88R3451 ANG-F
By: Spiller H.B. No. 3042
A BILL TO BE ENTITLED
AN ACT
relating to the consideration of the proportion of long-term debt
and equity capitalization in establishing the rates of electric
utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 36, Utilities Code, is
amended by adding Section 36.067 to read as follows:
Sec. 36.067. CONSIDERATION OF PROPORTION OF LONG-TERM DEBT
AND EQUITY CAPITALIZATION. (a) Except as provided by Subsection
(b), when establishing an electric utility's rates, the regulatory
authority shall calculate the return on invested capital using the
utility's actual proportion of long-term debt and equity
capitalization as reported on the utility's most recent financial
statement issued before the initiation of the applicable rate
proceeding.
(b) If the electric utility's actual proportion of equity
capitalization exceeds 60 percent, the regulatory authority shall
calculate the return on invested capital using an equity
capitalization of 60 percent.
SECTION 2. (a) Section 36.067, Utilities Code, as added by
this Act, applies only to a proceeding for the establishment of
rates for which the regulatory authority has not issued a final
order or decision before the effective date of this Act.
(b) A proceeding for which the regulatory authority has
issued a final order or decision before the effective date of this
Act is governed by the law in effect immediately before that date,
and that law is continued in effect for that purpose.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2023.