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R E S O L U T I O N
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BE IT RESOLVED by the House of Representatives of the State of |
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Texas, 80th Legislature, Regular Session, 2007, That House Rule 13, |
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Section 9(a), be suspended in part as provided by House Rule 13, |
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Section 9(f), to enable the conference committee appointed to |
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resolve the differences on Senate Bill 482 (competition and |
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customer choice in the retail electric power market) to consider |
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and take action on the following matters: |
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(1) House Rule 13, Section 9(a)(4), is suspended to permit |
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the committee to add the following sections to the bill, to amend |
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Sections 15.023(b) and (d), Utilities Code, and Section 15.024(f), |
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Utilities Code, to read: |
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SECTION 1. Sections 15.023(b) and (d), Utilities Code, are |
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amended to read as follows: |
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(b) The penalty for a violation may be in an amount not to |
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exceed $25,000 except as provided by Section 39.157. Each day a |
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violation continues or occurs is a separate violation for purposes |
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of imposing a penalty. |
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(d) The classification system established under Subsection |
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(c) shall provide that a penalty in an amount that exceeds $5,000 |
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may be assessed only if the violation is included in the highest |
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class of violations in the classification system. Violations of |
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Section 39.157 shall be included in the highest class of |
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violations. |
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SECTION 2. Section 15.024(f), Utilities Code, is amended to |
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read as follows: |
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(f) If the person requests a hearing or fails to timely |
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respond to the notice, the executive director shall set a hearing |
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and give notice of the hearing to the person. The hearing shall be |
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held in accordance with Subchapter B, Chapter 14 [by an
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administrative law judge of the State Office of Administrative
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Hearings]. For hearings conducted by the State Office of |
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Administrative Hearings, the [The] administrative law judge shall |
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make findings of fact and conclusions of law and promptly issue to |
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the commission a proposal for a decision about the occurrence of the |
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violation and the amount of a proposed penalty. Based on the |
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findings of fact, conclusions of law, and proposal for a decision, |
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the commission by order may find that a violation has occurred and |
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impose a penalty or may find that no violation occurred. |
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Explanation: The addition of those sections to the bill is |
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necessary both to clarify the applicability of Sections 15.023 and |
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15.024, Utilities Code, when a penalty may be imposed as provided by |
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Section 39.157, Utilities Code, as amended by the bill, and to |
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clarify the authority of the Public Utility Commission of Texas to |
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conduct hearings in administrative penalty matters. |
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(2) House Rule 13, Section 9(a)(2), is suspended to permit |
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the committee to omit amended Section 39.101(h), Utilities Code, |
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from the bill. |
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Explanation: The change is necessary to retain the current |
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law's flexibility and certainty concerning the period for deferrals |
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of electric utility bill payments because of extreme weather. |
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(3) House Rule 13, Sections 9(a)(3) and (4), are suspended |
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to permit the committee to add the following Subsection (i) to added |
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Section 39.1015, Utilities Code, to read: |
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(i) This section does not apply to metered electric service |
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sold to residential customers on a prepaid basis. |
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Explanation: The change is necessary to prevent the |
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application of the prohibition on disconnecting certain customers' |
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electric service, intended to apply to customers with whom |
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arrangements are made for periodic payments for service, to |
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differently situated prepaid electric service customers. |
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(4) House Rule 13, Section 9(a)(4), is suspended to permit |
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the committee to add the following sections to the bill, to amend |
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Sections 39.262(c), 39.301, 39.302(4), 39.303(a), and 39.303(b), |
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Utilities Code, to read: |
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SECTION 15. Section 39.262(c), Utilities Code, is amended |
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to read as follows: |
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(c) After January 10, 2004, at a schedule and under |
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procedures to be determined by the commission, each transmission |
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and distribution utility, its affiliated retail electric provider, |
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and its affiliated power generation company shall jointly file to |
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finalize stranded costs under Subsections (h) and (i) and reconcile |
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those costs with the estimated stranded costs used to develop the |
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competition transition charge in the proceeding held under Section |
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39.201. Any resulting difference shall be applied to the |
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nonbypassable delivery rates of the transmission and distribution |
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utility, except that at the utility's option, any or all of the |
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amounts recovered under this section [remaining stranded costs] may |
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be securitized under Subchapter G. |
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SECTION 16. Section 39.301, Utilities Code, is amended to |
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read as follows: |
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Sec. 39.301. PURPOSE. The purpose of this subchapter is to |
