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A BILL TO BE ENTITLED
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AN ACT
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relating to electricity service provided by certain municipally |
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owned utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 32, Utilities Code, is amended by adding |
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Subchapter D to read as follows: |
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SUBCHAPTER D. REVIEW OF RATES OF CERTAIN MUNICIPAL UTILITIES |
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Sec. 32.151. APPLICABILITY. This subchapter applies only |
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to a municipally owned utility that is governed directly by the |
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governing body of the municipality and is owned by a municipality |
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with a population of more than 750,000. |
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Sec. 32.152. REVIEW OF RATES; CUSTOMER CHOICE. (a) |
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Notwithstanding any other law, a retail customer or group of |
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customers may file a petition for commission review of current or |
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proposed rates of a municipally owned utility that apply to the |
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petitioning customer or group if the customer or group: |
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(1) has a non-demand metered total usage of more than |
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100,000 kilowatt hours per year; or |
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(2) is served through a demand meter at secondary or |
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primary voltage. |
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(b) The commission shall initiate a proceeding not later |
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than the 90th day after the petition is submitted to determine |
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whether the rates of the municipally owned utility are consistent |
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with the rates available to similarly situated customers in areas |
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of the state that have access to customer choice. If the commission |
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determines that the rates of the municipally owned utility are |
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consistent with the rates available to similarly situated customers |
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in areas of the state that have access to customer choice, the |
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commission shall deny the petition. |
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(c) If the commission does not deny the petition under |
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Subsection (b), not later than the 90th day after the date of the |
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determination described by Subsection (b), the municipally owned |
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utility shall file a rate application with the commission that |
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complies in all material respects with the rules and forms |
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prescribed by the commission. The commission for good cause may |
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extend the deadline for filing the rate application. |
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(d) The commission shall conduct a full review of the rates |
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applicable to the petitioning customer or group to determine |
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whether those rates are just and reasonable using the standards |
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prescribed by Chapter 36, notwithstanding the lack of consistency |
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between those rates and rates available to similarly situated |
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customers in areas of the state that have access to customer choice. |
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If the commission determines that the rates are just and |
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reasonable, the commission shall deny the petition. If the |
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commission determines that the rates are not just and reasonable, |
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the commission shall set rates for the petitioning customer or |
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group that are just, reasonable, and consistent with the rates |
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available to similarly situated customers in areas of the state |
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that have access to customer choice. |
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SECTION 2. Section 40.004, Utilities Code, is amended to |
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read as follows: |
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Sec. 40.004. JURISDICTION OF COMMISSION. Except as |
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specifically otherwise provided in this chapter, the commission has |
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jurisdiction over municipally owned utilities only for the |
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following purposes: |
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(1) to regulate wholesale transmission rates and |
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service, including terms of access, to the extent provided by |
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Subchapter A, Chapter 35; |
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(2) to regulate certification of retail service areas |
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to the extent provided by Chapter 37; |
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(3) to regulate rates: |
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(A) under Subchapter D, Chapter 32, subject to |
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Section 40.051(c); and |
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(B) on appeal under Subchapters D and E, Chapter |
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33, subject to Section 40.051(c); |
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(4) to establish a code of conduct as provided by |
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Section 39.157(e) applicable to anticompetitive activities and to |
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affiliate activities limited to structurally unbundled affiliates |
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of municipally owned utilities, subject to Section 40.054; |
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(5) to establish terms and conditions for open access |
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to transmission and distribution facilities for municipally owned |
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utilities providing customer choice, as provided by Section 39.203; |
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(6) to administer the renewable energy credits program |
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under Section 39.904(b) and the natural gas energy credits program |
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under Section 39.9044(b); |
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(7) to require reports of municipally owned utility |
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operations only to the extent necessary to: |
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(A) enable the commission to determine the |
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aggregate load and energy requirements of the state and the |
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resources available to serve that load; or |
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(B) enable the commission to determine |
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information relating to market power as provided by Section 39.155; |
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and |
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(8) to evaluate and monitor the cybersecurity |
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preparedness of a municipally owned utility described by Section |
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39.1516(a)(3) or (4). |
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SECTION 3. Section 40.051(c), Utilities Code, is amended to |
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read as follows: |
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(c) After a decision to offer customer choice has been made, |
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Subchapter D, Chapter 32, and Subchapters D and E, Chapter 33, do |
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not apply to any action taken under this chapter. |
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SECTION 4. Subchapter Z, Chapter 552, Local Government |
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Code, is amended by adding Section 552.915 to read as follows: |
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Sec. 552.915. PROHIBITION ON TRANSFER OF REVENUE. |
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Notwithstanding any other law, a municipality may not transfer to |
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the general fund of the municipality revenue from a municipally |
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owned utility that is subject to an order issued by the Public |
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Utility Commission of Texas under Section 32.152(d), Utilities |
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Code, that sets the utility's rates. |
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SECTION 5. This Act takes effect September 1, 2023. |