Floor Packet Page No. 68
      Amend CSSB 7 in Subchapter Z, Chapter 39, Utilities Code, as
added by SECTION 40 of the bill (House committee report page 153,
between lines 16 and 17) by adding a new Section 39.909 to read as
follows:
      Sec. 39.909. RURAL UNIVERSAL SERVICE FUND. (a) The commission
shall adopt rules consistent with this section to establish a rural
universal service fund to provide monthly payments during the
transition to retail customer choice that will ensure that rural
consumers have equal access to competitively priced electric energy
and to offset high distribution costs in rural areas. The fund
shall be established not later than January 1, 2000.
      (b)  The fund shall be funded by a charge of 15 cents per
megawatt hour, assessed at the generator, for all non-cooperative
and municipal generation sold in this state.
      (c)  The commission shall determine the eligibility criteria
and methods for the allocation of the total available funds to
rural electric cooperatives participating in the fund. Eligibility
and allocations shall be based on a retail electric utility's
distribution costs or density of its customers or sales.
      (d)  An electric cooperative receiving payments from the fund
shall use the money to reduce its distribution plant balances or
for other purposes to achieve a long-term reduction to its cost of
providing distribution service. The commission may not impose
restrictions on eligibility or use of money from the fund except as
provided by this section.
      (e)  During 2010 the commission shall assess the need for the
fund and report the results of this assessment to the legislature
before February 1, 2011.