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A BILL TO BE ENTITLED
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AN ACT
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relating to studying the feasibility of mechanisms to decouple |
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certain electric utility revenues from the volume of sales of |
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electricity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The Public Utility Commission of Texas shall |
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study the feasibility of mechanisms to decouple electric utility |
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revenues and earnings from the amount of electricity consumed by |
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utility customers so that investor-owned electric utilities, |
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electric transmission and distribution utilities, municipally |
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owned electric utilities, and electric cooperatives may prevent |
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fluctuations in retail electric energy consumption from affecting |
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the ability of those types of utilities to recover fixed costs of |
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service that do not ordinarily vary directly with changes in |
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electric energy consumption or sales volume. |
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SECTION 2. (a) The study described by Section 1 of this Act |
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must address disincentives to the promotion of efficient use of |
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electricity by better practices and better technology, including |
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concerns regarding: |
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(1) a utility's lost revenues from electricity sales |
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that may result from energy efficiency improvements or energy |
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saving practices that reduce electricity consumption; and |
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(2) a utility's recovery of the utility's costs for |
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programs promoting electric energy efficiency. |
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(b) In conducting the study, the Public Utility Commission |
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of Texas may consider and evaluate mechanisms proposed or applied |
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in other states for: |
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(1) allowing rates of return on energy efficiency |
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investments in a manner like those for other capital investments; |
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(2) providing an increased rate of return on overall |
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investments or on energy efficiency investments; |
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(3) providing financial incentives for meeting energy |
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efficiency targets; and |
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(4) recovering energy efficiency program costs. |
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SECTION 3. (a) The Public Utility Commission of Texas shall |
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report the conclusions of the study described by Section 1 of this |
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Act to the lieutenant governor, the speaker of the house of |
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representatives, and each committee of the 82nd Legislature that |
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has jurisdiction over electric utilities. |
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(b) The report must include recommendations tailored by |
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category to investor-owned electric utilities, electric |
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transmission and distribution utilities, municipally owned |
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electric utilities, and electric cooperatives. |
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(c) The report and recommendations must be delivered not |
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later than January 31, 2011, and must contain specific |
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recommendations regarding transmission and distribution utility |
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revenues and earnings in relation to electric energy efficiency, |
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including legislative proposals. |
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SECTION 4. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |