By: Phelan, et al. H.B. No. 1397
(Senate Sponsor - Nichols, Schwertner)
(In the Senate - Received from the House April 8, 2019;
April 9, 2019, read first time and referred to Committee on
Business & Commerce; April 30, 2019, reported adversely, with
favorable Committee Substitute by the following vote: Yeas 9,
Nays 0; April 30, 2019, sent to printer.)
Click here to see the committee vote
COMMITTEE SUBSTITUTE FOR H.B. No. 1397 By: Nichols
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) An electric utility may file, and the commission may
approve, an application for a rider to recover the electric
utility's investment in a power generation facility.
(c) 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 facility in service.
(d) Any rider approved under Subsection (b) shall take
effect on the date the power generation facility begins providing
service to the electric utility's customers.
(e) Amounts recovered through a rider approved under
Subsection (b) are subject to reconciliation in the first
comprehensive base rate proceeding for the electric utility that
occurs after approval of the rider. During the reconciliation, the
commission shall determine if the amounts recovered through the
rider are reasonable and necessary.
(f) If a rider approved under Subsection (b) includes
recovery for a power generation facility that provides greater than
$200 million of Texas jurisdictional generation capacity, the
electric utility that filed the rider shall initiate a
comprehensive base rate proceeding at the commission not later than
18 months after the date the rider takes effect.
(g) The commission shall adopt rules as necessary to
implement this section.
(h) This section expires September 1, 2031.
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.
* * * * *