Texas 2023 - 88th Regular

Texas House Bill HB4590 Compare Versions

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1	1	By: Orr H.B. No. 4590
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to charges imposed for costs related to Winter Storm Uri
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 104.361, Utilities Code, is amended by
9	9	adding Subsection (c) to read as follows:
10	10	(c) The legislature finds and declares that Winter Storm Uri
11	11	constituted a public calamity to this state due to the loss of life,
12	12	injury, property damage, and widespread disruptions of gas supply,
13	13	electricity, and utility services caused by prolonged freezing
14	14	temperatures, heavy snow, and freezing rain statewide.
15	15	SECTION 2. Section 104.373, Utilities Code, is amended by
16	16	adding Subsection (f) to read as follows:
17	17	(f) Notwithstanding any other law, a state agency may
18	18	provide money appropriated for the purpose to the issuing financing
19	19	entity to pay the aggregate customer rate relief charges authorized
20	20	by this subchapter on behalf of customers described by Subsection
21	21	(a).
22	22	SECTION 3. Chapter 403, Government Code, is amended by
23	23	adding Subchapter S to read as follows:
24	24	SUBCHAPTER S. STORM COST OFFSET FUND
25	25	Sec. 403.601. DEFINITIONS. In this subchapter:
26	26	(1) "Electric cooperative" means a corporation
27	27	organized and operating under Chapter 161, Utilities Code, or a
28	28	predecessor statute to Chapter 161, Utilities Code, and designated
29	29	by the legislature to receive a distribution from the storm cost
30	30	offset fund, or its designated agent.
31	31	(2) "Extraordinary costs and expenses" has the meaning
32	32	assigned by Section 41.152(4), Utilities Code.
33	33	(3) "Winter Storm Uri" means the North American winter
34	34	storm that occurred in February 2021.
35	35	Sec. 403.602. PURPOSE. (a) The legislature finds and
36	36	declares that Winter Storm Uri constituted a public calamity to
37	37	this state due to the loss of life, injury, property damage, and
38	38	widespread disruptions of gas supply, electricity, and utility
39	39	services caused by prolonged freezing temperatures, heavy snow, and
40	40	freezing rain statewide.
41	41	(b) The purpose of this subchapter is to reduce the rates or
42	42	charges that retail electric service customers would otherwise
43	43	experience because of extraordinary costs and expenses that
44	44	electric cooperatives incurred related to Winter Storm Uri and that
45	45	electric cooperatives seek to recover through temporary or
46	46	permanent rates or charges.
47	47	Sec. 403.603. STORM COST OFFSET FUND. (a) The storm cost
48	48	offset fund is created as a fund in the state treasury outside the
49	49	general revenue fund. The fund is composed of:
50	50	(1) money transferred to the fund at the direction of
51	51	the legislature;
52	52	(2) gifts and grants contributed to the fund; and
53	53	(3) other money required by law to be deposited in the
54	54	fund.
55	55	(b) Money deposited to the credit of the storm cost offset
56	56	fund must be used for the benefit of retail electric service
57	57	customers of electric cooperatives designated by the legislature to
58	58	receive a distribution from the fund. Money received by an electric
59	59	cooperative, or its designated agent, from the fund may be used only
60	60	to offset the rates or charges the electric cooperative imposes on
61	61	its retail electric service customers to recover extraordinary
62	62	costs and expenses or, for a generation and transmission
63	63	cooperative, those rates and charges imposed to recover
64	64	extraordinary costs and expenses from its member electric
65	65	cooperatives that serve retail electric service customers.
66	66	(c) The electric cooperative or its designated agent shall
67	67	implement an offset of rates or charges on a pro-rata basis to all
68	68	existing or future retail electric service customers obligated to
69	69	pay, on or after the date of the first retail electric service
70	70	invoice following the distribution, a rate or charge related to
71	71	recovery of the electric cooperative's extraordinary costs and
72	72	expenses. The offset shall be reflected as a credit on a retail
73	73	electric service customer's bill.
74	74	(d) A generation and transmission cooperative shall
75	75	implement an offset of rates or charges on a pro-rata basis to all
76	76	of its member electric cooperatives that receive a rate or charge to
77	77	recover the generation and transmission cooperative's
78	78	extraordinary costs and expenses, effective on the first billing
79	79	date following the distribution from the fund. The offset shall be
80	80	reflected as a credit on the member electric cooperative's bill.
81	81	(e) An electric cooperative that receives an offset
82	82	pursuant to Subsection (d) shall implement an offset of rates or
83	83	charges on a pro-rata basis to all existing or future retail
84	84	electric service customers obligated to pay a rate or charge to
85	85	recover extraordinary costs and expenses, on or after the date of
86	86	the first retail electric service invoice following the receipt of
87	87	an offset from a generation and transmission cooperative. The
88	88	electric cooperative's offset shall be reflected as a credit on a
89	89	retail electric service customer's bill.
90	90	(f) The comptroller shall promptly distribute money in the
91	91	fund as directed by the legislature for the benefit of retail
92	92	electric service customers of designated electric cooperatives or
93	93	retail electric service customers of the member electric
94	94	cooperatives of designated electric cooperatives. Distributions
95	95	received by an electric cooperative from the fund shall be held in
96	96	trust for the benefit of its retail electric service customers or
97	97	its member electric cooperatives that are entitled to offsets under
98	98	this subchapter.
99	99	(g) Interest earned on money deposited to the credit of the
100	100	storm cost offset fund is exempt from Government Code Section
101	101	404.071. Interest earned on money in the fund shall be retained in
102	102	the storm cost offset fund.
103	103	(h) An electric cooperative designated by the legislature
104	104	to receive a distribution from the fund shall cooperate with the
105	105	comptroller to carry out the purpose of the fund.
106	106	(i) An electric cooperative or its designated agent that
107	107	receives a distribution from the storm cost offset fund shall, by
108	108	March 1 each calendar year, submit a report to the Legislative
109	109	Budget Board stating the number of customers that have received an
110	110	offset to rates or charges, the total dollar amount of offsets
111	111	provided by the electric cooperative or its designated agent, the
112	112	amount of money remaining from the distribution, and how any
113	113	remaining money is being maintained and invested. An electric
114	114	cooperative or its designated agent shall submit the report for
115	115	each calendar year that it maintains money distributed from the
116	116	storm cost offset fund.
117	117	Section 403.604. EXPIRATION. (a) This subchapter expires on
118	118	September 1, 2028 except as provide by (b).
119	119	(b) If an electric cooperative that receives a distribution
120	120	from the storm cost offset fund is holding funds in trust beyond
121	121	September 1, 2028, the trust fund shall be operated according to
122	122	Section 403.603(b), (c), (d), (e), (f), (g) and (h) and those
123	123	provisions shall continue in effect for such purposes.
124	124	SECTION 4. This Act takes effect immediately if it receives
125	125	a vote of two-thirds of all the members elected to each house, as
126	126	provided by Section 39, Article III, Texas Constitution. If this
127	127	Act does not receive the vote necessary for immediate effect, this
128	128	Act takes effect September 1, 2023.