By Longoria                                           H.B. No. 3734
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     Relating to affordable electricity and energy efficiency programs
 1-3     for low-income customers.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subtitle B, Title 2, Utilities Code, is amended
 1-6     by adding Chapter 39 to read as follows:
 1-7                 CHAPTER 39. AFFORDABLE ELECTRICITY PROGRAMS
 1-8           Sec. 39.001.  DEFINITION.  In this chapter, "low-income
 1-9     customer" means a customer of an electric utility eligible to
1-10     receive benefits under federal and state funded income tested
1-11     programs administered by the Texas Department of Human Services and
1-12     federal and state funded programs administered by the Texas
1-13     Department of Housing and Community Affairs.
1-14           Sec. 39.002.  ESTABLISHMENT OF PROGRAM.  The commission shall
1-15     develop affordable electricity and energy efficiency programs for
1-16     low-income customers that include:
1-17                 (1)  discounted rates as provided by Section 39.003 or
1-18     aggregation projects as provided by Section 39.004; and
1-19                 (2)  financing of targeted energy efficiency programs
1-20     coordinated to the maximum extent feasible with the federally
1-21     funded weatherization and other low-income energy efficiency
 2-1     programs administered by the Texas Department of Housing and
 2-2     Community Affairs.
 2-3           Sec 39.003  AFFORDABLE ELECTRICITY.  (a)  Except as provided
 2-4     by Section 39.004, the commission by rule shall require an electric
 2-5     utility to file a tariff that includes a reduced rate for electric
 2-6     service provided to low-income customers. The tariff:
 2-7                 (1)  may concern the implementation of this chapter
 2-8     only;
 2-9                 (2)  is not a rate change under Subchapter C, Chapter
2-10     36; and
2-11                 (3)  does not affect the utility's other rates or
2-12     services.
2-13           (b)  The reduced rate required by this section must be
2-14     approximately 20 percent lower than the rate that the customer
2-15     would otherwise be charged, and must apply to the amount of
2-16     electricity the commission determines is sufficient to provide
2-17     necessary lighting, refrigeration, heating, and cooling for the
2-18     customer.
2-19           (c)  The reduced rate may not vary by time of day or season,
2-20     except that the commission may increase the amount of the
2-21     reduction:
2-22                 (1)  during periods when severe weather occurs or is
2-23     likely to occur; or
2-24                 (2)  for customers living in all-electric dwelling
2-25     units or who depend on electrically-operated medical equipment.
 3-1           (d)  The utility may not charge a customer a fee for
 3-2     participation in the reduced rate program and shall offer each
 3-3     low-income customer a levelized payment plan.
 3-4           (e)  The Texas Department of Human Services shall provide
 3-5     automatic enrollment in the reduced rate program for each
 3-6     low-income customer who receives benefits under federal and state
 3-7     funded income tested programs administered by the Texas Department
 3-8     of Human Services. An alternative procedure for establishing
 3-9     eligibility shall be implemented for income eligible customers that
3-10     do not currently receive benefits through a program administered
3-11     through the Texas Department of Human Services.
3-12           Sec. 39.004.  AGGREGATION PROJECTS.  (a)  If otherwise
3-13     permitted by law, the commission may establish pilot projects to
3-14     provide for the aggregation of the acquisition of electricity by
3-15     low-income customers. The projects may include acquisition of
3-16     electricity for low-income customers by the General Services
3-17     Commission as part of an aggregated acquisition of electricity for
3-18     state agencies. The General Services Commission shall cooperate
3-19     with the commission in carrying out programs under this section.
3-20           (b)  If the commission determines that aggregation will
3-21     provide an equivalent or greater level of discount and service as
3-22     the affordable electricity program under Section 39.003, the
3-23     commission by the rule may continue the aggregation programs and
3-24     discontinue the affordable electricity program.
3-25           Sec. 39.005.  FUNDING.  (a)  Each electric utility shall pay
 4-1     an annual assessment in the amount determined by the commission to
 4-2     be necessary to fund the activities specified by Subsection(b), but
 4-3     not more than one mill for each kilowatt hour sold by the utility
 4-4     to retail customers in this state.
 4-5           (b)  The assessment under this section must be collected by
 4-6     the comptroller and deposited to the credit  of the affordable
 4-7     electricity account. The affordable electricity account is an
 4-8     account in the general revenue fund that may be appropriated only
 4-9     to:
4-10                 (1)  reimburse electric utilities, in amounts and by
4-11     the method determined by the commission, for providing reduced
4-12     rates under Section 39.003; and
4-13                 (2)  fund targeted energy efficiency programs provided
4-14     under Section 39.002 in an amount which represents a minimum of
4-15     fifteen percent of the assessment collected by the comptroller.
4-16           (c)  The comptroller may require an electric utility to
4-17     provide any report or information necessary to fulfill the
4-18     comptroller's duties under this section.
4-19           SECTION 2.  This Act takes effect September 1, 1999.
4-20           SECTION 3.  The importance of this legislation and the
4-21     crowded condition of the calendars in both houses create an
4-22     emergency and an imperative public necessity that the
4-23     constitutional rule requiring bills to be read on three several
4-24     days in each house be suspended, and this rule is hereby suspended.