Amend CSSB 482 as follows:                                                   
	(1) Add the following appropriately numbered SECTIONS:                         
	SECTION ____.  Section 39.903, Utilities Code, is amended by 
amending Subsections (a), (e), (h), (j), and (l) and adding 
Subsection (e-1) to read as follows:
	(a)  The system benefit fund is an account in the general 
revenue fund. Money in the account may be appropriated only for the 
purposes provided by this section [or other law].  Interest earned 
on the system benefit fund shall be credited to the fund. Section 
403.095, Government Code, does not apply to the system benefit 
fund.
	(e)  Money in the system benefit fund may be appropriated 
only to provide funding [solely] for the following [regulatory] 
purposes, in the following order of priority:
		(1)  programs to:                                                             
			(A)  assist low-income electric customers by 
providing the 10-20 [10] percent reduced rate prescribed by 
Subsection (h); and
			(B)  provide one-time bill payment assistance to 
electric customers who are or who have in their households one or 
more seriously ill or disabled low-income persons and who have been 
threatened with disconnection for nonpayment;
		(2)  customer education programs;                                      
		(3)  [,] administrative expenses incurred by the 
commission in implementing and administering this chapter, and 
expenses incurred by the office under this chapter;
		(4) [(3)]  programs to assist low-income electric 
customers by providing the targeted energy efficiency programs 
described by Subsection (f)(2); and
		(5)  the rate reductions for nursing homes under 
Subsection (e-1)[;
		[(4)  programs to assist low-income electric customers 
by providing the 20 percent reduced rate prescribed by Subsection 
(h); and
		[(5)  reimbursement to the commission and the Health 
and Human Services Commission for expenses incurred in the 
implementation and administration of an integrated eligibility 
process created under Section 17.007 for customer service discounts 
relating to retail electric service, including outreach expenses 
the commission determines are reasonable and necessary].
	(e-1)  The commission by rule shall develop and implement a 
program through which a retail electric provider shall provide a 
rate reduction for an eligible nursing home customer.  The 
commission shall accept applications from nursing homes for a rate 
reduction under this subsection and shall determine the rate 
reduction for each retail electric provider that supplies 
electricity to each approved nursing home so that each nursing home 
receives an equal percentage reduction from the rate the nursing 
home otherwise would be charged.  The percentage reduction must be 
the maximum percentage reduction, not to exceed 20 percent, that 
the commission may finance from appropriated money available for 
that purpose. The commission may not apply to that purpose more than 
an amount equal to five percent of the annual income of the system 
benefit fund, including the costs of administering this subsection.  
A nursing home is eligible for a rate reduction under this 
subsection only if the nursing home is a nonprofit entity and at 
least half of the entity's nursing residents are Medicaid eligible.
	(h)  The commission shall adopt rules for a retail electric 
provider to determine a reduced rate for eligible customers to be 
discounted off the standard retail service package as approved by 
the commission under Section 39.106, or the price to beat 
established by Section 39.202, whichever is lower.  Municipally 
owned utilities and electric cooperatives shall establish a reduced 
rate for eligible customers to be discounted off the standard 
retail service package established under Section 40.053 or 41.053, 
as appropriate.  The reduced rate for a retail electric provider 
shall result in a total charge that is at least 10 percent and, if 
sufficient money in the system benefit fund is available, up to 20 
percent, lower than the amount the customer would otherwise be 
charged.  [To the extent the system benefit fund is insufficient to 
fund the initial 10 percent rate reduction, the commission may 
increase the fee to an amount not more than 65 cents per megawatt 
hour, as provided by Subsection (b).  If the fee is set at 65 cents 
per megawatt hour or if the commission determines that 
appropriations are insufficient to fund the 10 percent rate 
reduction, the commission may reduce the rate reduction to less 
than 10 percent.]  For a municipally owned utility or electric 
cooperative, the reduced rate shall be equal to an amount that can 
be fully funded by that portion of the nonbypassable fee proceeds 
paid by the municipally owned utility or electric cooperative that 
is allocated to the utility or cooperative by the commission under 
Subsection (e) for programs for low-income customers of the utility 
or cooperative.  The reduced rate for municipally owned utilities 
and electric cooperatives under this section is in addition to any 
rate reduction that may result from local programs for low-income 
customers of the municipally owned utilities or electric 
cooperatives.
	(j)  The commission shall adopt rules providing for methods 
of enrolling customers eligible to receive reduced rates under 
Subsection (h).  The rules must provide for automatic enrollment as 
one enrollment option.  On [The Texas Department of Human Services, 
on] request of the commission, each appropriate governmental entity
shall assist in the adoption and implementation of these rules.  
Each assisting governmental entity [The commission and the Texas 
Department of Human Services] shall enter into a memorandum of 
understanding with the commission establishing the respective 
duties of the commission and the entity [department] in relation to 
the automatic enrollment.  Each assisting governmental entity shall 
supply to the commission any information necessary for the 
commission to implement automatic enrollment for reduced rates 
under Subsection (h).  The commission shall prepare a report each 
calendar quarter with information concerning the enrollment of 
customers eligible for the reduced rates.  The commission shall 
compile the information into an annual report to be published for 
periodic distribution not later than January 1 of each odd-numbered 
year.  The commission shall send a copy of each annual and quarterly 
report to each member of the legislature and the electric utility 
restructuring legislative oversight committee.
	(l)  For the purposes of this section, a "low-income electric 
customer" is an electric customer:
		(1)  whose household income is not more than 125 
percent of the federal poverty guidelines; or
		(2)  in whose household resides a person who:                   
			(A)  receives food stamps from the Health and 
Human Services Commission [Texas Department of Human Services] or 
medical assistance from a state agency administering a part of the 
medical assistance program;
			(B)  receives federal housing assistance;                             
			(C)  has a child enrolled in the national school 
lunch program for free or reduced-price lunches; or
			(D)  receives lifeline telephone service.                             
	SECTION ____.  The Public Utility Commission of Texas shall 
adopt rules required by Section 39.903, Utilities Code, as amended 
by this Act, not later than January 1, 2008.
	(2)  Renumber subsequent SECTIONS of the bill accordingly.