74R11455 CBH-D
By Craddick H.B. No. 1715
Substitute the following for H.B. No. 1715:
By Holzheauser C.S.H.B. No. 1715
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the determination of electric prices for certain
1-3 customers, including operators of marginal wells.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 1.003(14), Public Utility Regulatory Act
1-6 of 1995, as enacted by S.B. No. 319, Acts of the 74th Legislature,
1-7 Regular Session, 1995, is amended to read as follows:
1-8 (14) "Rate" means and includes every compensation,
1-9 tariff, charge, fare, toll, rental, and classification, or any of
1-10 them demanded, observed, charged, or collected whether directly or
1-11 indirectly by any public utility for any service, product, or
1-12 commodity described in the definition of "utility" in Section 2.001
1-13 or 3.001 of this Act and any rules, regulations, practices, or
1-14 contracts affecting any such compensation, tariff, charge, fare,
1-15 toll, rental, or classification that must be approved by a
1-16 regulatory authority. The term does not include a price, as
1-17 defined by Section 2.001 of this Act, that is charged to individual
1-18 customers for electric service.
1-19 SECTION 2. Section 2.001, Public Utility Regulatory Act of
1-20 1995, as enacted by S.B. 319, Acts of the 74th Legislature, Regular
1-21 Session, 1995, is amended to read as follows:
1-22 Sec. 2.001. DEFINITIONS. In this title:
1-23 (1) "Public<, "public> utility" or "utility" means any
1-24 person, corporation, river authority, cooperative corporation, or
2-1 any combination thereof, other than a municipal corporation, or
2-2 their lessees, trustees, and receivers, now or hereafter owning or
2-3 operating for compensation in this state equipment or facilities
2-4 for producing, generating, transmitting, distributing, selling, or
2-5 furnishing electricity (hereinafter "electric utility"); provided,
2-6 however, that this definition may not be construed to apply to or
2-7 include a qualifying small power producer or qualifying
2-8 cogenerator, as defined in Sections 3(17)(D) and 3(18)(C) of the
2-9 Federal Power Act, as amended (16 U.S.C. Sections 796(17)(D) and
2-10 796(18)(C)). The term does not include any person or corporation
2-11 not otherwise a public utility that:
2-12 (A) <(1)> furnishes the services or commodity
2-13 described in this section only to itself, its employees, or its
2-14 tenants as an incident of such employee service or tenancy, when
2-15 such service or commodity is not resold to or used by others;
2-16 (B) <(2)> owns or operates in this state
2-17 equipment or facilities for producing, generating, transmitting,
2-18 distributing, selling, or furnishing electric energy to an electric
2-19 utility, if the equipment or facilities are used primarily for the
2-20 production and generation of electric energy for consumption by the
2-21 person or corporation; or
2-22 (C) <(3)> owns or operates in this state a
2-23 recreational vehicle park that provides metered electric service in
2-24 accordance with Article 1446d-2, Revised Statutes, provided that a
2-25 recreational vehicle park owner is considered a public utility if
2-26 the owner fails to comply with Article 1446d-2, Revised Statutes,
2-27 with regard to the metered sale of electricity at the recreational
3-1 vehicle park.
3-2 (2) "Price" means a charge to a customer for retail
3-3 electric service that is at or lower than a rate approved by a
3-4 regulatory authority.
