By:  Chisum (Senate Sponsor - Seliger)                            H.B. No. 989
	(In the Senate - Received from the House May 2, 2005; 
May 3, 2005, read first time and referred to Committee on Business 
and Commerce; May 17, 2005, reported adversely, with favorable 
Committee Substitute by the following vote:  Yeas 7, Nays 0; 
May 17, 2005, sent to printer.)


COMMITTEE SUBSTITUTE FOR H.B. No. 989                                    By:  Carona


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 or the Western 
Electricity Coordinating Council and that owns or operates 
transmission facilities.
	(b)  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.



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