Texas 2025 - 89th Regular

Texas House Bill HB5247 Compare Versions

Version 1 (Old)

Version 2 (New)

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1	1		By: Geren H.B. No. 5247
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4	6		A BILL TO BE ENTITLED
5	7		AN ACT
6	8		relating to alternative capital recovery process for certain
7	9		utilities.
8	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	11		SECTION 1. Subchapter E, Chapter 36, Utilities Code, is
10	12		amended by adding Section 36.2101 to read as follows:
11	13		Sec. 36.2101. SINGLE CAPITAL INVESTMENT PROCEDURE FOR
12	14		CERTAIN UTILITIES. (a) This section applies to an electric
13	15		utility, other than a river authority, that:
14	16		(1) operates solely inside ERCOT;
15	17		(2) is constructing transmission as part of a
16	18		reliability plan approved by the commission under Section 39.167;
17	19		and
18	20		(3) before September 1, 2025, and in the prior
19	21		calendar year made total capital expenditures in excess of 300% of
20	22		annual depreciation.
21	23		(b) An electric utility under Subsection (a) may elect to
22	24		file a single annual proceeding on a system-wide basis to adjust
23	25		non-fuel rates to reflect changes in transmission and distribution
24	26		invested capital in lieu of adjustments to retail and wholesale
25	27		transmission and distribution rates authorized under Sections
26	28		36.210 and 38.078 and under rules adopted by the commission under
27	29		Section 35.004.
28	30		(c) An electric utility making an election under this
29	31		section shall utilize the filing requirements adopted by the
30	32		commission for the adjustment proceedings referenced by Subsection
31	33		(b), except that:
32	34		(1) the utility may defer all or a portion of the
33	35		costs, including depreciation expense and carrying costs,
34	36		associated with the transmission and distribution invested capital
35	37		at the utility's weighted average cost of capital established in
36	38		the commission's final order in the utility's most recent base-rate
37	39		proceeding for invested capital, as described by Section 36.053,
38	40		not currently reflected in the utility's rates for recovery as a
39	41		regulatory asset. The commission shall include the regulatory
40	42		asset in rates set under this section and shall authorize
41	43		amortization of the asset over a period not to exceed 12 months,
42	44		unless such recovery period would cause the utility to earn in
43	45		excess of its authorized return on investment as normalized for
44	46		weather, in which case the commission shall authorize a longer
45	47		recovery period; and
46	48		(2) the utility may update the allocation of costs
47	49		among customer classes to reflect customer growth.
48	50		(d) The commission shall approve an adjustment under this
49	51		section not later than the 120th day after the date the request is
50	52		filed.
51	53		(1) The electric utility shall provide notice to
52	54		retail electric providers of the approved rates not later than the
53	55		45th day before the date the rates are effective.
54	56		(2) If the commission does not issue a final order
55	57		before the deadline under Subsection (d), the electric utility may
56	58		place the requested rates into effect on a temporary basis no
57	59		earlier than the 165th day after filing the request, provided that
58	60		the utility provides notice of its intention to place the temporary
59	61		rates into effect to retail electric providers not later than the
60	62		45th day before the date the rates take effect. The utility shall
61	63		refund or credit against future bills any difference between the
62	64		temporary rate and the final rate along with interest at the current
63	65		interest rate as determined by the commission.
64	66		(e) An electric utility making an election under this
65	67		section may not petition for another adjustment under this section,
66	68		an adjustment under Sections 36.210, 38.078, or an adjustment under
67	69		the commission's rules to implement Section 35.004 for a period of
68	70		12 months after the date the utility filed the request under
69	71		Subsection (b).
70	72		(f) Nothing in this section is intended to:
71	73		(1) conflict with a provision of a financing order
72	74		issued under Subchapter I of this chapter;
73	75		(2) affect the limitation on the commission's
74	76		jurisdiction under Section 32.002;
75	77		(3) limit the jurisdiction of a municipality over the
76	78		rates, operations, and services of an electric utility under
77	79		Section 33.001 or limit the ability of a municipality to obtain a
78	80		reimbursement under Section 33.023; or
79	81		(4) prevent the commission from:
80	82		(A) reviewing the investment costs included in an
81	83		adjustment under this section in the electric utility's next
82	84		comprehensive base-rate proceeding to determine whether the costs
83	85		were prudent, reasonable, and necessary; or
84	86		(B) refunding to customers any amount improperly
85	87		recovered through an adjustment under this section, with
86	88		appropriate carrying costs.
87	89		SECTION 2. As soon as practicable after the effective date
88	90		of this Act, the Public Utility Commission of Texas shall adopt
89	91		rules necessary to implement the changes in law made by this Act.
90	92		SECTION 3. This Act takes effect immediately if it receives
91	93		a vote of two-thirds of all the members elected to each house, as
92	94		provided by Section 39, Article III, Texas Constitution. If this
93	95		Act does not receive the vote necessary for immediate effect, this
94	96		Act takes effect September 1, 2025.