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	Amend CSHB 1777 by striking Sections 4 and 5 of the bill (page 
20, line 24, through page 21, line 19), by adding the following 
appropriately numbered section, and by renumbering the subsequent 
sections accordingly:
	SECTION ___. Subchapter E, Chapter 36, Utilities Code, is 
amended by adding Section 36.209 to read as follows:
	Sec. 36.209. RECOVERY BY CERTAIN NON-ERCOT UTILITIES OF 
CERTAIN TRANSMISSION COSTS.  (a)  This section applies only to an 
electric utility that operates solely outside of ERCOT in areas of 
this state included in the Southwest Power Pool and that owns or 
operates transmission facilities.
	(b)  Notwithstanding Section 36.201, after notice and 
hearing, the commission may allow an electric utility to recover on 
an annual basis its reasonable and necessary expenditures for 
transmission infrastructure improvement costs and changes in 
wholesale transmission charges to the electric utility under a 
tariff approved by a federal regulatory authority to the extent 
that the costs or charges have not otherwise been recovered. The 
commission may allow the electric utility to recover only the costs 
allocable to retail customers in this state and may not allow the 
electric utility to over-recover costs.