By: Turner, Bonnen, Giddings, Bohac, Homer, H.B. No. 551
      et al.
 
Substitute the following for H.B. No. 551:
 
  By:  Turner C.S.H.B. No. 551
 
A BILL TO BE ENTITLED
AN ACT
relating to the system benefit fund and to eligibility for and
enrollment for benefits provided under the system benefit fund
programs.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  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 2.  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.
       SECTION 3.  This Act takes effect September 1, 2007.