Texas 2019 - 86th Regular

Texas Senate Bill SB1098 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	86R7820 JXC-F
2	2	By: Buckingham S.B. No. 1098
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to rates for electricity charged by certain municipally
8	8	owned utilities and to the use of revenue from the rates.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter B, Chapter 40, Utilities Code, is
11	11	amended by adding Section 40.0521 to read as follows:
12	12	Sec. 40.0521. RATES OF AND USE OF REVENUE BY CERTAIN
13	13	UTILITIES NOT OFFERING CUSTOMER CHOICE. (a) This section applies
14	14	only to a municipally owned utility that provides service in the
15	15	Capitol complex, as defined by Section 443.0071, Government Code.
16	16	(b) This section does not require a municipally owned
17	17	utility to implement or opt for customer choice.
18	18	(c) In the case of a conflict between this section and
19	19	another provision of law, this section prevails.
20	20	(d) A municipally owned utility may not directly or
21	21	indirectly subsidize wholesale competitive activities through
22	22	rates charged for the provision of retail electric service that
23	23	include fixed or variable costs reasonably attributable to the
24	24	operation and maintenance of municipally owned utility assets that
25	25	generate energy for sale at wholesale.
26	26	(e) The commission by rule shall require a municipally owned
27	27	utility to submit to the commission information to allow the
28	28	commission to determine whether the municipally owned utility is
29	29	complying with the requirements of Subsection (d). The commission
30	30	shall notify the municipal governing body or body vested with the
31	31	power to manage and operate a municipally owned utility if the
32	32	commission determines that the municipally owned utility is not
33	33	complying with the requirements of Subsection (d).
34	34	(f) A municipal governing body or a body vested with the
35	35	power to manage and operate a municipally owned utility that
36	36	receives notice from the commission under Subsection (e):
37	37	(1) shall require the municipally owned utility to
38	38	comply with Subsection (d); and
39	39	(2) may, in a manner consistent with Section
40	40	40.055(a)(4), reasonably determine the amount of the municipally
41	41	owned utility's stranded investment and calculate and establish for
42	42	the municipally owned utility a non-bypassable charge reflecting
43	43	stranded costs properly attributable to the municipally owned
44	44	utility's retail electric service customers.
45	45	(g) The relevant date for identifying stranded investment
46	46	under Subsection (f) is November 30, 2010, instead of the date
47	47	specified in Section 40.055(a)(4). The amount and duration of the
48	48	charge under Subsection (f) must:
49	49	(1) be calculated in a similar manner to that
50	50	prescribed by Subchapter F, Chapter 39;
51	51	(2) include the calculation of nuclear
52	52	decommissioning costs as allowed by Sections 39.205 and 39.206; and
53	53	(3) consider the municipally owned utility's capital
54	54	and debt structure.
55	55	(h) A person affected by a determination made under this
56	56	section by a municipal governing body or a body vested with the
57	57	power to manage and operate a municipally owned utility may appeal
58	58	the determination to the commission by filing with the commission a
59	59	petition for review not later than the 30th day after the date of
60	60	the determination. An appeal under this section is de novo. The
61	61	commission shall enter a final order:
62	62	(1) approving the determination of the municipal
63	63	governing body or the body vested with the power to manage and
64	64	operate the municipally owned utility; or
65	65	(2) substituting the commission's own determination.
66	66	(i) A municipally owned utility may use the net proceeds of
67	67	its wholesale competitive activities for any purpose deemed
68	68	appropriate by the municipal governing body or a body vested with
69	69	the power to manage and operate the municipally owned utility.
70	70	Those purposes may include utility debt repayment, reduction of
71	71	purchased power costs, or transfers to the general fund. The
72	72	municipally owned utility shall:
73	73	(1) document and book the underlying transactions in
74	74	auditable form; and
75	75	(2) on at least an annual basis as part of the
76	76	budgeting process, disclose to the public the net amount of the
77	77	proceeds and the intended uses of the proceeds.
78	78	SECTION 2. A municipally owned utility described by Section
79	79	40.0521, Utilities Code, as added by this Act, that directly or
80	80	indirectly subsidizes competitive activities through rates charged
81	81	for the provision of retail electric service on the effective date
82	82	of this Act shall comply with Section 40.0521, Utilities Code, as
83	83	added by this Act, not later than March 1, 2020.
84	84	SECTION 3. This Act takes effect September 1, 2019.