| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the consideration of the proportion of long-term debt |
|
|
and equity capitalization in establishing the rates of electric |
|
|
utilities. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter B, Chapter 36, Utilities Code, is |
|
|
amended by adding Section 36.067 to read as follows: |
|
|
Sec. 36.067. CONSIDERATION OF PROPORTION OF LONG-TERM DEBT |
|
|
AND EQUITY CAPITALIZATION. (a) Except as provided by Subsection |
|
|
(b), when establishing an electric utility's rates, the regulatory |
|
|
authority shall calculate the return on invested capital using the |
|
|
utility's actual proportion of long-term debt and equity |
|
|
capitalization as reported on the utility's most recent financial |
|
|
statement issued before the initiation of the applicable rate |
|
|
proceeding. |
|
|
(b) If the electric utility's actual proportion of equity |
|
|
capitalization exceeds 60 percent, the regulatory authority shall |
|
|
calculate the return on invested capital using an equity |
|
|
capitalization of 60 percent. |
|
|
SECTION 2. (a) Section 36.067, Utilities Code, as added by |
|
|
this Act, applies only to a proceeding for the establishment of |
|
|
rates for which the regulatory authority has not issued a final |
|
|
order or decision before the effective date of this Act. |
|
|
(b) A proceeding for which the regulatory authority has |
|
|
issued a final order or decision before the effective date of this |
|
|
Act is governed by the law in effect immediately before that date, |
|
|
and that law is continued in effect for that purpose. |
|
|
SECTION 3. This Act takes effect immediately if it receives |
|
|
a vote of two-thirds of all the members elected to each house, as |
|
|
provided by Section 39, Article III, Texas Constitution. If this |
|
|
Act does not receive the vote necessary for immediate effect, this |
|
|
Act takes effect September 1, 2023. |