By: Crownover H.B. No. 4309

A BILL TO BE ENTITLED

AN ACT

relating a requirement for electric utilities to seek grants or loans related to the deployment of advanced meters and transmission for renewable energy.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 39.107(h), Utilities Code, is amended to read as follows:

(h) The commission shall establish a nonbypassable surcharge for an electric utility or transmission and distribution utility to use to recover reasonable and necessary costs incurred in deploying advanced metering and meter information networks to residential customers and nonresidential customers other than those required by the independent system operator to have an interval data recorder meter. The commission shall ensure that the nonbypassable surcharge reflects a deployment of advanced meters that is no more than one-third of the utility's total meters over each calendar year and shall ensure that the nonbypassable surcharge does not result in the utility recovering more than its actual, fully allocated meter and meter information network costs. The expenses must be allocated to the customer classes receiving the services, based on the electric utility's most recently approved tariffs. An electric utility or transmission and distribution utility that deploys advanced meter and meter information networks shall seek to obtain and utilize funds, including grants, loans, and loan guarantees, made available by the federal government if such funds would lower the overall cost of deployment. The commission shall reflect the funds obtained by the electric utility or transmission and distribution utility when establishing the surcharge required by this subsection, including timely ordering reductions to surcharges approved prior to the receipt of the funds.

SECTION 2. Section 39.904, Utilities Code, is amended by adding Subsection (h-1) to read as follows:

(h-1) An electric utility, transmission and distribution utility, or river authority that has been designated by the commission to construct transmission capacity pursuant to Subsection (g) shall seek to obtain and utilize funds, including grants, loans, and loan guarantees, made available by the federal government if such funds would lower the overall cost of construction. The commission shall reflect the funds obtained by the electric utility, transmission and distribution utility, or river authority when establishing or modifying the rates of the electric utility or transmission and distribution utility, including timely ordering reductions to rates approved prior to the receipt of the funds.

SECTION 3. This Act takes effect immediately if it receives a vote of two-thirds of all the members elected to each house, as provided by Section 39, Article III, Texas Constitution. If this Act does not receive the vote necessary for immediate effect, this Act takes effect September 1, 2009.