79R2781 JJT-F

By:  Chisum                                                       H.B. No. 989



A BILL TO BE ENTITLED

AN ACT

relating to electric utility rates and riders to provide for 
recovery of certain transmission investments.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 36.201, Utilities Code, is amended to 
read as follows:   
	Sec. 36.201.  AUTOMATIC ADJUSTMENT FOR CHANGES IN COSTS.  
Except as permitted by Section 36.204 or 36.209, the commission may 
not establish a rate or tariff that authorizes an electric utility 
to automatically adjust and pass through to the utility's customers 
a change in the utility's fuel or other costs.
	SECTION 2.  Subchapter E, Chapter 36, Utilities Code, is 
amended by adding Section 36.209 to read as follows:
	Sec. 36.209.  RECOVERY BY NON-ERCOT UTILITIES OF 
TRANSMISSION IMPROVEMENT COSTS.  The commission by rule shall 
establish a procedure to ensure that an electric utility operated 
solely outside of ERCOT that owns or operates transmission 
facilities may timely and periodically recover transmission 
infrastructure improvement costs through a rate rider mechanism.  A 
rate proceeding under this chapter is not necessary to implement 
the rider.
	SECTION 3.  The Public Utility Commission of Texas shall 
adopt rules as necessary to implement Section 36.209, Utilities 
Code, as added by this Act, not later than the 90th day after the 
effective date of this Act.
	SECTION 4.  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.