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A BILL TO BE ENTITLED
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AN ACT
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relating to periodic rate adjustments by electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 36, Utilities Code, is |
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amended by adding Section 36.210 to read as follows: |
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Sec. 36.210. PERIODIC RATE ADJUSTMENTS. (a) The |
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commission or a regulatory authority, on the petition of an |
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electric utility, may approve a tariff or rate schedule in which a |
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nonfuel rate may be periodically adjusted upward or downward, based |
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on changes in the utility's investment. A periodic rate adjustment |
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must: |
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(1) be approved in compliance with an expedited |
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procedure that provides for appropriate updates of information and |
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allows for participation by the office and affected parties; |
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(2) take into account the effect that changes in the |
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number of an electric utility's customers, energy consumption, and |
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energy demand have on the amount of revenue recovered through the |
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electric utility's base rates; |
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(3) be consistent with the manner in which costs were |
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allocated to each rate class, as approved by the commission, in an |
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electric utility's most recent base rate proceeding; |
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(4) not diminish the ability of the commission, on its |
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own motion or on complaint by an affected person as provided by |
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Subchapter D, after reasonable notice and hearing, to change the |
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existing rates of an electric utility for a service after finding |
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that the rates are unreasonable or in violation of law; and |
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(5) be applied by an electric utility on a system-wide |
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basis. |
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(b) An electric utility in the ERCOT power region, or an |
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unbundled electric utility outside the ERCOT power region in whose |
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service area retail competition is available, that requests a |
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periodic rate adjustment under this section shall: |
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(1) except as provided by Subsection (c) and to the |
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extent possible, combine all nonfuel rates to be adjusted in a |
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12-month period that are charged by the utility to retail electric |
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providers into a single, annual rate adjustment; and |
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(2) finalize the resulting rates and provide notice to |
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retail electric providers of the resulting rates not later than the |
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45th day before the date the rates take effect. |
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(c) Subsection (b)(1) does not apply to a transmission |
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cost-of-service adjustment approved under Section 35.004(d) and |
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charged to distribution service providers. |
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(d) A periodic rate adjustment approved under this section |
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may not be used to adjust a nonfuel rate relating to the generation |
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of electricity. |
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(e) Nothing in this section is intended: |
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(1) to conflict with a provision contained in a |
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financing order issued under Subchapter I of this chapter or |
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Subchapter G or J, Chapter 39; or |
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(2) to affect the limitation on the commission's |
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jurisdiction under Section 32.002. |
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(f) The commission shall adopt rules necessary to implement |
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this section. The rules must provide for: |
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(1) a procedure by which a tariff or rate schedule is |
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to be reviewed and approved; and |
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(2) minimum filing requirements and discovery |
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consistent with the expedited procedure described by Subsection |
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(a)(1). |
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SECTION 2. The Public Utility Commission of Texas shall |
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adopt rules as necessary to implement Section 36.210, Utilities |
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Code, as added by this Act, not later than the 120th day after the |
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effective date of this Act. |
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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. |