Floor Packet Page No. 139
      Amend CSHB 4 by adding  the following appropriately numbered
sections to Article 2 and by renumbering the other sections in
Article 2 accordingly:
      SECTION 2.____.  Subtitle E, Title II, Public Utility
Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
Statutes), is amended by adding Section 2.2125 to read as follows:
      Sec. 2.2125.  ADJUSTMENT FOR DECREASES IN AD VALOREM TAX
LIABILITY.  (a)  The commission, on its own motion or on the
petition of an electric utility, shall provide for the adjustment
of the utility's billing to reflect a decrease in the utility's ad
valorem tax liability if the decrease:
            (1)  results from CSHB 4, Acts of the 75th Legislature,
1997; and
            (2)  is attributable to an activity subject to the
commission's jurisdiction.
      (b)  The commission shall apportion pro rata to each type and
class of service provided by the utility and billing adjustment
under this section. The adjustment, if required:
            (1)  shall be made effective January 31, 1998; and
            (2)  remains effective only until the commission alters
the adjustment as provided by this section or enters an order for
the utility under Section 2.211 or 2.212 of this Act.
      (c)  Each year after an original adjustment, the commission
shall:
            (1)  review the utility's decrease of tax liability
described by Subsection (a)(1) of this section; and
            (2)  alter the adjustment as necessary to reflect any
additional decrease.
      (d)  A proceeding under this section is not a rate case under
Section 2.212 of this Act.
      SECTION 2.____.  Subtitle E, Title III, Public Utility
Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
Statutes), is amended by adding Section 3.2115 to read as follows:
      Sec. 3.2115.  ADJUSTMENT FOR DECREASE IN AD VALOREM TAX
LIABILITY.  (a)  The commission, on its own motion or on the
petition of a utility, shall provide for the adjustment of the
utility's billing to reflect a decrease in the utility's ad valorem
tax liability if the decrease:
            (1)  results from CSHB 4, Acts of the 75th Legislature,
1997; and
            (2)  is attributable to an activity subject to the
commission's jurisdiction.
      (b)  The commission shall apportion pro rata to each type and
class of service provided by the utility any billing adjustment
under this section. The adjustment, if required:
            (1)  shall be made effective January 31, 1998; and
            (2)  remains effective only until the commission alters
the adjustment as provided by this section or enters an order for
the utility under Section 3.210 or 3.211 of this Act.
      (c)  Each year after an original adjustment, the commission
shall:
            (1)  review the utility's decrease of tax liability
described by Subsection (a)(1) of this section; and
            (2)  alter the adjustment as necessary to reflect any
additional decrease.
      (d)  A proceeding under this section is not a rate case under
Section 3.211 of this Act.