81R4751 JJT-D
 
  By: Ellis S.B. No. 1972
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to studying the feasibility of mechanisms to decouple
  certain electric utility revenues from the volume of sales of
  electricity.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  The Public Utility Commission of Texas shall
  study the feasibility of mechanisms to decouple electric utility
  revenues and earnings from the amount of electricity consumed by
  utility customers so that investor-owned electric utilities,
  electric transmission and distribution utilities, municipally
  owned electric utilities, and electric cooperatives may prevent
  fluctuations in retail electric energy consumption from affecting
  the ability of those types of utilities to recover fixed costs of
  service that do not ordinarily vary directly with changes in
  electric energy consumption or sales volume.
         SECTION 2.  (a) The study described by Section 1 of this Act
  must address disincentives to the promotion of efficient use of
  electricity by better practices and better technology, including
  concerns regarding:
               (1)  a utility's lost revenues from electricity sales
  that may result from energy efficiency improvements or energy
  saving practices that reduce electricity consumption; and
               (2)  a utility's recovery of the utility's costs for
  programs promoting electric energy efficiency.
         (b)  In conducting the study, the Public Utility Commission
  of Texas may consider and evaluate mechanisms proposed or applied
  in other states for:
               (1)  allowing rates of return on energy efficiency
  investments in a manner like those for other capital investments;
               (2)  providing an increased rate of return on overall
  investments or on energy efficiency investments;
               (3)  providing financial incentives for meeting energy
  efficiency targets; and
               (4)  recovering energy efficiency program costs.
         SECTION 3.  (a)  The Public Utility Commission of Texas shall
  report the conclusions of the study described by Section 1 of this
  Act to the lieutenant governor, the speaker of the house of
  representatives, and each committee of the 82nd Legislature that
  has jurisdiction over electric utilities.
         (b)  The report must include recommendations tailored by
  category to investor-owned electric utilities, electric
  transmission and distribution utilities, municipally owned
  electric utilities, and electric cooperatives.
         (c)  The report and recommendations must be delivered not
  later than January 31, 2011, and must contain specific
  recommendations regarding transmission and distribution utility
  revenues and earnings in relation to electric energy efficiency,
  including legislative proposals.
         SECTION 4.  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.