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enable utilities to use securitization financing to recover |
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regulatory assets, all other amounts determined under Section |
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39.262, and any amounts being recovered under a competition |
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transition charge determined as a result of the proceedings under |
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Sections 39.201 and 39.262. This [and stranded costs, because this] |
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type of debt will lower the carrying costs of the assets relative to |
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the costs that would be incurred using conventional utility |
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financing methods. The proceeds of the transition bonds shall be |
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used solely for the purposes of reducing the amount of recoverable |
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regulatory assets and other amounts [stranded costs], as determined |
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by the commission in accordance with this chapter, through the |
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refinancing or retirement of utility debt or equity. The |
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commission shall ensure that securitization provides tangible and |
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quantifiable benefits to ratepayers, greater than would have been |
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achieved absent the issuance of transition bonds. The commission |
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shall ensure that the structuring and pricing of the transition |
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bonds result in the lowest transition bond charges consistent with |
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market conditions and the terms of the financing order. The amount |
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securitized may not exceed the present value of the revenue |
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requirement over the life of the proposed transition bond |
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associated with the regulatory assets or other amounts [stranded
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costs] sought to be securitized. The present value calculation |
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shall use a discount rate equal to the proposed interest rate on the |
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transition bonds. |
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SECTION 17. Section 39.302(4), Utilities Code, is amended |
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to read as follows: |
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(4) "Qualified costs" means 100 percent of an electric |
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utility's regulatory assets and 75 percent of its recoverable costs |
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determined by the commission under Section 39.201 and any remaining |
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amounts [stranded costs] determined under Section 39.262 together |
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with the costs of issuing, supporting, and servicing transition |
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bonds and any costs of retiring and refunding the electric |
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utility's existing debt and equity securities in connection with |
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the issuance of transition bonds. The term includes the costs to |
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the commission of acquiring professional services for the purpose |
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of evaluating proposed transactions under Section 39.201 and this |
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subchapter. |
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SECTION 18. Sections 39.303(a) and (b), Utilities Code, are |
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amended to read as follows: |
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(a) The commission shall adopt a financing order, on |
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application of a utility to recover the utility's regulatory assets |
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and other amounts determined [eligible stranded costs] under |
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Section 39.201 or 39.262, on making a finding that the total amount |
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of revenues to be collected under the financing order is less than |
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the revenue requirement that would be recovered over the remaining |
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life of the regulatory assets or other amounts [stranded costs] |
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using conventional financing methods and that the financing order |
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is consistent with the standards in Section 39.301. |
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(b) The financing order shall detail the amount of |
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regulatory assets and other amounts [stranded costs] to be |
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recovered and the period over which the nonbypassable transition |
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charges shall be recovered, which period may not exceed 15 years. If |
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an amount determined under Section 39.262 is subject to judicial |
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review at the time of the securitization proceeding, the financing |
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order shall include an adjustment mechanism requiring the utility |
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to adjust its rates, other than transition charges, or provide |
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credits, other than credits to transition charges, in a manner that |
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would refund over the remaining life of the transition bonds any |
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overpayments resulting from securitization of amounts in excess of |
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the amount resulting from a final determination after completion of |
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all appellate reviews. The adjustment mechanism may not affect the |
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stream of revenue available to service the transition bonds. An |
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adjustment may not be made under this subsection until all |
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appellate reviews, including, if applicable, appellate reviews |
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following a commission decision on remand of its original orders, |
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have been completed. |
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Explanation: The addition of those sections to the bill is |
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necessary to enable certain utilities to use securitization |
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financing to recover, in addition to regulatory assets, amounts |
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determined in a true-up proceeding under Subchapter F, Chapter 39, |
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Utilities Code, and amounts being recovered under a competition |
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transition charge under Subchapter E or F, Chapter 39, Utilities |
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Code. |
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King of Parker |
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______________________________ |
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Speaker of the House |
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I certify that H.R. No. 2854 was adopted by the House on May |
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26, 2007, by the following vote: Yeas 100, Nays 35, 3 present, not |
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voting. |
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______________________________ |
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Chief Clerk of the House |
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