Texas 2025 - 89th Regular

Texas House Bill HB2869 Compare Versions

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Version 2 (New)

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1	1	89R12142 SCR-F
2	2	By: Metcalf H.B. No. 2869
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to a financing mechanism allowing electric utilities to
10	10	obtain recovery of costs associated with a weather-related event or
11	11	other natural disaster; granting authority to issue bonds.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. Section 36.451, Utilities Code, is amended by
14	14	amending Subsection (b) and adding Subsection (i) to read as
15	15	follows:
16	16	(b) The purpose of this subchapter is to make available a
17	17	lower-cost, supplemental financing mechanism to allow an electric
18	18	utility [operating solely outside of ERCOT] to obtain timely
19	19	recovery of system restoration costs under Subchapter I through
20	20	securitization and the issuance of transition bonds or system
21	21	restoration bonds by an issuer other than the electric utility or an
22	22	affiliated special purpose entity. Financing of system restoration
23	23	costs under this subchapter is a valid and essential public
24	24	purpose.
25	25	(i) Notwithstanding Section 36.403(j), an electric utility
26	26	may apply for securitization and the issuance of system restoration
27	27	bonds under this subchapter for estimated and actual system
28	28	restoration costs of $50 million or more in any calendar year.
29	29	SECTION 2. Section 36.456, Utilities Code, is amended by
30	30	adding Subsections (b-1), (b-2), and (b-3) to read as follows:
31	31	(b-1) Notwithstanding Sections 36.405(c) and (d), an
32	32	electric utility may file an application with the commission under
33	33	this subchapter for:
34	34	(1) a determination of the amount of estimated and
35	35	actual system restoration costs eligible for recovery and
36	36	securitization; and
37	37	(2) a financing order that authorizes the
38	38	securitization of estimated and actual system restoration costs,
39	39	the issuance of system restoration bonds, and the creation of
40	40	system restoration charges for the recovery of qualified costs.
41	41	(b-2) For an application filed under Subsection (b-1), the
42	42	commission shall issue an order that determines the amount of
43	43	estimated and actual system restoration costs eligible for recovery
44	44	and securitization and a financing order that authorizes the
45	45	securitization of estimated and actual system restoration costs,
46	46	the issuance of system restoration bonds, and the creation of
47	47	system restoration charges for the recovery of qualified costs not
48	48	later than the 150th day after the date the application is filed.
49	49	(b-3) For an application filed under Subsection (b-1), the
50	50	estimated system restoration costs shall be subject to true-up and
51	51	reconciliation and system restoration charges shall be adjusted
52	52	after the actual system restoration costs are known.
53	53	SECTION 3. This Act takes effect immediately if it receives
54	54	a vote of two-thirds of all the members elected to each house, as
55	55	provided by Section 39, Article III, Texas Constitution. If this
56	56	Act does not receive the vote necessary for immediate effect, this
57	57	Act takes effect September 1, 2025.