Texas 2021 - 87th Regular

Texas House Bill HB2483 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2483
	1	+	By: King of Parker, et al. H.B. No. 2483
	2	+	(Senate Sponsor - Hancock)
	3	+	(In the Senate - Received from the House April 21, 2021;
	4	+	May 6, 2021, read first time and referred to Committee on Business &
	5	+	Commerce; May 20, 2021, reported favorably by the following vote:
	6	+	Yeas 9, Nays 0; May 20, 2021, sent to printer.)
	7	+	Click here to see the committee vote
2	8
3	9
	10	+	A BILL TO BE ENTITLED
4	11		AN ACT
5	12		relating to utility facilities for restoring electric service after
6	13		a widespread power outage.
7	14		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	15		SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is
9	16		amended by adding Section 39.918 to read as follows:
10	17		Sec. 39.918. UTILITY FACILITIES FOR POWER RESTORATION AFTER
11	18		WIDESPREAD POWER OUTAGE. (a) In this section, "widespread power
12	19		outage" means an event that results in:
13	20		(1) a loss of electric power that:
14	21		(A) affects a significant number of distribution
15	22		customers of a transmission and distribution utility; and
16	23		(B) has lasted or is expected to last for at least
17	24		eight hours; and
18	25		(2) a risk to public safety.
19	26		(b) Notwithstanding any other provision of this subtitle, a
20	27		transmission and distribution utility may:
21	28		(1) lease and operate facilities that provide
22	29		temporary emergency electric energy to aid in restoring power to
23	30		the utility's distribution customers during a widespread power
24	31		outage in which:
25	32		(A) the independent system operator has ordered
26	33		the utility to shed load; or
27	34		(B) the utility's distribution facilities are
28	35		not being fully served by the bulk power system under normal
29	36		operations; and
30	37		(2) procure, own, and operate, or enter into a
31	38		cooperative agreement with other transmission and distribution
32	39		utilities to procure, own, and operate jointly, transmission and
33	40		distribution facilities that have a lead time of at least six months
34	41		and would aid in restoring power to the utility's distribution
35	42		customers following a widespread power outage. In this section,
36	43		long lead time facilities may not be electric energy storage
37	44		equipment or facilities under Chapter 35, Utilities Code.
38	45		(c) A transmission and distribution utility that leases and
39	46		operates facilities under Subsection (b)(1) may not sell electric
40	47		energy or ancillary services from those facilities.
41	48		(d) Facilities described by Subsection (b)(1):
42	49		(1) must be operated in isolation from the bulk power
43	50		system; and
44	51		(2) may not be included in independent system
45	52		operator:
46	53		(A) locational marginal pricing calculations;
47	54		(B) pricing; or
48	55		(C) reliability models.
49	56		(e) A transmission and distribution utility that leases and
50	57		operates facilities under Subsection (b)(1) shall ensure, to the
51	58		extent reasonably practicable, that retail customer usage during
52	59		operation of those facilities is adjusted out of the usage reported
53	60		for billing purposes by the retail customer's retail electric
54	61		provider.
55	62		(f) A transmission and distribution utility shall, when
56	63		reasonably practicable, use a competitive bidding process to lease
57	64		facilities under Subsection (b)(1).
58	65		(g) A transmission and distribution utility that leases and
59	66		operates facilities under Subsection (b)(1) or that procures, owns,
60	67		and operates facilities under Subsection (b)(2) shall include in
61	68		the utility's emergency operations plan filed with the commission,
62	69		as described by Section 186.007, a detailed plan on the utility's
63	70		use of those facilities.
64	71		(h) The commission shall permit:
65	72		(1) a transmission and distribution utility that
66	73		leases and operates facilities under Subsection (b)(1) to recover
67	74		the reasonable and necessary costs of leasing and operating the
68	75		facilities, including the present value of future payments required
69	76		under the lease, using the rate of return on investment established
70	77		in the commission's final order in the utility's most recent base
71	78		rate proceeding; and
72	79		(2) a transmission and distribution utility that
73	80		procures, owns, and operates facilities under Subsection (b)(2) to
74	81		recover the reasonable and necessary costs of procuring, owning,
75	82		and operating the facilities, using the rate of return on
76	83		investment established in the commission's final order in the
77	84		utility's most recent base rate proceeding.
78	85		(i) The commission shall authorize a transmission and
79	86		distribution utility to defer for recovery in a future ratemaking
80	87		proceeding the incremental operations and maintenance expenses and
81	88		the return, not otherwise recovered in a rate proceeding,
82	89		associated with the leasing or procurement, ownership, and
83	90		operation of the facilities.
84	91		(j) A transmission and distribution utility may request
85	92		recovery of the reasonable and necessary costs of leasing or
86	93		procuring, owning, and operating facilities under this section,
87	94		including any deferred expenses, through a proceeding under Section
88	95		36.210 or in another ratemaking proceeding. A lease under
89	96		Subsection (b)(1) must be treated as a capital lease or finance
90	97		lease for ratemaking purposes.
91	98		(k) This section expires September 1, 2029.
92	99		SECTION 2. Not later than January 1, 2029, the Public
93	100		Utility Commission of Texas shall:
94	101		(1) analyze the effects of authorizing transmission
95	102		and distribution utilities to lease, operate, procure, or own the
96	103		facilities described by Section 39.918(b), Utilities Code, as added
97	104		by this Act; and
98	105		(2) submit a report to the legislature that includes
99	106		the analysis produced under Subdivision (1) of this section and a
100	107		recommendation of whether the legislature should allow Section
101	108		39.918, Utilities Code, as added by this Act, to expire.
102	109		SECTION 3. This Act takes effect September 1, 2021.
103		-	______________________________ ______________________________
104		-	President of the Senate Speaker of the House
105		-	I certify that H.B. No. 2483 was passed by the House on April
106		-	21, 2021, by the following vote: Yeas 145, Nays 1, 1 present, not
107		-	voting; that the House refused to concur in Senate amendments to
108		-	H.B. No. 2483 on May 27, 2021, and requested the appointment of a
109		-	conference committee to consider the differences between the two
110		-	houses; and that the House adopted the conference committee report
111		-	on H.B. No. 2483 on May 30, 2021, by the following vote: Yeas 143,
112		-	Nays 0, 1 present, not voting.
113		-	______________________________
114		-	Chief Clerk of the House
115		-	I certify that H.B. No. 2483 was passed by the Senate, with
116		-	amendments, on May 22, 2021, by the following vote: Yeas 30, Nays
117		-	0; at the request of the House, the Senate appointed a conference
118		-	committee to consider the differences between the two houses; and
119		-	that the Senate adopted the conference committee report on H.B. No.
120		-	2483 on May 29, 2021, by the following vote: Yeas 31, Nays 0.
121		-	______________________________
122		-	Secretary of the Senate
123		-	APPROVED: __________________
124		-	Date
125		-	__________________
126		-	Governor
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