By: Estes S.B. No. 1668
A BILL TO BE ENTITLED
AN ACT
relating to the consideration of payments to an affiliate in
computing rates for electric utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 36.058, Utilities Code, is amended by
amending Subsection (c) and adding Subsection (f) to read as
follows:
(c) A finding under Subsection (b) must include:
(1) a specific finding of the reasonableness and
necessity of each item or class of items allowed; and
(2) a finding that the price to the electric utility is
not higher than the prices charged by the supplying affiliate [to
its other affiliates or divisions or to a nonaffiliated person] for
the same item or class of items to:
(A) its other affiliates or divisions; or
(B) a nonaffiliated person within the same market
area or having the same market conditions.
(f) If the regulatory authority finds that an affiliate
expense for the test period is unreasonable, the regulatory
authority shall:
(1) determine the reasonable level of the expense; and
(2) include that expense in determining the electric
utility's cost of service.
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.