|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to periodic rate adjustments by electric utilities. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Subchapter E, Chapter 36, Utilities Code, is |
|
amended by adding Section 36.210 to read as follows: |
|
Sec. 36.210. PERIODIC RATE ADJUSTMENTS. (a) The |
|
commission or a regulatory authority, on the petition of an |
|
electric utility, may approve a tariff or rate schedule in which a |
|
nonfuel rate may be periodically adjusted upward or downward, based |
|
on changes in the parts of the utility's invested capital, as |
|
described by Section 36.053, that are categorized as distribution |
|
plant, distribution-related intangible plant, and |
|
distribution-related communication equipment and networks in |
|
accordance with commission rules adopted after consideration of the |
|
uniform system of accounts prescribed by the Federal Energy |
|
Regulatory Commission. A periodic rate adjustment must: |
|
(1) be approved or denied in accordance with an |
|
expedited procedure that: |
|
(A) provides for appropriate updates of |
|
information; |
|
(B) allows for participation by the office and |
|
affected parties; and |
|
(C) extends for not less than 60 days; |
|
(2) take into account changes in the number of an |
|
electric utility's customers and the effects, on a |
|
weather-normalized basis, that energy consumption and energy |
|
demand have on the amount of revenue recovered through the electric |
|
utility's base rates; |
|
(3) be consistent with the manner in which costs for |
|
invested capital described by this subsection were allocated to |
|
each rate class, as approved by the commission, in an electric |
|
utility's most recent base rate statement of intent proceeding with |
|
changes to residential and commercial class rates reflected in |
|
volumetric charges to the extent that residential and commercial |
|
class rates are collected in that manner based on the electric |
|
utility's most recent base rate statement of intent proceeding; |
|
(4) not diminish the ability of the commission or a |
|
regulatory authority, on its own motion or on complaint by an |
|
affected person as provided by Subchapter D, after reasonable |
|
notice and hearing, to change the existing rates of an electric |
|
utility for a service after finding that the rates are unreasonable |
|
or in violation of law; |
|
(5) be applied by an electric utility on a system-wide |
|
basis; and |
|
(6) be supported by the sworn statement of an |
|
appropriate employee of the electric utility that affirms that: |
|
(A) the filing is in compliance with the |
|
provisions of the tariff or rate schedule; and |
|
(B) the filing is true and correct to the best of |
|
the employee's knowledge, information, and belief. |
|
(b) An electric utility in the ERCOT power region, or an |
|
unbundled electric utility outside the ERCOT power region in whose |
|
service area retail competition is available, that requests a |
|
periodic rate adjustment under this section shall: |
|
(1) except as provided by Subsection (e)(3) and to the |
|
extent possible, implement simultaneously all nonfuel rates to be |
|
adjusted in a 12-month period that are charged by the utility to |
|
retail electric providers; and |
|
(2) provide notice to retail electric providers of the |
|
approved rates not later than the 45th day before the date the rates |
|
take effect. |
|
(c) A periodic rate adjustment approved under this section |
|
may not be used to adjust the portion of a nonfuel rate relating to |
|
the generation of electricity. |
|
(d) An electric utility may adjust the utility's rates under |
|
this section not more than once per year and not more than four |
|
times between comprehensive base rate proceedings. |
|
(e) Nothing in this section is intended to: |
|
(1) conflict with a provision contained in a financing |
|
order issued under Subchapter I of this chapter or Subchapter G or |
|
J, Chapter 39; |
|
(2) affect the limitation on the commission's |
|
jurisdiction under Section 32.002; |
|
(3) include in a periodic rate adjustment authorized |
|
by this section costs adjusted under a transmission cost-of-service |
|
adjustment approved under Section 35.004(d); |
|
(4) limit the jurisdiction of a municipality over the |
|
rates, operations, and services of an electric utility as provided |
|
by Section 33.001; |
|
(5) limit the ability of a municipality to obtain a |
|
reimbursement under Section 33.023 for the reasonable cost of |
|
services of a person engaged in an activity described by that |
|
section; or |
|
(6) prevent the commission from: |
|
(A) reviewing the investment costs included in a |
|
periodic rate adjustment or in the following comprehensive base |
|
rate proceeding to determine whether the costs were prudent, |
|
reasonable, and necessary; or |
|
(B) refunding to customers any amount improperly |
|
recovered through the periodic rate adjustments, with appropriate |
|
carrying costs. |
|
(f) The commission shall adopt rules necessary to implement |
|
this section. The rules must provide for: |
|
(1) a procedure by which a tariff or rate schedule is |
|
to be reviewed and approved; |
|
(2) filing requirements and discovery consistent with |
|
the expedited procedure described by Subsection (a)(1); |
|
(3) an earnings monitoring report that allows the |
|
commission or regulatory authority to reasonably determine whether |
|
a utility is earning in excess of the utility's allowed return on |
|
investment as normalized for weather; |
|
(4) denial of the electric utility's filing if the |
|
electric utility is earning more than the utility's authorized rate |
|
of return on investment, on a weather-normalized basis, at the time |
|
the periodic rate adjustment request is filed; and |
|
(5) a mechanism by which the commission may refund |
|
customers any amounts determined to be improperly recovered through |
|
a periodic rate adjustment, including any interest on the amounts. |
|
(g) This section expires August 31, 2017. |
|
SECTION 2. The Public Utility Commission of Texas shall |
|
adopt rules as necessary to implement Section 36.210, Utilities |
|
Code, as added by this Act, not later than the 120th day after the |
|
effective date of this Act. |
|
SECTION 3. 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, 2011. |