Texas 2023 - 88th Regular

Texas Senate Bill SB1015 Compare Versions

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1	1	S.B. No. 1015
2	2
3	3
4	4	AN ACT
5	5	relating to periodic rate adjustments by electric utilities.
6	6	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
7	7	SECTION 1. Section 36.210, Utilities Code, is amended by
8	8	amending Subsections (a), (d), and (g) and adding Subsections (h)
9	9	and (i) to read as follows:
10	10	(a) The commission [or a regulatory authority], on the
11	11	petition of an electric utility, may approve a tariff or rate
12	12	schedule in which a nonfuel rate may be periodically adjusted
13	13	upward or downward, based on changes in the parts of the utility's
14	14	invested capital, as described by Section 36.053, that are
15	15	categorized or functionalized as distribution plant,
16	16	distribution-related intangible plant, and distribution-related
17	17	communication equipment and networks in accordance with commission
18	18	rules adopted after consideration of the uniform system of accounts
19	19	prescribed by the Federal Energy Regulatory Commission. A
20	20	periodic rate adjustment must:
21	21	(1) be approved or denied in accordance with a [an
22	22	expedited] procedure that[:
23	23	[(A) provides for appropriate updates of
24	24	information;
25	25	[(B)] allows for participation by the office and
26	26	affected parties; [and
27	27	[(C) extends for not less than 60 days;]
28	28	(2) take into account changes in the number of an
29	29	electric utility's customers and the effects, on a
30	30	weather-normalized basis, that energy consumption and energy
31	31	demand have on the amount of revenue recovered through the electric
32	32	utility's base rates;
33	33	(3) be consistent with the manner in which costs for
34	34	invested capital described by this subsection were allocated to
35	35	each rate class, as approved by the commission, in an electric
36	36	utility's most recent base rate statement of intent proceeding with
37	37	changes to residential and commercial class rates reflected in
38	38	volumetric charges to the extent that residential and commercial
39	39	class rates are collected in that manner based on the electric
40	40	utility's most recent base rate statement of intent proceeding;
41	41	(4) not diminish the ability of the commission or a
42	42	regulatory authority, on its own motion or on complaint by an
43	43	affected person as provided by Subchapter D, after reasonable
44	44	notice and hearing, to change the existing rates of an electric
45	45	utility for a service after finding that the rates are unreasonable
46	46	or in violation of law;
47	47	(5) be applied by an electric utility on a system-wide
48	48	basis; and
49	49	(6) be supported by the sworn statement of an
50	50	appropriate employee of the electric utility that affirms that:
51	51	(A) the filing is in compliance with the
52	52	provisions of the tariff or rate schedule; and
53	53	(B) the filing is true and correct to the best of
54	54	the employee's knowledge, information, and belief.
55	55	(d) An [Except as provided by Subsection (d-1), an] electric
56	56	utility may adjust the utility's rates under this section not more
57	57	than twice [once] per year [and not more than four times between
58	58	comprehensive base rate proceedings].
59	59	(g) The commission shall adopt rules necessary to implement
60	60	this section. The rules must provide for:
61	61	(1) a procedure by which a tariff or rate schedule is
62	62	to be reviewed and approved;
63	63	(2) filing requirements and discovery consistent with
64	64	[the expedited procedure described by] Subsection (a) [(a)(1)];
65	65	(3) an earnings monitoring report that allows the
66	66	commission [or regulatory authority] to reasonably determine
67	67	whether a utility is earning in excess of the utility's allowed
68	68	return on investment as normalized for weather;
69	69	(4) denial of the electric utility's filing if the
70	70	electric utility is earning more than the utility's authorized rate
71	71	of return on investment, on a weather-normalized basis, at the time
72	72	the periodic rate adjustment request is filed; and
73	73	(5) a mechanism by which the commission may refund
74	74	customers any amounts determined to be improperly recovered through
75	75	a periodic rate adjustment, including any interest on the amounts.
76	76	(h) An electric utility may file a request for a periodic
77	77	rate adjustment under this section on any day on which the
78	78	commission is open for business, except that if the utility has a
79	79	base rate proceeding pending, the utility may not file the request
80	80	before the 185th day after the date the base rate proceeding was
81	81	initiated. The electric utility may revise a request to reflect the
82	82	final order issued in the base rate proceeding. The fact that an
83	83	electric utility has a base rate proceeding pending during a
84	84	proceeding conducted under this section does not establish grounds
85	85	for dismissal of either proceeding.
86	86	(i) The commission shall enter a final order on a request
87	87	for a periodic rate adjustment under this section not later than the
88	88	60th day after the date the request is filed. The commission may
89	89	extend the deadline for not more than 15 days for good cause.
90	90	SECTION 2. Section 36.210(d-1), Utilities Code, is
91	91	repealed.
92	92	SECTION 3. The changes in law made by this Act apply only to
93	93	a proceeding before the Public Utility Commission of Texas, or
94	94	other regulatory authority described by Section 11.003, Utilities
95	95	Code, that commences on or after the effective date of this Act. A
96	96	proceeding before the Public Utility Commission of Texas or other
97	97	regulatory authority described by Section 11.003, Utilities Code,
98	98	that commenced before the effective date of this Act is governed by
99	99	the law in effect on the date the proceeding commenced, and that law
100	100	is continued in effect for that purpose.
101	101	SECTION 4. This Act takes effect immediately if it receives
102	102	a vote of two-thirds of all the members elected to each house, as
103	103	provided by Section 39, Article III, Texas Constitution. If this
104	104	Act does not receive the vote necessary for immediate effect, this
105	105	Act takes effect September 1, 2023.
106	106	______________________________ ______________________________
107	107	President of the Senate Speaker of the House
108	108	I hereby certify that S.B. No. 1015 passed the Senate on
109	109	April 5, 2023, by the following vote: Yeas 31, Nays 0; and that
110	110	the Senate concurred in House amendment on May 25, 2023, by the
111	111	following vote: Yeas 31, Nays 0.
112	112	______________________________
113	113	Secretary of the Senate
114	114	I hereby certify that S.B. No. 1015 passed the House, with
115	115	amendment, on May 23, 2023, by the following vote: Yeas 135,
116	116	Nays 2, two present not voting.
117	117	______________________________
118	118	Chief Clerk of the House
119	119	Approved:
120	120	______________________________
121	121	Date
122	122	______________________________
123	123	Governor