By:  Chisum                                                       H.B. No. 989



A BILL TO BE ENTITLED

AN ACT

relating to recovery of certain transmission investments of 
electric utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  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, the commission, after 
notice and hearing, 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 the state and may not allow the 
electric utility to over-recover costs.
	SECTION 2.  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, 2005.