86R21732 E
By: Phelan, Metcalf, Paddie, Price, Moody, H.B. No. 1397
et al.
A BILL TO BE ENTITLED
AN ACT
relating to the establishment of rates for certain non-ERCOT
utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.112(g), Utilities Code, is amended to
read as follows:
(g) This section expires September 1, 2031 [2023].
SECTION 2. Section 36.211(f), Utilities Code, is amended to
read as follows:
(f) This section expires September 1, 2031 [2023].
SECTION 3. Section 36.212(g), Utilities Code, is amended to
read as follows:
(g) This section expires September 1, 2031 [2023].
SECTION 4. Subchapter E, Chapter 36, Utilities Code, is
amended by adding Section 36.213 to read as follows:
Sec. 36.213. RECOVERY OF GENERATION INVESTMENT BY NON-ERCOT
UTILITIES. (a) This section applies only to an electric utility
that operates solely outside of ERCOT.
(b) To encourage generation investment, an electric utility
may file, and the commission may approve, an application for a rider
to recover the electric utility's reasonable and necessary power
generation investment and costs associated with that investment.
(c) To enable full and timely recovery, an application under
Subsection (b) may be filed by the electric utility and approved by
the commission before the electric utility places the power
generation investment in service.
(d) Any rider approved under Subsection (b) shall take
effect on the date the power generation investment begins providing
service to the electric utility's customers.
(e) If a rider approved under Subsection (b) includes
incremental generation investment greater than $200 million on a
Texas jurisdictional basis, the electric utility that filed the
rider shall initiate a comprehensive base rate proceeding at the
commission not later than eighteen months after the date the rider
takes effect.
(f) A rider approved under Subsection (b) shall account for
changes in the number of an electric utility's customers and the
effects, on a weather-normalized basis, that energy consumption and
energy demand have on the amount of revenue recovered through the
electric utility's base rates.
(g) The commission shall adopt rules as necessary to
implement this section.
SECTION 5. Not later than September 1, 2020, the Public
Utility Commission of Texas shall adopt rules required by Section
36.213(g), Utilities Code, as added by this Act.
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, 2019.