By: Oliveira H.B. No. 4610

A BILL TO BE ENTITLED

AN ACT

relating to cost recovery by a transmission and distribution utility of distribution system costs.

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

SECTION 1. The Legislature finds that because of the importance of a reliable electric distribution system to this state's economy and the welfare of its citizens, it is in the public interest to promote investment in distribution systems and the maintenance of such systems by providing for a more expeditious regulatory process for the recovery of such costs.

SECTION 2. Section 36.204, Utilities Code, is amended by adding Subsection (b) and renumbering the existing section to read as follows:

Sec. 36.204. COST RECOVERY AND INCENTIVES. (a) In establishing rates for an electric utility, the commission may:

(1) allow timely recovery of the reasonable costs of conservation, load management, and purchased power, notwithstanding Section 36.201; and

(2) authorize additional incentives for conservation, load management, purchased power, and renewable resources.

(b) Notwithstanding Section 36.201 and as an alternative to a rate case under Subchapter C in which all costs and revenues are considered, a regulatory authority shall allow a transmission and distribution utility, at the transmission and distribution utility's option, to adjust its rates to ensure timely recovery of distribution investment and operations and maintenance expense related to distribution. The commission shall adopt rules to implement this Subsection to provide a more expeditious regulatory process for the recovery of such costs.

SECTION 3. Effective Date. 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.