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A BILL TO BE ENTITLED
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AN ACT
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relating to the application of certain demand charges by |
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transmission and distribution utilities to certain schools and |
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nonprofit athletic or sports associations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 35, Utilities Code, is |
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amended by adding Section 35.009 to read as follows: |
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Sec. 35.009. TIERED RATCHET PROVISIONS FOR CERTAIN UTILITY |
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CUSTOMERS. (a) This section applies only to the provision of |
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transmission and distribution services to a: |
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(1) public or private school; |
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(2) fairground owned or operated by a nonprofit |
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organization that is exempt from federal income taxation under |
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Section 501 or 503, Internal Revenue Code of 1986; or |
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(3) nonprofit athletic or sports association. |
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(b) If a transmission and distribution utility includes a |
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ratchet provision in a tariff relating to distribution service for |
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a customer to which this section applies, the utility shall apply |
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the ratchet provision in two tiers so that: |
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(1) during a billing period when the customer's |
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consumption of electrical power is high, the ratchet provision |
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provides for the customer to be charged in a manner comparable to |
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that for other customers subject to a ratchet provision to |
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accommodate high demand; and |
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(2) during a billing period when the customer's |
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consumption of electrical power is low, the ratchet provision |
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provides for the customer to be charged in a manner comparable to |
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that for other customers in the same service area who consume a |
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similar amount of electrical power. |
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SECTION 2. The Public Utility Commission of Texas shall |
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adopt rules as necessary to implement Section 35.009, Utilities |
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Code, as added by this Act, as soon as practicable. A transmission |
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and distribution utility shall modify ratchet provisions contained |
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in its tariffs applicable to each school, organization, or |
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association in accordance with Section 35.009, Utilities Code, as |
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added by this Act, not later than January 1, 2012. |
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SECTION 3. 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, 2011. |