By Turner of Harris                                   H.B. No. 3542
         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 the purposes for which the system benefit fund may be
 1-3     used.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Sections 39.903(e) and (f), Utilities Code, are
 1-6     amended to read as follows:
 1-7           (e)  The system benefit fund shall provide funding solely for
 1-8     the following regulatory purposes:
 1-9                 (1)  programs to assist low-income electric customers
1-10     provided by Subsections (f)-(l);
1-11                 (2)  customer education programs; [and]
1-12                 (3)  the school funding loss mechanism provided by
1-13     Section 39.901;
1-14                 (4)  administrative expenses incurred by the commission
1-15     in implementing and administering this chapter; and
1-16                 (5)  expenses incurred by the office under this
1-17     chapter.
1-18           (f)  Notwithstanding Section 39.106(b), the commission shall
1-19     adopt rules regarding programs to assist low-income electric
1-20     customers on the introduction of customer choice.  The programs may
1-21     not be targeted to areas served by municipally owned utilities or
1-22     electric cooperatives that have not adopted customer choice.  The
1-23     programs shall include:
 2-1                 (1)  reduced electric rates as provided by Subsections
 2-2     (h)-(l); [and]
 2-3                 (2)  targeted energy efficiency programs to be
 2-4     administered by the Texas Department of Housing and Community
 2-5     Affairs in coordination with existing weatherization programs; and
 2-6                 (3)  providing grants to energy assistance providers
 2-7     who assist low-income electric customers in paying their electric
 2-8     bills.
 2-9           SECTION 2.  This Act takes effect September 1, 2001.