3-5 SECTION 3. Subtitle D, Title II, Public Utility Regulatory
3-6 Act of 1995, as enacted by S.B. No. 319, Acts of the 74th
3-7 Legislature, Regular Session, 1995, is amended by adding Section
3-8 2.1512 to read as follows:
3-9 Sec. 2.1512. PRICE RANGE. (a) The retail rates of an
3-10 electric utility shall be approved by the regulatory authority in
3-11 accordance with the principles of this Act to assure that the rates
3-12 are just and reasonable. At the option of an electric utility, the
3-13 utility may charge individual customers for retail electric service
3-14 at a price that is lower than the rate approved by a regulatory
3-15 authority but equal to or greater than a minimum price determined
3-16 under this section if:
3-17 (1) the electric utility files notice of its minimum
3-18 price corresponding to each customer classification with the
3-19 commission and revises the notice on approval of a change in rates
3-20 by the regulatory authority;
3-21 (2) the minimum price is equal to the approved rate
3-22 less 30 percent of the demand-related cost included in the rate, as
3-23 determined from the utility's most recently approved cost of
3-24 service study, except that the utility may not charge a price in
3-25 excess of the applicable rate approved by the regulatory authority;
3-26 (3) a price offered by the electric utility is
3-27 applicable to service to:
4-1 (A) an existing customer, which is a customer
4-2 that is connected to and has taken service from the utility
4-3 continuously for the previous 36 months at the service location for
4-4 which the price is applicable; and
4-5 (B) a new customer, which is a customer
4-6 requesting service at any new delivery point;
4-7 (4) the price is offered only to a customer for which
4-8 the service location and all consuming facilities on the location
4-9 are within the area for which the utility holds a certificate of
4-10 public convenience and necessity to provide retail electric utility
4-11 service; and
4-12 (5) the customer demonstrates to the utility that:
4-13 (A) without the offered price, it will cease
4-14 receiving service from the utility or reduce its load as a result
4-15 of switching to alternative energy sources, switching to service by
4-16 another electric utility, self-generation, cogeneration,
4-17 relocation, closure, or shutdown; or
4-18 (B) a price that is lower than an approved rate
4-19 will extend the economic life of a well or group of wells and
4-20 related facilities, located within the service area of a utility
4-21 and served by one meter of the utility, that produced on average
4-22 either:
4-23 (i) 15 barrels of oil equivalent or less
4-24 per well per day during the preceding 12 months based on the
4-25 records of the Railroad Commission of Texas;
4-26 (ii) 25 barrels of oil equivalent or less
4-27 per well per day and the average water cut is equal to or greater
5-1 than 95 percent during the preceding 12 months based on the records
5-2 of the Railroad Commission of Texas; or
5-3 (iii) any enhanced oil recovery project as
5-4 defined by Chapter 202, Tax Code.
5-5 (b) An electric utility may not under this section offer,
5-6 demand, charge, or receive a price less than the minimum price for
5-7 the applicable customer class.
5-8 (c) If an electric utility charges a price that is lower
5-9 than the rate approved by a regulatory authority it shall submit to
5-10 the regulatory authority:
5-11 (1) the customer contract including the name and
5-12 address of the customer;
5-13 (2) documentation demonstrating that the price is
5-14 within the range of prices allowed under this section;
5-15 (3) the approved rate that would be applicable in the
5-16 absence of the lower price;
5-17 (4) whether the customer is a new or existing
5-18 customer;
5-19 (5) if the customer is an existing customer, the
5-20 number of months the customer has been continuously connected to
5-21 and served by the utility at the service location for which the
5-22 price is applicable; and
5-23 (6) sworn affidavits stating each of the particular
5-24 facts within the affiant's personal knowledge necessary to
5-25 establish that the customer qualifies for the price and that the
5-26 price meets the criteria of this section.
5-27 (d) The commission has exclusive original jurisdiction to
6-1 review any price charged by an electric utility under this section.
6-2 On complaint by an affected person, including a competing utility,
6-3 the commission shall determine compliance with this section,
6-4 including whether the price is within the range of prices allowed
6-5 and the eligibility of the customer for the price. If the
6-6 commission determines that a price charged by an electric utility
6-7 is inconsistent with this section, the commission may disallow the
6-8 price.
6-9 (e) Notwithstanding any other provision of this section, a
6-10 utility may not offer a price to a customer located in a
6-11 multi-certificated service area that is lower than the lowest
6-12 approved rate of any utility serving the multi-certificated area.
6-13 (f) This section does not limit the authority of the
6-14 regulatory authority to change the rates of or establish new rates
6-15 for electric utilities as provided by other provisions of this Act.
6-16 This section does not affect the validity of any lawful rate
6-17 previously set by a regulatory authority.
6-18 (g) An electric utility may also charge wholesale customers
6-19 for wholesale electric service at a price that is lower than the
6-20 rate approved by the regulatory authority if the price:
6-21 (1) applies only to that portion of the customer's
6-22 retail load for which the retail price is determined under
6-23 Subsection (a) of this section;
6-24 (2) is not less than the utility's marginal cost for
6-25 that portion of the customer's retail load for which the retail
6-26 price is determined under Subsection (a) of this section; and
6-27 (3) is not discounted by more than 10 percent of the
7-1 customer's average-demand-related cost for that portion of the
7-2 customer's retail load for which the retail price is determined
7-3 under Subsection (a) of this section.
