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A BILL TO BE ENTITLED
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AN ACT
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relating to money used in and the continuation of the system benefit |
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fund |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sec. 39.903. SYSTEM BENEFIT FUND. |
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(a) The system benefit fund is an account in the general |
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revenue fund. Money in the account may be appropriated only for the |
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purposes provided by this section or other law. Interest earned on |
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the system benefit fund shall be credited to the fund. Section |
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403.095, Government Code, does not apply to the system benefit |
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fund. |
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(b) The system benefit fund is financed by a nonbypassable |
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fee set by the commission in an amount not to exceed 65 cents per |
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megawatt hour and by appropriated funds. The system benefit fund |
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fee is allocated to customers based on the amount of kilowatt hours |
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used. |
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(c) The nonbypassable fee may not be imposed on the retail |
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electric customers of a municipally owned utility or electric |
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cooperative before the sixth month preceding the date on which the |
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utility or cooperative implements customer choice. Money |
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distributed from the system benefit fund to a municipally owned |
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utility or an electric cooperative shall be proportional to the |
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nonbypassable fee paid by the municipally owned utility or the |
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electric cooperative, subject to the reimbursement provided by |
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Subsection (i). On request by a municipally owned utility or |
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electric cooperative, the commission shall reduce the |
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nonbypassable fee imposed on retail electric customers served by |
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the municipally owned utility or electric cooperative by an amount |
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equal to the amount provided by the municipally owned utility or |
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electric cooperative or its ratepayers for local low-income |
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programs and local programs that educate customers about the retail |
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electric market in a neutral and nonpromotional manner. |
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(d) The commission shall annually review and approve system |
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benefit fund accounts, projected revenue requirements, and |
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proposed nonbypassable fees. |
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(e) Money in the system benefit fund may be appropriated to |
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provide funding solely for the following regulatory purposes, in |
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the following order of priority: |
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(1) programs to: |
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(A) provide bill payment assistance to |
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low-income electric customers who during the time of a declared |
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disaster that occurred in year 2021 or after and had an indexed |
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plan, or a variable rate plan, and have been impacted by high energy |
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bills as a result of the declared natural disaster; and |
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[(A)] (B) assist low-income electric customers |
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by providing the 10 percent reduced rate prescribed by Subsection |
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(h); and |
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[(B)] (C) provide one-time bill payment |
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assistance to electric customers who are or who have in their |
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households one or more seriously ill or disabled low-income persons |
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and who have been threatened with disconnection for nonpayment; |
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(2) customer education programs, administrative |
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expenses incurred by the commission in implementing and |
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administering this chapter, and expenses incurred by the office |
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under this chapter; |
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(3) programs to assist low-income electric customers |
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by providing the targeted energy efficiency programs described by |
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Subsection (f)(2); |
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(4) programs to assist low-income electric customers |
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by providing the 20 percent reduced rate prescribed by Subsection |
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(h); and |
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(5) reimbursement to the commission and the Health and |
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Human Services Commission for expenses incurred in the |
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implementation and administration of an integrated eligibility |
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process created under Section 17.007 for customer service discounts |
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relating to retail electric service, including outreach expenses |
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the commission determines are reasonable and necessary. |
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(f) Notwithstanding Section 39.106(b), the commission shall |
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adopt rules regarding programs to assist low-income electric |
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customers on the introduction of customer choice. The programs may |
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not be targeted to areas served by municipally owned utilities or |
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electric cooperatives that have not adopted customer choice. The |
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programs shall include: |
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(1) reduced electric rates as provided by Subsections |
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(h)-(l); and |
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(2) targeted energy efficiency programs to be |
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administered by the Texas Department of Housing and Community |
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Affairs in coordination with existing weatherization programs. |
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(g) Until customer choice is introduced in a power region, |
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an electric utility may not reduce, in any manner, programs already |
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offered to assist low-income electric customers. |
