Texas 2017 - 85th Regular

Texas Senate Bill SB735 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Hancock S.B. No. 735
2		-	(Cook)
	1	+	S.B. No. 735
3	2
4	3
5		-	A BILL TO BE ENTITLED
6	4		AN ACT
7	5		relating to periodic rate adjustment by and to certain transactions
8	6		involving electric utilities.
9	7		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	8		SECTION 1. Subchapter D, Chapter 36, Utilities Code, is
11	9		amended by adding Section 36.157 to read as follows:
12	10		Sec. 36.157. RATE REVIEW SCHEDULE. (a) This section
13	11		applies only to an electric utility, other than a river authority,
14	12		that operates solely inside ERCOT.
15	13		(b) Notwithstanding any other provision of this title, not
16	14		later than June 1, 2018, the commission by rule shall establish a
17	15		schedule that requires an electric utility to make periodic filings
18	16		with the commission to modify or review base rates charged by the
19	17		electric utility. The schedule may be established on the basis of:
20	18		(1) the period since the commission entered the
21	19		commission's final order in the electric utility's most recent base
22	20		rate proceeding;
23	21		(2) whether the electric utility has earned materially
24	22		more than the utility's authorized rate of return on equity as
25	23		demonstrated by earnings monitoring reports; or
26	24		(3) other criteria that the commission determines is
27	25		in the public interest.
28	26		(c) The commission shall extend the date for the proceeding
29	27		required by Subsection (b) by one year on a year-to-year basis if,
30	28		180 days before the date the proceeding is required, the electric
31	29		utility's most recent earnings monitoring report shows the electric
32	30		utility is earning, on a weather-normalized basis, less than 50
33	31		basis points above:
34	32		(1) for a transmission and distribution utility, the
35	33		average of the most recent commission-approved rate of return on
36	34		equity for each transmission and distribution utility with 175,000
37	35		or more metered customers; and
38	36		(2) for a transmission-only utility, the average of
39	37		the most recent commission-approved rate of return on equity for
40	38		each transmission-only utility.
41	39		(d) The commission may extend the date for the proceeding
42	40		required by Subsection (b) for good cause shown or because of
43	41		resource constraints of the commission.
44	42		(e) This section does not limit the ability of a regulatory
45	43		authority to initiate a base rate proceeding at any time under this
46	44		title.
47	45		SECTION 2. Section 36.210, Utilities Code, is amended by
48	46		amending Subsection (d) and adding Subsection (d-1) to read as
49	47		follows:
50	48		(d) Except as provided by Subsection (d-1), an [An] electric
51	49		utility may adjust the utility's rates under this section not more
52	50		than once per year and not more than four times between
53	51		comprehensive base rate proceedings.
54	52		(d-1) For an electric utility subject to Section 36.157,
55	53		beginning on the effective date of the schedule adopted by the
56	54		commission under Section 36.157(b), the electric utility may adjust
57	55		the utility's rates under this section more than four times between
58	56		base rate proceedings.
59	57		SECTION 3. Section 39.262(m), Utilities Code, is amended to
60	58		read as follows:
61	59		(m) The commission shall approve a transaction under
62	60		Subsection (l) if the commission finds that the transaction is in
63	61		the public interest. In making its determination, the commission
64	62		shall consider whether the transaction will adversely affect the
65	63		reliability of service, availability of service, or cost of service
66	64		of the electric utility or transmission and distribution utility.
67	65		The commission shall make the determination concerning a
68	66		transaction under this subsection not later than the 180th day
69	67		after the date the commission receives the relevant report. The
70	68		commission may extend the deadline provided by this subsection for
71	69		not more than 60 days if the commission determines the extension is
72	70		needed to evaluate additional information, to consider actions
73	71		taken by other jurisdictions concerning the transaction, to provide
74	72		for administrative efficiency, or for other good cause. If the
75	73		commission has not made a determination before the expiration of
76	74		the deadline provided by or extended under this subsection [181st
77	75		day after that date], the transaction is considered approved.
78	76		SECTION 4. Section 39.915(b), Utilities Code, is amended to
79	77		read as follows:
80	78		(b) The commission shall approve a transaction under
81	79		Subsection (a) if the commission finds that the transaction is in
82	80		the public interest. In making its determination, the commission
83	81		shall consider whether the transaction will adversely affect the
84	82		reliability of service, availability of service, or cost of service
85	83		of the electric utility or transmission and distribution utility.
86	84		The commission shall make the determination concerning a
87	85		transaction under this subsection not later than the 180th day
88	86		after the date the commission receives the relevant report. The
89	87		commission may extend the deadline provided by this subsection for
90	88		not more than 60 days if the commission determines the extension is
91	89		needed to evaluate additional information, to consider actions
92	90		taken by other jurisdictions concerning the transaction, to provide
93	91		for administrative efficiency, or for other good cause. If the
94	92		commission has not made a determination before the expiration of
95	93		the deadline provided by or extended under this subsection [181st
96	94		day after that date], the transaction is considered approved.
97	95		SECTION 5. Sections 36.210(h), (h-1), and (i), Utilities
98	96		Code, are repealed.
99	97		SECTION 6. This Act takes effect immediately if it receives
100	98		a vote of two-thirds of all the members elected to each house, as
101	99		provided by Section 39, Article III, Texas Constitution. If this
102	100		Act does not receive the vote necessary for immediate effect, this
103	101		Act takes effect September 1, 2017.
	102	+	______________________________ ______________________________
	103	+	President of the Senate Speaker of the House
	104	+	I hereby certify that S.B. No. 735 passed the Senate on
	105	+	April 19, 2017, by the following vote: Yeas 31, Nays 0.
	106	+	______________________________
	107	+	Secretary of the Senate
	108	+	I hereby certify that S.B. No. 735 passed the House on
	109	+	May 17, 2017, by the following vote: Yeas 142, Nays 1, two
	110	+	present not voting.
	111	+	______________________________
	112	+	Chief Clerk of the House
	113	+	Approved:
	114	+	______________________________
	115	+	Date
	116	+	______________________________
	117	+	Governor