Texas 2023 - 88th Regular

Texas Senate Bill SB853 Compare Versions

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1	1	By: Hancock S.B. No. 853
2	2	(Goldman)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to electricity service provided by certain municipally
8	8	owned utilities.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Chapter 33, Utilities Code, is amended by adding
11	11	Subchapter F to read as follows:
12	12	SUBCHAPTER F. REVIEW OF RATES OF CERTAIN MUNICIPAL UTILITIES
13	13	Sec. 33.151. APPLICABILITY. This subchapter applies only
14	14	to a municipally owned utility that provides service in the Capitol
15	15	complex, as defined by Section 443.0071, Government Code.
16	16	Sec. 33.152. REVIEW OF RATES; CUSTOMER CHOICE. (a)
17	17	Notwithstanding any other law, a group of retail customers may file
18	18	a petition for commission review of current or proposed rates of a
19	19	municipally owned utility that apply to the petitioning customers.
20	20	The petition must be signed by at least five percent of the
21	21	municipally owned utility's customers. The signature of a retail
22	22	customer of a municipally owned utility may be counted as a valid
23	23	signature only on the first filed petition on which that customer's
24	24	signature appears.
25	25	(b) The commission shall initiate a proceeding not later
26	26	than the 90th day after the petition is submitted to determine
27	27	whether the rates of the municipally owned utility are consistent
28	28	with the rates available to similarly situated customers in areas
29	29	of the state that have access to customer choice. If the commission
30	30	determines that the rates of the municipally owned utility are
31	31	consistent with the rates available to similarly situated customers
32	32	in areas of the state that have access to customer choice, the
33	33	commission shall deny the petition.
34	34	(c) For the purposes of Subsection (b), the rates of the
35	35	municipally owned utility are inconsistent with the rates available
36	36	to similarly situated customers in areas of the state that have
37	37	access to customer choice if an average rate paid by the customers
38	38	of the municipally owned utility during the most recent five years
39	39	is at least 10 percent higher than the comparable average rate paid
40	40	during the same five-year period by similarly situated customers in
41	41	areas of the state that have access to customer choice.
42	42	(d) If the commission does not deny the petition under
43	43	Subsection (b), not later than the 90th day after the date of the
44	44	determination described by Subsection (b), the municipally owned
45	45	utility shall file a rate application with the commission that
46	46	complies in all material respects with the rules and forms
47	47	prescribed by the commission. The commission for good cause may
48	48	extend the deadline for filing the rate application.
49	49	(e) The commission shall conduct a full review of the rates
50	50	applicable to the petitioning customer or group to determine
51	51	whether those rates are just and reasonable using the standards
52	52	prescribed by Chapter 36, notwithstanding the lack of consistency
53	53	between those rates and rates available to similarly situated
54	54	customers in areas of the state that have access to customer choice.
55	55	If the commission determines that the rates are just and
56	56	reasonable, the commission shall deny the petition. If the
57	57	commission determines that the rates are not just and reasonable,
58	58	the commission shall set rates for the petitioning customer or
59	59	group that are just, reasonable, and consistent with the rates
60	60	available to similarly situated customers in areas of the state
61	61	that have access to customer choice.
62	62	(f) The commission shall:
63	63	(1) allow the municipally owned utility an opportunity
64	64	to respond to a review conducted under this section; and
65	65	(2) make publicly available on the commission's
66	66	Internet website the commission's review and the utility's
67	67	response.
68	68	Sec. 33.153. LIMITATION. The commission may not conduct
69	69	more than one review under this subchapter for each municipally
70	70	owned utility.
71	71	SECTION 2. Section 40.004, Utilities Code, is amended to
72	72	read as follows:
73	73	Sec. 40.004. JURISDICTION OF COMMISSION. Except as
74	74	specifically otherwise provided in this chapter, the commission has
75	75	jurisdiction over municipally owned utilities only for the
76	76	following purposes:
77	77	(1) to regulate wholesale transmission rates and
78	78	service, including terms of access, to the extent provided by
79	79	Subchapter A, Chapter 35;
80	80	(2) to regulate certification of retail service areas
81	81	to the extent provided by Chapter 37;
82	82	(3) to regulate rates:
83	83	(A) under Subchapter F, Chapter 33, subject to
84	84	Section 40.051(c); and
85	85	(B) on appeal under Subchapters D and E, Chapter
86	86	33, subject to Section 40.051(c);
87	87	(4) to establish a code of conduct as provided by
88	88	Section 39.157(e) applicable to anticompetitive activities and to
89	89	affiliate activities limited to structurally unbundled affiliates
90	90	of municipally owned utilities, subject to Section 40.054;
91	91	(5) to establish terms and conditions for open access
92	92	to transmission and distribution facilities for municipally owned
93	93	utilities providing customer choice, as provided by Section 39.203;
94	94	(6) to administer the renewable energy credits program
95	95	under Section 39.904(b) and the natural gas energy credits program
96	96	under Section 39.9044(b);
97	97	(7) to require reports of municipally owned utility
98	98	operations only to the extent necessary to:
99	99	(A) enable the commission to determine the
100	100	aggregate load and energy requirements of the state and the
101	101	resources available to serve that load; or
102	102	(B) enable the commission to determine
103	103	information relating to market power as provided by Section 39.155;
104	104	and
105	105	(8) to evaluate and monitor the cybersecurity
106	106	preparedness of a municipally owned utility described by Section
107	107	39.1516(a)(3) or (4).
108	108	SECTION 3. Section 40.051(c), Utilities Code, is amended to
109	109	read as follows:
110	110	(c) After a decision to offer customer choice has been made,
111	111	Subchapters D, [and] E, and F, Chapter 33, do not apply to any
112	112	action taken under this chapter.
113	113	SECTION 4. This Act takes effect September 1, 2023.