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A BILL TO BE ENTITLED
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AN ACT
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relating to discounted utility rates for school districts and |
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open-enrollment charter schools; providing an administrative |
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penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.351, Utilities Code, is reenacted and |
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amended to read as follows: |
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Sec. 36.351. DISCOUNTED RATES FOR CERTAIN INSTITUTIONS OF |
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HIGHER EDUCATION AND SCHOOL DISTRICTS. (a) Notwithstanding any |
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other provision of this title, as provided by Subsection (b), each |
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electric utility in an area in which customer choice is not |
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available or in which the commission has delayed the implementation |
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of customer choice and each electric cooperative, transmission and |
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distribution utility, and municipally owned utility shall discount |
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charges for electric service provided to a facility of a four-year |
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state university, upper-level institution, Texas State Technical |
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College, [or] college, or school district. |
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(b) The discount is a 20-percent reduction of the utility's |
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base rates that would otherwise be paid under the applicable |
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tariffed rate. As provided by commission rules, the discount must |
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be provided to an educational entity listed under Subsection (a) or |
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to a retail electric provider that provides service to an |
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educational entity in an area where customer choice is available. |
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(b-1) A retail electric provider that receives a discount |
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under Subsection (b) shall apply a discount received under |
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Subsection (b) to an educational entity described by Subsection (a) |
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as a credit in an amount equal to the amount of the discount. The |
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commission may suspend, revoke, or amend the retail electric |
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provider's certificate of a retail electric provider that does not |
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apply the discount to an educational entity described by Subsection |
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(a). The commission shall impose an administrative penalty on a |
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retail electric provider that does not apply the discount to an |
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educational entity listed under Subsection (a). |
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(c) An electric or municipally owned utility is exempt from |
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this section if the 20-percent discount results in a reduction |
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equal to more than one percent of the utility's total annual |
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revenues. |
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(d) A municipally owned utility is exempt from this section |
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if the municipally owned utility, on September 1, 1995, discounted |
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base commercial rates for electric service provided to all |
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four-year state universities or colleges in its service area by 20 |
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percent or more. |
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(e) This section does not apply to a rate charged to an |
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institution of higher education by a municipally owned utility that |
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provides a discounted rate to the state for electric services below |
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rates in effect on January 1, 1995, if the discounted rate provides |
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a greater financial discount to the state than is provided to the |
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institution of higher education through the discount provided by |
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this section. |
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(f) An investor-owned electric utility may not recover from |
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residential customers or any other customer class the assigned and |
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allocated costs of serving an entity [a state university or
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college] that receives a discount under this section. |
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(g) Each electric utility shall file tariffs with the |
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commission reflecting the discount required under this section. |
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The initial tariff filing is not a rate change for purposes of |
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Subchapter C. |
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SECTION 2. The change in law made by this Act applies only |
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to a rate charged on or after the effective date of this Act. A rate |
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charged before the effective date of this Act is governed by the law |
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in effect when the rate was charged, and that law is continued in |
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effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2011. |