Texas 2025 - 89th Regular

Texas Senate Bill SB1022 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R7760 JXC-D
2	2	By: Kolkhorst, et al. S.B. No. 1022
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7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the recovery of vegetation management costs by electric
10	10	utilities.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Subchapter E, Chapter 36, Utilities Code, is
13	13	amended by adding Section 36.2031 to read as follows:
14	14	Sec. 36.2031. VEGETATION MANAGEMENT COST RECOVERY;
15	15	ADJUSTMENT OF VEGETATION MANAGEMENT FACTOR. (a) Section 36.201
16	16	does not prohibit the commission from reviewing and providing for
17	17	adjustments of an electric utility's vegetation management factor.
18	18	(b) The commission by rule shall implement procedures that
19	19	provide for the timely adjustment of an electric utility's
20	20	vegetation management factor. The rules must require that the
21	21	findings required by Section 36.058 regarding vegetation
22	22	management transactions with affiliated interests be made in a
23	23	vegetation management reconciliation proceeding or in a rate case
24	24	filed under Subchapter C or D. The rules must ensure that:
25	25	(1) the utility collects as contemporaneously as
26	26	reasonably possible the vegetation management costs that the
27	27	utility incurs and that the commission determines are eligible;
28	28	(2) the total of the utility's eligible vegetation
29	29	management costs, including any under-collected or over-collected
30	30	amounts to be recovered through an interim adjustment, is allocated
31	31	among customer classes based on actual historical calendar month
32	32	usage;
33	33	(3) any material balance of amounts under-collected or
34	34	over-collected for eligible vegetation management costs is
35	35	collected from or refunded to customers through an interim
36	36	adjustment:
37	37	(A) not later than the 90th day after the date the
38	38	balance is accrued; or
39	39	(B) if the adjustment would result in a total
40	40	bill increase of 10 percent or more compared to the total bill in
41	41	the month before implementation, not later than a date ordered by
42	42	the commission which must be after the 90th day after the date the
43	43	balance is accrued; and
44	44	(4) an affected party will receive notice and have the
45	45	opportunity to request a hearing before the commission.
46	46	(c) Notwithstanding Subsection (b)(3), on a finding that an
47	47	electric utility has an under-collected balance that is the result
48	48	of extraordinary vegetation management costs that are unlikely to
49	49	continue, the commission may approve an interim vegetation
50	50	management adjustment that would defer recovery to take place over
51	51	a period longer than 90 days.
52	52	(d) The commission is not required to hold a hearing on the
53	53	adjustment of an electric utility's vegetation management factor
54	54	under this section. If the commission holds a hearing, the
55	55	commission may consider at the hearing any evidence that is
56	56	appropriate and in the public interest.
57	57	(e) A customer of the electric utility, a municipality with
58	58	original jurisdiction over the utility, or the office may protest a
59	59	vegetation management factor or interim adjustment proposed under
60	60	this section. The prudence of costs may not be considered in a
61	61	vegetation management factor or interim adjustment proceeding and
62	62	may only be considered in a vegetation management reconciliation
63	63	proceeding under Subsection (h) or another appropriate proceeding.
64	64	(f) The sole issue that may be considered on a protest of a
65	65	vegetation management factor under Subsection (e) is whether the
66	66	factor reasonably reflects costs the electric utility will incur so
67	67	that the utility will not substantially under-collect or
68	68	over-collect the utility's reasonably stated vegetation management
69	69	costs on an ongoing basis. The commission may adjust the utility's
70	70	vegetation management factor based on its determination on that
71	71	issue.
72	72	(g) The commission shall hold a hearing on a protest of an
73	73	interim adjustment under Subsection (e) if the adjustment would
74	74	result in a total bill increase of 10 percent or more as described
75	75	by Subsection (b)(3) or if the adjustment results from
76	76	extraordinary vegetation management costs as described by
77	77	Subsection (c). In response to a protest of an interim adjustment,
78	78	if the commission finds that the electric utility is in a state of
79	79	material under-collection or over-collection of the utility's
80	80	reasonably stated eligible vegetation management costs and is
81	81	projected to remain in that state on an ongoing basis, the
82	82	commission shall order the utility to establish or modify an
83	83	interim adjustment to address the under-collection or
84	84	over-collection in a manner consistent with this section.
85	85	(h) An electric utility shall apply to reconcile the
86	86	vegetation management costs at least once every two years. The
87	87	application must be made not later than the 180th day after the last
88	88	day of the period to be reconciled. The commission may by rule
89	89	establish the calendar year timing of the reconciliation period for
90	90	each electric utility subject to this section to facilitate
91	91	efficient work by the commission. To the extent a reconciliation
92	92	results in a change to the electric utility's under-collected or
93	93	over-collected vegetation management balance, that change may be
94	94	incorporated into an interim adjustment as directed by the
95	95	commission.
96	96	(i) A proceeding under this section is not a rate case under
97	97	Subchapter C.
98	98	SECTION 2. This Act takes effect September 1, 2025.