79R4276 CBH-F

By:  Goodman                                                      H.B. No. 3382



A BILL TO BE ENTITLED

AN ACT

relating to an annual adjustment of franchise fees paid to a 
municipality by certain providers of electricity.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 33.008(b), Utilities Code, is amended to 
read as follows:
	(b)  If a municipality collected a charge or fee for a 
franchise to use a municipal street, alley, or public way from an 
electric utility, a municipally owned utility, or an electric 
cooperative before the end of the freeze period, the municipality, 
after the end of the freeze period or after implementation of 
customer choice by the municipally owned utility or electric 
cooperative, as appropriate, is entitled to collect from each 
electric utility, transmission and distribution utility, 
municipally owned utility, or electric cooperative that uses the 
municipality's streets, alleys, or public ways to provide 
distribution service a charge based on each kilowatt hour of 
electricity delivered by the utility to each retail customer whose 
consuming facility's point of delivery is located within the 
municipality's boundaries.  The charge imposed shall be equal to 
the total electric franchise fee revenue due the municipality from 
electric utilities, municipally owned utilities, or electric 
cooperatives, as appropriate, for calendar year 1998 divided by the 
total kilowatt hours delivered during 1998 by the applicable 
electric utility, municipally owned utility, or electric 
cooperative to retail customers whose consuming facilities' points 
of delivery were located within the municipality's boundaries.  The 
compensation a municipality may collect from each electric utility, 
transmission and distribution utility, municipally owned utility, 
or electric cooperative providing distribution service shall be 
equal to the charge per kilowatt hour determined for 1998 
multiplied times the number of kilowatt hours delivered within the 
municipality's boundaries.  A municipality is entitled to annually 
adjust the amount of compensation the municipality may collect 
under this section from an electric utility, transmission and 
distribution utility, municipally owned utility, or electric 
cooperative providing distribution service by an amount equal to 
the amount of the previous year's compensation from that entity 
multiplied by a percentage equal to one-half of the annual 
percentage change, if any, in the consumer price index.  In this 
subsection, "consumer price index" means the most recent annual 
revised Consumer Price Index for all Urban Consumers for Texas, as 
published by the Federal Bureau of Labor Statistics of the United 
States Department of Labor.
	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.