	low-income customer a rate higher than the appropriate rate
128	128	determined under Subsection (i). Commission rules must provide for
129	129	a municipally owned utility or electric cooperative subject to the
130	130	nonbypassable fee under Subsection (e) to be reimbursed from the
131	131	fund for the difference between the reduced rate and the rate
132	132	established under Section 40.053 or 41.053, as appropriate. A
133	133	retail electric provider shall be reimbursed from the fund for the
134	134	difference between the reduced rate and the rate plan under which
135	135	the customer is receiving service. The commission shall adopt
136	136	rules providing for the reimbursement.
137	137	(k) The eligibility rules must provide that an electric
138	138	customer is eligible for the reduced rates determined under
139	139	Subsection (i) if:
140	140	(1) the customer's household income is not more than
141	141	125 percent of the federal poverty guidelines;
142	142	(2) the customer receives benefits under the
143	143	supplemental nutrition assistance program established under
144	144	Chapter 33, Human Resources Code; or
145	145	(3) the customer receives medical assistance under the
146	146	medical assistance program established under Chapter 32, Human
147	147	Resources Code.
148	148	(l) The eligibility rules must provide that:
149	149	(1) an electric customer eligible for the reduced
150	150	rates determined under Subsection (i) is also eligible for reduced
151	151	rates for telecommunications services offered for low-income
152	152	customers; and
153	153	(2) a customer eligible for reduced rates for
154	154	telecommunications services offered for low-income customers is
155	155	also eligible for the reduced rates determined under Subsection
156	156	(i).
157	157	(m) The commission shall adopt rules providing for methods
158	158	of enrolling customers eligible to receive the reduced rates
159	159	determined under Subsection (i). The rules must provide for
160	160	automatic enrollment as one enrollment option. The Health and
161	161	Human Services Commission, on request of the commission, shall
162	162	assist in the adoption and implementation of these rules. The
163	163	commission and the Health and Human Services Commission shall enter
164	164	into a memorandum of understanding establishing the respective
165	165	duties of the agencies in relation to the automatic enrollment.
166	166	(n) The commission shall adopt rules governing the bill
167	167	payment assistance program provided under Subsection (g)(2). The
168	168	commission may prescribe the documentation necessary to
169	169	demonstrate eligibility for the assistance and may establish
170	170	additional eligibility criteria. The Health and Human Services
171	171	Commission, on request of the commission, shall assist in the
172	172	adoption and implementation of these rules.
173	173	(o) A retail electric provider is prohibited from charging
174	174	the customer a fee for participation in the reduced rate program.
175	175	(p) Notwithstanding Subsections (d), (e), (f), and (i), the
176	176	low-income electric customers program fund fee may not be imposed
177	177	after August 31, 2027. After that date, the commission and the
178	178	administrator shall undertake to continue the low-income electric
179	179	customers programs described by this section until the balance of
180	180	the fund is exhausted.
181	181	SECTION 4. Section 39.905(f), Utilities Code, is amended to
182	182	read as follows:
183	183	(f) Each [Unless funding is provided under Section 39.903,
184	184	each] unbundled transmission and distribution utility shall
185	185	include in its energy efficiency plan a [targeted] low-income
186	186	energy efficiency program and a weatherization program as described
187	187	by Section 39.9035(g) [39.903(f)(2)], and the savings achieved by
188	188	the program shall count toward the transmission and distribution
189	189	utility's energy efficiency goal. The commission shall determine
190	190	the appropriate level of funding to be allocated to both the
191	191	required weatherization programs [targeted] and standard offer
192	192	low-income energy efficiency programs in each unbundled
193	193	transmission and distribution utility service area. The level of
194	194	funding for the required weatherization programs and low-income
195	195	energy efficiency programs shall be provided from money approved by
196	196	the commission for the transmission and distribution utility's
197	197	energy efficiency programs. The commission shall ensure that
198	198	annual expenditures for the required weatherization programs and
199	199	[targeted] low-income energy efficiency programs of each unbundled
200	200	transmission and distribution utility are not less than 10 percent
201	201	of the transmission and distribution utility's energy efficiency
202	202	budget for the year. A required weatherization program or a
203	203	[targeted] low-income energy efficiency program must comply with
204	204	the same audit requirements that apply to federal weatherization
205	205	subrecipients. In an energy efficiency cost recovery factor
206	206	proceeding related to expenditures under this subsection, the
207	207	commission shall make findings of fact regarding whether the
208	208	utility meets requirements imposed under this subsection. The
209	209	state agency that administers the federal weatherization
210	210	assistance program shall participate in energy efficiency cost
211	211	recovery factor proceedings related to expenditures under this
212	212	subsection to ensure that the required weatherization programs and
213	213	[targeted] low-income weatherization programs are consistent with
214	214	federal weatherization programs and adequately funded.
