By: Hancock S.B. No. 735
(Cook)
A BILL TO BE ENTITLED
AN ACT
relating to periodic rate adjustment by and to certain transactions
involving electric utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 36, Utilities Code, is
amended by adding Section 36.157 to read as follows:
Sec. 36.157. RATE REVIEW SCHEDULE. (a) This section
applies only to an electric utility, other than a river authority,
that operates solely inside ERCOT.
(b) Notwithstanding any other provision of this title, not
later than June 1, 2018, the commission by rule shall establish a
schedule that requires an electric utility to make periodic filings
with the commission to modify or review base rates charged by the
electric utility. The schedule may be established on the basis of:
(1) the period since the commission entered the
commission's final order in the electric utility's most recent base
rate proceeding;
(2) whether the electric utility has earned materially
more than the utility's authorized rate of return on equity as
demonstrated by earnings monitoring reports; or
(3) other criteria that the commission determines is
in the public interest.
(c) The commission shall extend the date for the proceeding
required by Subsection (b) by one year on a year-to-year basis if,
180 days before the date the proceeding is required, the electric
utility's most recent earnings monitoring report shows the electric
utility is earning, on a weather-normalized basis, less than 50
basis points above:
(1) for a transmission and distribution utility, the
average of the most recent commission-approved rate of return on
equity for each transmission and distribution utility with 175,000
or more metered customers; and
(2) for a transmission-only utility, the average of
the most recent commission-approved rate of return on equity for
each transmission-only utility.
(d) The commission may extend the date for the proceeding
required by Subsection (b) for good cause shown or because of
resource constraints of the commission.
(e) This section does not limit the ability of a regulatory
authority to initiate a base rate proceeding at any time under this
title.
SECTION 2. Section 36.210, Utilities Code, is amended by
amending Subsection (d) and adding Subsection (d-1) to read as
follows:
(d) Except as provided by Subsection (d-1), an [An] electric
utility may adjust the utility's rates under this section not more
than once per year and not more than four times between
comprehensive base rate proceedings.
(d-1) For an electric utility subject to Section 36.157,
beginning on the effective date of the schedule adopted by the
commission under Section 36.157(b), the electric utility may adjust
the utility's rates under this section more than four times between
base rate proceedings.
SECTION 3. Section 39.262(m), Utilities Code, is amended to
read as follows:
(m) The commission shall approve a transaction under
Subsection (l) if the commission finds that the transaction is in
the public interest. In making its determination, the commission
shall consider whether the transaction will adversely affect the
reliability of service, availability of service, or cost of service
of the electric utility or transmission and distribution utility.
The commission shall make the determination concerning a
transaction under this subsection not later than the 180th day
after the date the commission receives the relevant report. The
commission may extend the deadline provided by this subsection for
not more than 60 days if the commission determines the extension is
needed to evaluate additional information, to consider actions
taken by other jurisdictions concerning the transaction, to provide
for administrative efficiency, or for other good cause. If the
commission has not made a determination before the expiration of
the deadline provided by or extended under this subsection [181st
day after that date], the transaction is considered approved.
SECTION 4. Section 39.915(b), Utilities Code, is amended to
read as follows:
(b) The commission shall approve a transaction under
Subsection (a) if the commission finds that the transaction is in
the public interest. In making its determination, the commission
shall consider whether the transaction will adversely affect the
reliability of service, availability of service, or cost of service
of the electric utility or transmission and distribution utility.
The commission shall make the determination concerning a
transaction under this subsection not later than the 180th day
after the date the commission receives the relevant report. The
commission may extend the deadline provided by this subsection for
not more than 60 days if the commission determines the extension is
needed to evaluate additional information, to consider actions
taken by other jurisdictions concerning the transaction, to provide
for administrative efficiency, or for other good cause. If the
commission has not made a determination before the expiration of
the deadline provided by or extended under this subsection [181st
day after that date], the transaction is considered approved.
SECTION 5. Sections 36.210(h), (h-1), and (i), Utilities
Code, are repealed.
SECTION 6. 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.