Texas 2023 - 88th Regular

Texas House Bill HB2073 Compare Versions

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1	1	H.B. No. 2073
2	2
3	3
4	4	AN ACT
5	5	relating to the recovery of fuel and purchased power costs by
6	6	electric utilities.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 36.203, Utilities Code, is amended to
9	9	read as follows:
10	10	Sec. 36.203. FUEL AND PURCHASED POWER COST RECOVERY;
11	11	ADJUSTMENT OF FUEL FACTOR. (a) Section 36.201 does not prohibit
12	12	the commission from reviewing and providing for adjustments of an
13	13	electric [a] utility's fuel factor.
14	14	(b) The commission by rule shall implement procedures that
15	15	provide for the timely adjustment of an electric [a] utility's fuel
16	16	factor[, with or without a hearing]. The rules [procedures] must
17	17	require that[:
18	18	[(1)] the findings required by Section 36.058
19	19	regarding fuel transactions with affiliated interests be [are] made
20	20	in a fuel reconciliation proceeding or in a rate case filed under
21	21	Subchapter C or D. The rules must ensure that:
22	22	(1) the utility collects as contemporaneously as
23	23	reasonably possible the electric fuel and purchased power costs
24	24	that the utility incurs and that the commission determines are
25	25	eligible;
26	26	(2) the total of the utility's eligible electric fuel
27	27	and purchased power costs, including any under-collected or
28	28	over-collected amounts to be recovered through an interim fuel
29	29	adjustment, is allocated among customer classes based on actual
30	30	historical calendar month usage;
31	31	(3) any material balance of amounts under-collected or
32	32	over-collected for eligible electric fuel and purchased power costs
33	33	is collected from or refunded to customers through an interim fuel
34	34	adjustment:
35	35	(A) not later than the 90th day after the date the
36	36	balance is accrued; or
37	37	(B) if the adjustment would result in a total
38	38	bill increase of 10 percent or more compared to the total bill in
39	39	the month before implementation, not later than a date ordered by
40	40	the commission which must be after the 90th day after the date the
41	41	balance is accrued; and
42	42	(4)[; and
43	43	[(2)] an affected party will receive notice and have
44	44	the opportunity to request a hearing before the commission.
45	45	(c) Notwithstanding Subsection (b)(3), on a finding that an
46	46	electric utility has an under-collected balance that is the result
47	47	of extraordinary electric fuel and purchased power costs that are
48	48	unlikely to continue, the commission may approve an interim fuel
49	49	adjustment that would defer recovery to take place over a period
50	50	longer than 90 days [The commission may adjust a utility's fuel
51	51	factor without a hearing if the commission determines that a
52	52	hearing is not necessary. If the commission holds a hearing, the
53	53	commission may consider at the hearing any evidence that is
54	54	appropriate and in the public interest].
55	55	(d) The commission is not required to hold a hearing on the
56	56	adjustment of an electric utility's fuel factor under this section.
57	57	If the commission holds a hearing, the commission may consider at
58	58	the hearing any evidence that is appropriate and in the public
59	59	interest [The commission shall render a timely decision approving,
60	60	disapproving, or modifying the adjustment to the utility's fuel
61	61	factor].
62	62	(e) A customer of the electric utility, a municipality with
63	63	original jurisdiction over the utility, or the office may protest a
64	64	fuel factor or interim fuel adjustment proposed under this section.
65	65	The prudence of costs may not be considered in a fuel factor or
66	66	interim fuel adjustment proceeding and may only be considered in a
67	67	fuel reconciliation proceeding under Subsection (h) or another
68	68	appropriate proceeding [The commission by rule shall provide for
69	69	the reconciliation of a utility's fuel costs on a timely basis].
70	70	(f) The sole issue that may be considered on a protest of a
71	71	fuel factor under Subsection (e) is whether the factor reasonably
72	72	reflects costs the electric utility will incur so that the utility
73	73	will not substantially under-collect or over-collect the utility's
74	74	reasonably stated fuel and purchased power costs on an ongoing
75	75	basis. The commission may adjust the utility's fuel factor based on
76	76	its determination on that issue.
77	77	(g) The commission shall hold a hearing on a protest of an
78	78	interim fuel adjustment under Subsection (e) if the adjustment
79	79	would result in a total bill increase of 10 percent or more as
80	80	described by Subsection (b)(3) or if the adjustment results from
81	81	extraordinary electric fuel and purchased power costs as described
82	82	by Subsection (c). In response to a protest of an interim fuel
83	83	adjustment, if the commission finds that the electric utility is in
84	84	a state of material under-collection or over-collection of the
85	85	utility's reasonably stated eligible fuel and purchased power costs
86	86	and is projected to remain in that state on an ongoing basis, the
87	87	commission shall order the utility to establish or modify an
88	88	interim fuel adjustment to address the under-collection or
89	89	over-collection in a manner consistent with this section.
90	90	(h) An electric utility shall apply to reconcile the
91	91	utility's electric fuel and purchased power costs at least once
92	92	every two years. The application must be made not later than the
93	93	180th day after the last day of the period to be reconciled. The
94	94	commission may by rule establish the calendar year timing of the
95	95	reconciliation period for each electric utility subject to this
96	96	section to facilitate efficient work by the commission. To the
97	97	extent a reconciliation results in a change to the electric
98	98	utility's under-collected or over-collected fuel balance, that
99	99	change may be incorporated into an interim fuel adjustment as
100	100	directed by the commission.
101	101	(i) A proceeding under this section is not a rate case under
102	102	Subchapter C.
103	103	SECTION 2. The first time an electric utility applies to
104	104	reconcile the utility's fuel costs and purchased power costs under
105	105	Section 36.203(h), Utilities Code, as added by this Act, after the
106	106	Public Utility Commission of Texas adopts the rules required to
107	107	implement that subsection, the electric utility shall include in
108	108	the application any period that has not been addressed in a previous
109	109	reconciliation proceeding.
110	110	SECTION 3. This Act takes effect September 1, 2023.
111	111	______________________________ ______________________________
112	112	President of the Senate Speaker of the House
113	113	I certify that H.B. No. 2073 was passed by the House on May 2,
114	114	2023, by the following vote: Yeas 145, Nays 0, 1 present, not
115	115	voting.
116	116	______________________________
117	117	Chief Clerk of the House
118	118	I certify that H.B. No. 2073 was passed by the Senate on May
119	119	15, 2023, by the following vote: Yeas 31, Nays 0.
120	120	______________________________
121	121	Secretary of the Senate
122	122	APPROVED: _____________________
123	123	Date
124	124	_____________________
125	125	Governor