215	215	SECTION 5. Section 40.001(a), Utilities Code, is amended to
216	216	read as follows:
217	217	(a) Notwithstanding any other provision of law, except
218	218	Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, and 39.904,
219	219	this chapter governs the transition to and the establishment of a
220	220	fully competitive electric power industry for municipally owned
221	221	utilities. With respect to the regulation of municipally owned
222	222	utilities, this chapter controls over any other provision of this
223	223	title, except for sections in which the term "municipally owned
224	224	utility" is specifically used.
225	225	SECTION 6. Section 40.004, Utilities Code, is amended to
226	226	read as follows:
227	227	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
228	228	specifically otherwise provided in this chapter, the commission has
229	229	jurisdiction over municipally owned utilities only for the
230	230	following purposes:
231	231	(1) to regulate wholesale transmission rates and
232	232	service, including terms of access, to the extent provided by
233	233	Subchapter A, Chapter 35;
234	234	(2) to regulate certification of retail service areas
235	235	to the extent provided by Chapter 37;
236	236	(3) to regulate rates on appeal under Subchapters D
237	237	and E, Chapter 33, subject to Section 40.051(c);
238	238	(4) to establish a code of conduct as provided by
239	239	Section 39.157(e) applicable to anticompetitive activities and to
240	240	affiliate activities limited to structurally unbundled affiliates
241	241	of municipally owned utilities, subject to Section 40.054;
242	242	(5) to establish terms and conditions for open access
243	243	to transmission and distribution facilities for municipally owned
244	244	utilities providing customer choice, as provided by Section 39.203;
245	245	(6) to require collection of the nonbypassable fees
246	246	[fee] established under Section 39.903(b) and Section 39.9035(e);
247	247	(7) [and] to administer the renewable energy credits
248	248	program under Section 39.904(b) and the natural gas energy credits
249	249	program under Section 39.9044(b); and
250	250	(8) [(7)] to require reports of municipally owned
251	251	utility operations only to the extent necessary to:
252	252	(A) enable the commission to determine the
253	253	aggregate load and energy requirements of the state and the
254	254	resources available to serve that load; or
255	255	(B) enable the commission to determine
256	256	information relating to market power as provided by Section 39.155.
257	257	SECTION 7. Section 41.001, Utilities Code, is amended to
258	258	read as follows:
259	259	Sec. 41.001. APPLICABLE LAW. Notwithstanding any other
260	260	provision of law, except Sections 39.155, 39.157(e), 39.203,
261	261	39.903, 39.9035, and 39.904, this chapter governs the transition to
262	262	and the establishment of a fully competitive electric power
263	263	industry for electric cooperatives. Regarding the regulation of
264	264	electric cooperatives, this chapter shall control over any other
265	265	provision of this title, except for sections in which the term
266	266	"electric cooperative" is specifically used.
267	267	SECTION 8. The Public Utility Commission of Texas shall
268	268	adopt or revise, as necessary to implement this Act, rules
269	269	governing the low-income electric customers program fund under
270	270	Section 39.9035, Utilities Code, as added by this Act, not later
271	271	than January 1, 2018.
272	272	SECTION 9. This Act takes effect September 1, 2017.