| 1 | 1 | | 86R7469 BRG-F |
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| 2 | 2 | | By: Nichols S.B. No. 661 |
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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 the establishment of rates for certain non-ERCOT |
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| 8 | 8 | | 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. Section 36.112(g), Utilities Code, is amended to |
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| 11 | 11 | | read as follows: |
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| 12 | 12 | | (g) This section expires September 1, 2031 [2023]. |
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| 13 | 13 | | SECTION 2. Section 36.211(f), Utilities Code, is amended to |
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| 14 | 14 | | read as follows: |
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| 15 | 15 | | (f) This section expires September 1, 2031 [2023]. |
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| 16 | 16 | | SECTION 3. Section 36.212(g), Utilities Code, is amended to |
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| 17 | 17 | | read as follows: |
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| 18 | 18 | | (g) This section expires September 1, 2031 [2023]. |
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| 19 | 19 | | SECTION 4. Subchapter E, Chapter 36, Utilities Code, is |
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| 20 | 20 | | amended by adding Section 36.213 to read as follows: |
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| 21 | 21 | | Sec. 36.213. RECOVERY OF GENERATION INVESTMENT BY NON-ERCOT |
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| 22 | 22 | | UTILITIES. (a) This section applies only to an electric utility |
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| 23 | 23 | | that operates solely outside of ERCOT. |
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| 24 | 24 | | (b) To encourage generation investment, an electric utility |
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| 25 | 25 | | may file, and the commission may approve, an application for a rider |
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| 26 | 26 | | to recover the electric utility's reasonable and necessary power |
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| 27 | 27 | | generation investment and costs associated with that investment. |
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| 28 | 28 | | (c) To enable full and timely recovery, an application under |
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| 29 | 29 | | Subsection (b) may be filed by the electric utility and approved by |
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| 30 | 30 | | the commission before the electric utility places the power |
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| 31 | 31 | | generation investment in service. |
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| 32 | 32 | | (d) Any rider approved under Subsection (b) shall take |
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| 33 | 33 | | effect on the date the power generation investment begins providing |
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| 34 | 34 | | service to the electric utility's customers. |
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| 35 | 35 | | (e) A rider approved under Subsection (b) shall account for |
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| 36 | 36 | | changes in the number of an electric utility's customers and the |
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| 37 | 37 | | effects, on a weather-normalized basis, that energy consumption and |
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| 38 | 38 | | energy demand have on the amount of revenue recovered through the |
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| 39 | 39 | | electric utility's base rates. |
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| 40 | 40 | | (f) The commission shall adopt rules as necessary to |
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| 41 | 41 | | implement this section. |
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| 42 | 42 | | SECTION 5. Not later than September 1, 2020, the Public |
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| 43 | 43 | | Utility Commission of Texas shall adopt rules required by Section |
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| 44 | 44 | | 36.213(f), Utilities Code, as added by this Act. |
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| 45 | 45 | | SECTION 6. This Act takes effect immediately if it receives |
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| 46 | 46 | | a vote of two-thirds of all the members elected to each house, as |
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| 47 | 47 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 48 | 48 | | Act does not receive the vote necessary for immediate effect, this |
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| 49 | 49 | | Act takes effect September 1, 2019. |
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