Texas 2023 - 88th Regular

Texas House Bill HB3043 Compare Versions

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Version 2 (New)

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1	1	88R3413 JXC-F
2	2	By: Spiller H.B. No. 3043
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to periodic rate adjustments by electric utilities.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 36.210, Utilities Code, is amended by
10	10	amending Subsections (a), (d), (f), and (g) and adding Subsections
11	11	(h) and (i) to read as follows:
12	12	(a) The commission [or a regulatory authority], on the
13	13	petition of an electric utility, may approve a tariff or rate
14	14	schedule in which a nonfuel rate may be periodically adjusted
15	15	upward or downward, based on changes in the parts of the utility's
16	16	invested capital, as described by Section 36.053, that are
17	17	categorized or functionalized as distribution plant,
18	18	distribution-related intangible plant, and distribution-related
19	19	communication equipment and networks in accordance with commission
20	20	rules adopted after consideration of the uniform system of accounts
21	21	prescribed by the Federal Energy Regulatory Commission. A
22	22	periodic rate adjustment must:
23	23	(1) [be approved or denied in accordance with an
24	24	expedited procedure that:
25	25	[(A) provides for appropriate updates of
26	26	information;
27	27	[(B) allows for participation by the office and
28	28	affected parties; and
29	29	[(C) extends for not less than 60 days;
30	30	[(2) take into account changes in the number of an
31	31	electric utility's customers and the effects, on a
32	32	weather-normalized basis, that energy consumption and energy
33	33	demand have on the amount of revenue recovered through the electric
34	34	utility's base rates;
35	35	[(3)] be consistent with the manner in which costs for
36	36	invested capital described by this subsection were allocated to
37	37	each rate class, as approved by the commission, in an electric
38	38	utility's most recent base rate statement of intent proceeding with
39	39	changes to residential and commercial class rates reflected in
40	40	volumetric charges to the extent that residential and commercial
41	41	class rates are collected in that manner based on the electric
42	42	utility's most recent base rate statement of intent proceeding;
43	43	(2) [(4)] not diminish the ability of the commission
44	44	or a regulatory authority, on its own motion or on complaint by an
45	45	affected person as provided by Subchapter D, after reasonable
46	46	notice and hearing, to change the existing rates of an electric
47	47	utility for a service after finding that the rates are unreasonable
48	48	or in violation of law;
49	49	(3) [(5)] be applied by an electric utility on a
50	50	system-wide basis; and
51	51	(4) [(6)] be supported by the sworn statement of an
52	52	appropriate employee of the electric utility that affirms that:
53	53	(A) the filing is in compliance with the
54	54	provisions of the tariff or rate schedule; and
55	55	(B) the filing is true and correct to the best of
56	56	the employee's knowledge, information, and belief.
57	57	(d) An [Except as provided by Subsection (d-1), an] electric
58	58	utility may adjust the utility's rates under this section not more
59	59	than twice [once] per year [and not more than four times between
60	60	comprehensive base rate proceedings].
61	61	(f) Nothing in this section is intended to:
62	62	(1) conflict with a provision contained in a financing
63	63	order issued under Subchapter I of this chapter or Subchapter G or
64	64	J, Chapter 39;
65	65	(2) affect the limitation on the commission's
66	66	jurisdiction under Section 32.002;
67	67	(3) include in a periodic rate adjustment authorized
68	68	by this section costs adjusted under a transmission cost-of-service
69	69	adjustment approved under Section 35.004(d); or
70	70	(4) [limit the jurisdiction of a municipality over the
71	71	rates, operations, and services of an electric utility as provided
72	72	by Section 33.001;
73	73	[(5) limit the ability of a municipality to obtain a
74	74	reimbursement under Section 33.023 for the reasonable cost of
75	75	services of a person engaged in an activity described by that
76	76	section; or
77	77	[(6)] prevent the commission from:
78	78	(A) reviewing the investment costs included in a
79	79	periodic rate adjustment or in the following comprehensive base
80	80	rate proceeding to determine whether the costs were prudent,
81	81	reasonable, and necessary; or
82	82	(B) refunding to customers any amount improperly
83	83	recovered through the periodic rate adjustments, with appropriate
84	84	carrying costs.
85	85	(g) The commission shall adopt rules necessary to implement
86	86	this section. The rules must provide for:
87	87	(1) a procedure by which a tariff or rate schedule is
88	88	to be reviewed and approved;
89	89	(2) filing requirements and discovery consistent with
90	90	[the expedited procedure described by] Subsection (a) [(a)(1)];
91	91	(3) an earnings monitoring report that allows the
92	92	commission [or regulatory authority] to reasonably determine
93	93	whether a utility is earning in excess of the utility's allowed
94	94	return on investment as normalized for weather;
95	95	(4) denial of the electric utility's filing if the
96	96	electric utility is earning more than the utility's authorized rate
97	97	of return on investment, on a weather-normalized basis, at the time
98	98	the periodic rate adjustment request is filed; and
99	99	(5) a mechanism by which the commission may refund
100	100	customers any amounts determined to be improperly recovered through
101	101	a periodic rate adjustment, including any interest on the amounts.
102	102	(h) An electric utility may file a request for a periodic
103	103	rate adjustment under this section on any day on which the
104	104	commission is open for business. The fact that an electric utility
105	105	has a base rate proceeding pending during a proceeding conducted
106	106	under this section does not establish grounds for dismissal of
107	107	either proceeding.
108	108	(i) The commission shall enter a final order on a request
109	109	for a periodic rate adjustment under this section not later than the
110	110	60th day after the date the request is filed.
111	111	SECTION 2. Section 36.210(d-1), Utilities Code, is
112	112	repealed.
113	113	SECTION 3. The changes in law made by this Act apply only to
114	114	a proceeding before the Public Utility Commission of Texas, or
115	115	other regulatory authority described by Section 11.003, Utilities
116	116	Code, that commences on or after the effective date of this Act. A
117	117	proceeding before the Public Utility Commission of Texas or other
118	118	regulatory authority described by Section 11.003, Utilities Code,
119	119	that commenced before the effective date of this Act is governed by
120	120	the law in effect on the date the proceeding commenced, and that law
121	121	is continued in effect for that purpose.
122	122	SECTION 4. This Act takes effect immediately if it receives
123	123	a vote of two-thirds of all the members elected to each house, as
124	124	provided by Section 39, Article III, Texas Constitution. If this
125	125	Act does not receive the vote necessary for immediate effect, this
126	126	Act takes effect September 1, 2023.