| 1 | 1 | | 86R9431 JXC-D |
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| 2 | 2 | | By: King of Parker H.B. No. 2829 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to electricity service provided by certain municipally |
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| 8 | 8 | | owned utilities. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 32, Utilities Code, is amended by adding |
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| 11 | 11 | | Subchapter D to read as follows: |
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| 12 | 12 | | SUBCHAPTER D. REVIEW OF RATES OF CERTAIN MUNICIPAL UTILITIES |
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| 13 | 13 | | Sec. 32.151. APPLICABILITY. This subchapter applies only |
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| 14 | 14 | | to a municipally owned utility that: |
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| 15 | 15 | | (1) owns generation assets; and |
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| 16 | 16 | | (2) is not governed by an independent board. |
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| 17 | 17 | | Sec. 32.152. REVIEW OF RATES; CUSTOMER CHOICE. (a) |
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| 18 | 18 | | Notwithstanding any other law, a retail customer or group of |
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| 19 | 19 | | customers may file a petition for commission review of current or |
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| 20 | 20 | | proposed rates of a municipally owned utility that apply to the |
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| 21 | 21 | | petitioning customer or group if the customer or group: |
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| 22 | 22 | | (1) has a non-demand metered total usage of more than |
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| 23 | 23 | | 100,000 kilowatt hours per year; or |
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| 24 | 24 | | (2) is served through a demand meter at secondary or |
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| 25 | 25 | | primary voltage. |
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| 26 | 26 | | (b) The commission shall initiate a proceeding not later |
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| 27 | 27 | | than the 90th day after the petition is submitted to determine |
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| 28 | 28 | | whether the rates of the municipally owned utility are consistent |
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| 29 | 29 | | with the rates available to similarly situated customers in areas |
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| 30 | 30 | | of the state that have access to customer choice. If the commission |
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| 31 | 31 | | determines that the rates of the municipally owned utility are |
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| 32 | 32 | | consistent with the rates available to similarly situated customers |
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| 33 | 33 | | in areas of the state that have access to customer choice, the |
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| 34 | 34 | | commission shall deny the petition. |
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| 35 | 35 | | (c) If the commission does not deny the petition under |
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| 36 | 36 | | Subsection (b), not later than the 90th day after the date of the |
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| 37 | 37 | | determination described by Subsection (b), the municipally owned |
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| 38 | 38 | | utility shall file a rate application with the commission that |
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| 39 | 39 | | complies in all material respects with the rules and forms |
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| 40 | 40 | | prescribed by the commission. The commission for good cause may |
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| 41 | 41 | | extend the deadline for filing the rate application. |
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| 42 | 42 | | (d) The commission shall conduct a full review of the rates |
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| 43 | 43 | | applicable to the petitioning customer or group to determine |
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| 44 | 44 | | whether those rates are just and reasonable using the standards |
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| 45 | 45 | | prescribed by Chapter 36, notwithstanding the lack of consistency |
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| 46 | 46 | | between those rates and rates available to similarly situated |
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| 47 | 47 | | customers in areas of the state that have access to customer choice. |
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| 48 | 48 | | If the commission determines that the rates are just and |
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| 49 | 49 | | reasonable, the commission shall deny the petition. If the |
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| 50 | 50 | | commission determines that the rates are not just and reasonable, |
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| 51 | 51 | | the commission shall set rates for the petitioning customer or |
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| 52 | 52 | | group that are just, reasonable, and consistent with the rates |
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| 53 | 53 | | available to similarly situated customers in areas of the state |
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| 54 | 54 | | that have access to customer choice. |
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| 55 | 55 | | SECTION 2. This Act takes effect September 1, 2019. |
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