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(h) The commission shall adopt rules for a retail electric |
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provider to determine a reduced rate for eligible customers to be |
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discounted off the standard retail service package as approved by |
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the commission under Section 39.106, or the price to beat |
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established by Section 39.202, whichever is lower. Municipally |
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owned utilities and electric cooperatives shall establish a reduced |
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rate for eligible customers to be discounted off the standard |
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retail service package established under Section 40.053 or 41.053, |
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as appropriate. The reduced rate for a retail electric provider |
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shall result in a total charge that is at least 10 percent and, if |
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sufficient money in the system benefit fund is available, up to 20 |
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percent, lower than the amount the customer would otherwise be |
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charged. To the extent the system benefit fund is insufficient to |
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fund the initial 10 percent rate reduction, the commission may |
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increase the fee to an amount not more than 65 cents per megawatt |
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hour, as provided by Subsection (b). If the fee is set at 65 cents |
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per megawatt hour or if the commission determines that |
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appropriations are insufficient to fund the 10 percent rate |
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reduction, the commission may reduce the rate reduction to less |
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than 10 percent. For a municipally owned utility or electric |
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cooperative, the reduced rate shall be equal to an amount that can |
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be fully funded by that portion of the nonbypassable fee proceeds |
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paid by the municipally owned utility or electric cooperative that |
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is allocated to the utility or cooperative by the commission under |
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Subsection (e) for programs for low-income customers of the utility |
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or cooperative. The reduced rate for municipally owned utilities |
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and electric cooperatives under this section is in addition to any |
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rate reduction that may result from local programs for low-income |
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customers of the municipally owned utilities or electric |
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cooperatives. |
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(i) A retail electric provider, municipally owned utility, |
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or electric cooperative seeking reimbursement from the system |
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benefit fund may not charge an eligible low-income customer a rate |
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higher than the appropriate rate determined under Subsection (h). A |
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retail electric provider not subject to the price to beat, or a |
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municipally owned utility or electric cooperative subject to the |
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nonbypassable fee under Subsection (c), shall be reimbursed from |
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the system benefit fund for the difference between the reduced rate |
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and the rate established under Section 39.106 or, as appropriate, |
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the rate established under Section 40.053 or 41.053. A retail |
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electric provider who is subject to the price to beat shall be |
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reimbursed from the system benefit fund for the difference between |
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the reduced rate and the price to beat. The commission shall adopt |
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rules providing for the reimbursement. |
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(j) The commission shall adopt rules providing for methods |
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of enrolling customers eligible to receive reduced rates under |
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Subsection (h). The rules must provide for automatic enrollment as |
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one enrollment option. The Texas Department of Human Services, on |
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request of the commission, shall assist in the adoption and |
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implementation of these rules. The commission and the Texas |
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Department of Human Services shall enter into a memorandum of |
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understanding establishing the respective duties of the commission |
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and the department in relation to the automatic enrollment. |
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(j-1) The commission shall adopt rules governing the bill |
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payment assistance program provided under Subsection (e)(1)(B). |
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The rules must provide that a customer is eligible to receive the |
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assistance only if the assistance is necessary to prevent the |
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disconnection of service for nonpayment of bills and the electric |
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customer is or has in the customer's household one or more seriously |
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ill or disabled low-income persons whose health or safety may be |
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injured by the disconnection. The commission may prescribe the |
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documentation necessary to demonstrate eligibility for the |
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assistance and may establish additional eligibility criteria. The |
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Health and Human Services Commission, on request of the commission, |
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shall assist in the adoption and implementation of these rules. |
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(k) A retail electric provider is prohibited from charging |
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the customer a fee for participation in the reduced rate program. |
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(l) For the purposes of this section, a "low-income electric |
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customer" is an electric customer: |
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(1) whose household income is not more than 125 |
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percent of the federal poverty guidelines; or |
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(2) who receives food stamps from the Texas Department |
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of Human Services or medical assistance from a state agency |
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administering a part of the medical assistance program. |
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(m) This section expires September 1, 2024 [2017]. |