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A BILL TO BE ENTITLED
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AN ACT
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relating to the consideration of an electric utility's effective |
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use of competitive procurement methods in determining the utility's
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rate of return. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.052, Utilities Code, is amended to |
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read as follows: |
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Sec. 36.052. ESTABLISHING REASONABLE RETURN. In |
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establishing a reasonable return on invested capital, the |
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regulatory authority shall consider applicable factors, including: |
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(1) the efforts and achievements of the utility in |
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conserving resources; |
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(2) the quality of the utility's services; |
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(3) the efficiency of the utility's operations; [and] |
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(4) the quality of the utility's management; and |
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(5) the utility's effective use of competitive |
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procurement methods. |
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SECTION 2. The change in law made by this Act applies only |
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to a final order establishing an electric utility's rates that is |
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issued by the Public Utility Commission of Texas on or after the |
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effective date of this Act. A final order issued before the |
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effective date of this Act is governed by the law in effect when the |
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order was issued, and the former law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2007. |