Amend the amendment to HB 2107 by striking the entirety of
the amendment after page 1, line 2 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(d) is not a
reduction to retail base rates."
      SECTION 2.  Section 39.201, Utilities Code, is amended by
amending Subsection (d) and adding Subsection (m) to read as
follows:
      "(d)  In accordance with a schedule and procedures it
establishes, the commission shall hold a hearing and approve or
modify and make effective as of January 1, 2002, the transmission
and distribution utility's proposed tariffs for transmission and
distribution services, the system benefit fund fee, and the
expected competition transition charge as determined under
Subsections (g) and (h) and as implemented under Subsections
(i)-(1), if any.  If the commission determines that an electric
utility that is subject to Section 39.254 and that has a service
area exclusively located within the Electric Reliability Council of
Texas 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, excluding estimates of positive differences for calendar
year 2001, and including mitigation attributable to excess earnings
identified in accordance with transition plans approved by the
commission be applied such that 50 percent of such amounts
allocable to residential customers, according to a methodology
determined by the commission, shall be applied as a nonbypassable
credit to the electric utility's residential customers in September
2001 as ordered by the commission.
      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 Strandable 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(d) applies, the
positive differences shall be applied as ordered by the
commission."
      SECTION 4.  This Act takes effect September 1, 2001.