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.