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A BILL TO BE ENTITLED
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AN ACT
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relating to the system benefit fund and to eligibility for and |
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enrollment for benefits provided under the system benefit fund |
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programs. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.903, Utilities Code, is amended by |
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amending Subsections (a), (b), (e), (h), (j), and (l) and adding |
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Subsections (e-1) and (e-2) to read as follows: |
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(a) The system benefit fund is a trust fund held outside the |
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state treasury by the commission solely for the benefit of programs |
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and [an account in the general revenue fund. Money in the account
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may be appropriated only for the] purposes provided by this section |
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[or other law]. Interest earned on the system benefit fund shall be |
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credited to the fund. The commission shall administer the system |
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benefit fund as trustee and may act as necessary to make payments |
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from the system benefit fund as necessary to accomplish the |
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purposes of this section [Section 403.095, Government Code, does
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not apply to the system benefit fund]. |
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(b) The system benefit fund is financed by a nonbypassable |
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fee set by the commission in an amount not to exceed 65 cents per |
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megawatt hour. The system benefit fund fee is allocated to |
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customers based on the amount of kilowatt hours used. The |
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commission by rule shall provide necessary procedures for fees |
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collected under this section to be deposited in the system benefit |
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fund and credited properly. The commission may establish separate |
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accounts in the system benefit fund for purposes authorized by this |
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section. |
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(e) Money in the system benefit fund may be spent |
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[appropriated to provide funding] solely for the purpose described |
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by Subsection (e-1) and for the following [regulatory] purposes, in |
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the following order of priority: |
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(1) programs to: |
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(A) assist low-income electric customers by |
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providing the 10-20 [10] percent reduced rate prescribed by |
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Subsection (h); and |
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(B) provide one-time bill payment assistance to |
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electric customers who are or who have in their households one or |
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more seriously ill or disabled low-income persons and who have been |
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threatened with disconnection for nonpayment; |
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(2) customer education programs, subject to |
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Subsection (e-2); |
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(3) [,] administrative expenses incurred by the |
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commission in implementing and administering this chapter, and |
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expenses incurred by the office under this chapter; and |
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(4) [(3)] programs to assist low-income electric |
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customers by providing the targeted energy efficiency programs |
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described by Subsection (f)(2)[;
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[(4) programs to assist low-income electric customers
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by providing the 20 percent reduced rate prescribed by Subsection
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(h); and
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[(5) reimbursement to the commission and the Health
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and Human Services Commission for expenses incurred in the
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implementation and administration of an integrated eligibility
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process created under Section 17.007 for customer service discounts
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relating to retail electric service, including outreach expenses
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the commission determines are reasonable and necessary]. |
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(e-1) The commission by rule shall develop and implement a |
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program through which a retail electric provider shall provide a |
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rate reduction for an eligible nursing home customer. The |
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commission shall accept applications from nursing homes for a rate |
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reduction under this subsection and shall determine the rate |
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reduction for each retail electric provider that supplies |
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electricity to each approved nursing home so that each nursing home |
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receives an equal percentage reduction from the rate the nursing |
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home otherwise would be charged. The percentage reduction must be |
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the maximum percentage reduction, not to exceed 20 percent, that |
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the commission may finance from an amount equal to five percent of |
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the annual income of the system benefit fund, including the costs of |
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administering this subsection. A nursing home is eligible for a |
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rate reduction under this subsection only if the nursing home is a |
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nonprofit entity and at least half of the entity's nursing |
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residents are Medicaid eligible. |
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(e-2) The commission may not use money in the system benefit |
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fund for customer education programs described by Subsection (e)(2) |
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on or after September 1, 2009. |
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(h) The commission shall adopt rules for a retail electric |
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provider to determine a reduced rate for eligible customers to be |
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discounted off the standard retail service package as approved by |
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the commission under Section 39.106, or the price to beat |
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established by Section 39.202, whichever is lower. Municipally |
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owned utilities and electric cooperatives shall establish a reduced |
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rate for eligible customers to be discounted off the standard |
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retail service package established under Section 40.053 or 41.053, |
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as appropriate. The reduced rate for a retail electric provider |
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shall result in a total charge that is at least 10 percent and, if |
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sufficient money in the system benefit fund is available, up to 20 |
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percent, lower than the amount the customer would otherwise be |
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charged. [To the extent the system benefit fund is insufficient to
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fund the initial 10 percent rate reduction, the commission may
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increase the fee to an amount not more than 65 cents per megawatt
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hour, as provided by Subsection (b). If the fee is set at 65 cents
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per megawatt hour or if the commission determines that
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appropriations are insufficient to fund the 10 percent rate
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reduction, the commission may reduce the rate reduction to less
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than 10 percent.] For a municipally owned utility or electric |
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cooperative, the reduced rate shall be equal to an amount that can |
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be fully funded by that portion of the nonbypassable fee proceeds |
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paid by the municipally owned utility or electric cooperative that |
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is allocated to the utility or cooperative by the commission under |
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Subsection (e) for programs for low-income customers of the utility |
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or cooperative. The reduced rate for municipally owned utilities |
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and electric cooperatives under this section is in addition to any |
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rate reduction that may result from local programs for low-income |
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customers of the municipally owned utilities or electric |
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cooperatives. |
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(j) The commission shall adopt rules providing for methods |
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of enrolling customers eligible to receive reduced rates under |
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Subsection (h). The rules must provide for automatic enrollment as |
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one enrollment option. On [The Texas Department of Human Services,
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on] request of the commission, each appropriate governmental entity |
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shall assist in the adoption and implementation of these rules. |
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Each assisting governmental entity [The commission and the Texas
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Department of Human Services] shall enter into a memorandum of |
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understanding with the commission establishing the respective |
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duties of the commission and the entity [department] in relation to |
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the automatic enrollment. Each assisting governmental entity shall |
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supply to the commission any information necessary for the |
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commission to implement automatic enrollment for reduced rates |
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under Subsection (h). The commission shall prepare a report each |
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calendar quarter with information concerning the enrollment of |
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customers eligible for the reduced rates. The commission shall |
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compile the information into an annual report to be published for |
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periodic distribution not later than January 1 of each odd-numbered |
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year. The commission shall send a copy of each annual and quarterly |
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report to each member of the legislature and the electric utility |
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restructuring legislative oversight committee. |
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(l) For the purposes of this section, a "low-income electric |
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customer" is an electric customer: |
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(1) whose household income is not more than 125 |
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percent of the federal poverty guidelines; or |
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(2) in whose household resides a person who: |
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(A) receives food stamps from the Health and |
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Human Services Commission [Texas Department of Human Services] or |
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medical assistance from a state agency administering a part of the |
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medical assistance program; |
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(B) receives federal housing assistance; |
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(C) has a child enrolled in the national school |
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lunch program for free or reduced-price lunches; or |
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(D) receives lifeline telephone service. |
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SECTION 2. (a) For the state fiscal year beginning |
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September 1, 2007, the Public Utility Commission of Texas shall |
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spend at least $12 million from the system benefit fund for the |
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purposes of customer education programs described by Section |
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39.903(e)(2), Utilities Code. |
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(b) For the state fiscal year beginning September 1, 2008, |
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the Public Utility Commission of Texas shall spend at least $12 |
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million from the system benefit fund for the purposes of customer |
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education programs described by Section 39.903(e)(2), Utilities |
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Code. |
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SECTION 3. The Public Utility Commission of Texas shall |
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adopt rules required by Section 39.903, Utilities Code, as amended |
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by this Act, not later than January 1, 2008. |
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SECTION 4. This Act takes effect September 1, 2007. |