| 7 | 5 | | |
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| 8 | 6 | | |
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| 9 | 7 | | A BILL TO BE ENTITLED |
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| 10 | 8 | | AN ACT |
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| 11 | 9 | | relating to a financing mechanism allowing electric utilities to |
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| 12 | 10 | | obtain recovery of costs associated with a weather-related event or |
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| 13 | 11 | | other natural disaster; granting authority to issue bonds. |
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| 14 | 12 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 15 | 13 | | SECTION 1. Section 36.451, Utilities Code, is amended by |
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| 16 | 14 | | amending Subsection (b) and adding Subsection (i) to read as |
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| 17 | 15 | | follows: |
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| 18 | 16 | | (b) The purpose of this subchapter is to make available a |
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| 19 | 17 | | lower-cost, supplemental financing mechanism to allow an electric |
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| 20 | 18 | | utility [operating solely outside of ERCOT] to obtain timely |
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| 21 | 19 | | recovery of system restoration costs under Subchapter I through |
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| 22 | 20 | | securitization and the issuance of transition bonds or system |
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| 23 | 21 | | restoration bonds by an issuer other than the electric utility or an |
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| 24 | 22 | | affiliated special purpose entity. Financing of system restoration |
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| 25 | 23 | | costs under this subchapter is a valid and essential public |
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| 26 | 24 | | purpose. |
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| 27 | 25 | | (i) Notwithstanding Section 36.403(j), an electric utility |
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| 28 | 26 | | may apply for securitization and the issuance of system restoration |
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| 29 | 27 | | bonds under this subchapter for estimated and actual system |
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| 30 | 28 | | restoration costs of $50 million or more in any calendar year. |
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| 31 | 29 | | SECTION 2. Section 36.456, Utilities Code, is amended by |
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| 32 | 30 | | adding Subsections (b-1), (b-2), and (b-3) to read as follows: |
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| 33 | 31 | | (b-1) Notwithstanding Sections 36.405(c) and (d), an |
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| 34 | 32 | | electric utility may file an application with the commission under |
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| 35 | 33 | | this subchapter for: |
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| 36 | 34 | | (1) a determination of the amount of estimated and |
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| 37 | 35 | | actual system restoration costs eligible for recovery and |
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| 38 | 36 | | securitization; and |
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| 39 | 37 | | (2) a financing order that authorizes the |
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| 40 | 38 | | securitization of estimated and actual system restoration costs, |
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| 41 | 39 | | the issuance of system restoration bonds, and the creation of |
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| 42 | 40 | | system restoration charges for the recovery of qualified costs. |
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| 43 | 41 | | (b-2) For an application filed under Subsection (b-1), the |
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| 44 | 42 | | commission shall issue an order that determines the amount of |
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| 45 | 43 | | estimated and actual system restoration costs eligible for recovery |
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| 46 | 44 | | and securitization and a financing order that authorizes the |
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| 47 | 45 | | securitization of estimated and actual system restoration costs, |
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| 48 | 46 | | the issuance of system restoration bonds, and the creation of |
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| 49 | 47 | | system restoration charges for the recovery of qualified costs not |
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| 50 | 48 | | later than the 150th day after the date the application is filed. |
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| 51 | 49 | | (b-3) For an application filed under Subsection (b-1), the |
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| 52 | 50 | | estimated system restoration costs shall be subject to true-up and |
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| 53 | 51 | | reconciliation and system restoration charges shall be adjusted |
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| 54 | 52 | | after the actual system restoration costs are known. |
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| 55 | 53 | | SECTION 3. This Act takes effect immediately if it receives |
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| 56 | 54 | | a vote of two-thirds of all the members elected to each house, as |
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| 57 | 55 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 58 | 56 | | Act does not receive the vote necessary for immediate effect, this |
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| 59 | 57 | | Act takes effect September 1, 2025. |
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