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House Bill 1520 |
House Author: Paddie et al. |
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Effective: 6-16-21 |
Senate Sponsor: Hancock |
House Bill 1520 amends the Gas Utility Regulatory Act, Utilities Code, and the Texas Public Finance Authority Act, Government Code, to provide for the issuance of customer rate relief bonds relating to Winter Storm Uri. The purpose of these provisions is to reduce the cost that customers would otherwise experience because of extraordinary costs that gas utilities incurred to secure gas supply and provide service during the storm, and to restore gas utility systems after the storm, by providing securitization financing for gas utilities to recover those costs. This securitization financing mechanism will provide rate relief to customers by extending the period during which the costs are recovered from customers and will support the financial strength and stability of gas utility companies. Among other provisions, the bill does the following:
· provides for the determination by the Railroad Commission of Texas (RRC), on application by a gas utility, of the regulatory asset amount to be recovered by the utility;
· authorizes the RRC to request the Texas Public Finance Authority to direct an issuing financing entity to issue customer rate relief bonds after the following actions:
o the final resolution of all the applications requesting the regulatory asset determination;
o a determination by the RRC that customer rate relief bond financing for extraordinary costs is the most cost‑effective method of funding regulatory asset reimbursements to be made to gas utilities; and
o the issuance by the RRC of an applicable financing order;
· establishes that customer rate relief bonds are the limited obligation solely of the issuing financing entity and are not a debt of a gas utility or a debt or a pledge of the faith and credit of the state or any political subdivision of the state; and
· requires uniform monthly volumetric customer rate relief charges, as long as any customer rate relief bonds or related financing costs remain outstanding, to be paid by all current and future customers that receive service from a gas utility for which a regulatory asset determination has been made.