7-4 SECTION 4. Section 2.154(b), Public Utility Regulatory Act
7-5 of 1995, as enacted by S.B. No. 319, Acts of the 74th Legislature,
7-6 Regular Session, 1995, is amended to read as follows:
7-7 (b) Every public utility shall file with, and as a part of
7-8 such schedules, all rules and regulations relating to or affecting
7-9 the rates, public utility service, product, or commodity furnished
7-10 by such utility. Prices being charged to individual customers for
7-11 electric service are not required to be filed with the regulatory
7-12 authority. The regulatory authority shall consider any price to an
7-13 individual customer filed with it to be a trade secret and shall
7-14 prevent disclosure of the information. That information is not
7-15 subject to disclosure under Chapter 552, Government Code.
7-16 SECTION 5. Section 2.202, Public Utility Regulatory Act of
7-17 1995, as enacted by S.B. No. 319, Acts of the 74th Legislature,
7-18 Regular Session, 1995, is amended to read as follows:
7-19 Sec. 2.202. JUST AND REASONABLE RATES. It shall be the duty
7-20 of the regulatory authority to insure that every rate made,
7-21 demanded, or received by any public utility or by any two or more
7-22 public utilities jointly shall be just and reasonable. Rates
7-23 approved by the regulatory authority may not be unreasonably
7-24 preferential, prejudicial, or discriminatory, but shall be
7-25 sufficient, equitable, and consistent in application to each class
7-26 of consumers. Prices charged to individual customers for electric
7-27 service may not be higher than the rate approved by the regulatory
8-1 authority. For ratemaking purposes, the commission may treat two
8-2 or more municipalities served by a public utility as a single class
8-3 wherever it deems such treatment to be appropriate.
8-4 SECTION 6. Section 2.214, Public Utility Regulatory Act of
8-5 1995, as enacted by S.B. No. 319, Acts of the 74th Legislature,
8-6 Regular Session, 1995, is amended to read as follows:
8-7 Sec. 2.214. UNREASONABLE PREFERENCE OR PREJUDICE AS TO RATES
8-8 OR SERVICES. A public utility may not, as to rates or services,
8-9 make or grant any unreasonable preference or advantage to any
8-10 corporation or person within any classification or subject any
8-11 corporation or person within any classification to any unreasonable
8-12 prejudice or disadvantage. A public utility may not establish and
8-13 maintain any unreasonable differences as to rates of service either
8-14 as between localities or as between classes of service. Prices
8-15 charged to individual customers for electric service that are less
8-16 than the rate approved by the regulatory authority are not an
8-17 impermissible difference, preference, or advantage.
8-18 SECTION 7. Section 2.215(a), Public Utility Regulatory Act
8-19 of 1995, as enacted by S.B. No. 319, Acts of the 74th Legislature,
8-20 Regular Session, 1995, is amended to read as follows:
8-21 (a) A public utility may not, directly or indirectly, by any
8-22 device whatsoever or in any manner, charge, demand, collect, or
8-23 receive from any person a greater <or less> compensation for any
8-24 service rendered or to be rendered by the utility than that
8-25 prescribed in the schedule of rates of the public utility
8-26 applicable thereto when filed in the manner provided in this Act,
8-27 nor may any person knowingly receive or accept any service from a
9-1 public utility for a compensation greater <or less> than that
9-2 prescribed in the schedules. A utility may charge individual
9-3 customers a price for electric service that is less than the rate
9-4 approved by the regulatory authority and a person may pay such a
9-5 lesser price as authorized by this Act.
9-6 SECTION 8. This Act takes effect September 1, 1995.
9-7 SECTION 9. The importance of this legislation and the
9-8 crowded condition of the calendars in both houses create an
9-9 emergency and an imperative public necessity that the
9-10 constitutional rule requiring bills to be read on three several
9-11 days in each house be suspended, and this rule is hereby suspended.