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.