Amend HB 2107 by striking all below the enacting clause and
substituting the following:
      SECTION 1. Section 39.052(c), Utilities Code is amended to
read as follows:
      (c)  Notwithstanding any other provision of this title,
during the freeze period the regulatory authority may not reduce
the retail base rates of an electric utility, except as may be
ordered as stipulated to by an electric utility in a proceeding for
which a final order had not been issued by January 1, 1999. A
credit ordered in accordance with Section 39.201(f) is not a
reduction to retail base rates.
      SECTION 2. Section 39.201, Utilities Code, is amended by
amending Subsection (f) and adding Subsection (m) to read as
follows:
      (f)  The expected competition transition charge shall be that
as determined under Subsections (g) and (h) and as implemented
under Subsections (i)-(l). If at any time before June 15, 2001, the
commission determines that an electric utility that is subject to
Section 39.254 does not have positive stranded costs based on a
computation under Subsection (h), the Commission shall order that
mitigation attributable to positive differences identified under
Section 39.257, not including estimates of positive differences for
calendar year 2001, and mitigation attributable to excess earnings
identified in accordance with transition plans approved by the
Commission be applied as follows:
            (1)  50 percent of the amount allocable to residential
customers, according to a methodology determined by the commission,
shall be applied as a nonbypassable credit to the electric utilty's
residential customers in calendar year 2001 as ordered by the
commission;
            (2)  Remaining excess earnings allocable to residential
customers, including estimated positive differences for calendar
year 2001, according to a methodology determined by the commission,
shall be applied as a credit against transmission and distribution
charges for residential customers over 5 years beginning January 1,
2002; and
            (3)  the amount allocable to non-residential customer
classes,according to a methodology determined by the commission,
shall be applied as a credit against transmission and distribution
charges for non-residential customers over 5 years beginning
January 1, 2002.
      SECTION 3. Section 39.254, Utilities Code, is amended to read
as follows:
      Sec. 39.254.  USE OF REVENUES FOR UTILITIES WITH STRANDED
COSTS. This subchapter provides a number of tools to an electric
utility to mitigate stranded costs. Each electric utility that was
reported by the commission to have positive "excess costs over
market" (ECOM), denoted as the "base case" for the amount of
stranded costs before full retail competition in 2002 with respect
to its Texas jurisdiction, in the April 1998 Report to the Texas
Senate Interim Committee on Electric Utility Restructuring entitled
"Potentially Strandeable Investment (ECOM) Report:  1998 Update,"
must use these tools to reduce the net book value of, otherwise
referred to as "accelerate" the cost recovery of, its stranded
costs each year. Any positive difference under the report required
by Section 39.257(b) shall be applied to the net book value of
generation assets, except that if Section 39.201(f) applies, the
positive differences shall be applied as ordered by the commission.
      SECTION 4. (a)  This Act takes effect immediately if it
receives a vote of two-thirds of all members elected to each house,
as provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect,this
Act takes effect September 1, 2001.
      (b)  Notwithstanding Section 39.201(f)(1), Utilities Code, as
added by this Act, if this Act is given immediate effect, the
Public Utility Commission of Texas shall ensure that electric
utilities to which  that section applies apply the credits to
customers' bills for consumption in August 2001, to the extent
possible.