87R17172 CXP-F
By: King of Parker, Harless, Slawson, H.B. No. 2483
Hernandez, Darby, et al.
Substitute the following for H.B. No. 2483:
By: Paddie C.S.H.B. No. 2483
A BILL TO BE ENTITLED
AN ACT
relating to utility facilities for restoring electric service after
a widespread power outage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Section 39.918 to read as follows:
Sec. 39.918. UTILITY FACILITIES FOR POWER RESTORATION AFTER
WIDESPREAD POWER OUTAGE. (a) In this section, "widespread power
outage" means an event that results in:
(1) a loss of electric power affecting a significant
number of distribution customers of a transmission and distribution
utility; and
(2) a risk to public safety.
(b) Notwithstanding any other provision of this subtitle, a
transmission and distribution utility may:
(1) lease and operate facilities that provide
temporary emergency electric energy to aid in restoring power to
the utility's distribution customers during a widespread power
outage; and
(2) procure, own, and operate, or enter into a
cooperative agreement with other transmission and distribution
utilities to procure, own, and operate jointly, long lead time
facilities that would aid in restoring power to the utility's
distribution customers following a widespread power outage.
(c) A transmission and distribution utility that leases and
operates facilities under Subsection (b)(1) may not sell electric
energy or ancillary services from those facilities.
(d) A transmission and distribution utility that leases and
operates facilities under Subsection (b)(1) or that procures, owns,
and operates facilities under Subsection (b)(2) shall include in
the utility's emergency operations plan filed with the commission,
as described by Section 186.007, a detailed plan on the utility's
use of those facilities.
(e) The commission shall permit:
(1) a transmission and distribution utility that
leases and operates facilities under Subsection (b)(1) to recover
the reasonable and necessary costs of leasing and operating the
facilities, including the present value of future payments required
under the lease, using the rate of return on investment established
in the commission's final order in the utility's most recent base
rate proceeding; and
(2) a transmission and distribution utility that
procures, owns, and operates facilities under Subsection (b)(2) to
recover the reasonable and necessary costs of procuring, owning,
and operating the facilities, using the rate of return on
investment established in the commission's final order in the
utility's most recent base rate proceeding.
(f) The commission shall authorize a transmission and
distribution utility to defer for recovery in a future ratemaking
proceeding the incremental operations and maintenance expenses and
the return, not otherwise recovered in a rate proceeding,
associated with the leasing or procurement, ownership, and
operation of the facilities.
(g) A transmission and distribution utility may request
recovery of the reasonable and necessary costs of leasing or
procuring, owning, and operating facilities under this section,
including any deferred expenses, through a proceeding under Section
36.210 or in another ratemaking proceeding. A lease under
Subsection (b)(1) must be treated as a capital lease or finance
lease for ratemaking purposes.
SECTION 2. This Act takes effect September 1, 2021.