By:  Barrientos                                                   S.B. No. 1792


A BILL TO BE ENTITLED

AN ACT

relating to the price to beat fuel factor adjustment.                         
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 39.202(k), Utilities Code, is amended to 
read as follows:
	(k)  Following the true-up proceedings conducted under 
Section 39.262, the commission may adjust the price to beat to 
reflect the credit devised under Section 39.262(e).
	SECTION 2.  Section 389.202(l), Utilities Code, is amended 
to read as follows:
	(l)  The commission may not adjust the fuel factor 
established under Subsection (b) except pursuant to the following 
circumstances:
		(1)  An an affiliated retail electric provider may 
request that the commission adjust increase the fuel factor 
established under Subsection (b) not more than twice a year if the 
affiliated retail electric provider demonstrates that the existing 
fuel factor does not adequately reflect significant changes in the 
market price of natural gas and purchased energy used to serve 
retail customers; or
		(2)  an affiliated retail electric provided, a 
regulatory authority under Chapter 33, the Office of Public Utility 
Counsel, or the Commission may request that the existing fuel 
factor be decreased if the requesting party demonstrates that the 
existing fuel factor does not adequately reflect significant 
changes in the market price of natural gas and purchased energy used 
to serve retail customers.
	SECTION 3.  EFFECTIVE DATE.  This Act takes effect 
immediately if it receives a vote of two-thirds of all the 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, 2003.