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By: Turner H.B. No. 3180
A BILL TO BE ENTITLED
AN ACT
relating to reduced electric customer fees and continuation of
low-income programs established as part of electric utility
restructuring.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
Section 1. Sec. 39.903(b), Utilities Code, is amended by
amending Subsections (b) and (f) and adding Subsection (m) as
follows:
(b) The system benefit fund is financed by a nonbypassable
fee set by the commission in an amount not to exceed 5 [65] cents per
megawatt hour. The system benefit fund fee is allocated to
customers based on the amount of kilowatt hours used.
(f) Notwithstanding Section 39.106(b), the commission shall
adopt rules regarding programs to assist low-income electric
customers on the introduction of customer choice. The programs may
not be targeted to areas served by municipally owned utilities or
electric cooperatives that have not adopted customer choice. The
programs shall include:
(1) reduced electric rates as provided by Subsections
(h)-(m)[(l)]; and
(2) targeted energy efficiency programs to be
administered by the Texas Department of Housing and Community
Affairs in coordination with existing weatherization programs.
(m) Programs to assist low-income electric customers under
Subsection (f) shall be maintained either through the system
benefit fund or the regulated rates of the transmission and
distribution utility. In the event that appropriations from the
system benefit fund are insufficient to support reduced rates and
targeted energy efficiency programs for low-income customers, the
commission shall adopt and implement rules to continue funding for
programs under Subsection (f).
(1) The rules adopted by the commission shall require
each transmission and distribution utility with affected
low-income customers to:
(a) provide sufficient funding for a 20 percent
rate discount as described in Section 39.903(h), to be determined
annually by the commission, and administered by a third party
contractor selected and overseen by the commission;
(b) provide sufficient funding for targeted
energy efficiency programs under contract with the Texas Department
of Housing and Community Affairs as described in Subsection (f)(2),
in an amount equal to funding in FY 2003 as a baseline with annual
adjustments for inflation;
(c) allocate the costs of providing funding for
the rate discount and targeted energy efficiency programs in rates
as a nonbypassable cost of doing business allocated to all
customers based on the amount of kilowatt hours used.
(2) The rules adopted by the commission under this
Subsection shall establish procedures for retail electric
providers seeking reimbursement from the third party contractor for
the difference between the reduced rate and the rate the customer
would have otherwise paid. A retail electric provider seeking
reimbursement from the third party administrator may not charge an
eligible customer a rate higher than the appropriate rate
determined under Subsection (h).
(3) The commission shall assure that customers
receiving the rate discount established by Subsection (f)(1) in FY
05 experience no interruption in benefits and shall adopt rules to
implement this Subsection no later than 91 days after its effective
date.
(3) Recovery of costs under this Section by
transmission and distribution utilities shall be subject to
approval under Chapter 36.
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.