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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 public educational |
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institutions; providing an administrative penalty. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. The heading to Section 36.351, Utilities Code, |
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is amended to read as follows: |
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Sec. 36.351. DISCOUNTED RATES FOR CERTAIN SCHOOLS AND |
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INSTITUTIONS OF HIGHER EDUCATION. |
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SECTION 2. Section 36.351, Utilities Code, is amended by |
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amending Subsections (a), (b), and (f) and adding Subsections (b-1) |
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and (d-1) to read as follows: |
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(a) Notwithstanding any other provision of this title, each |
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electric utility and transmission and distribution utility and, |
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except as provided by Subsection (d-1), each municipally owned |
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utility shall discount charges for electric service provided to a |
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facility of a four-year state university, upper-level institution, |
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Texas State Technical College, junior [or] college, independent |
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school district, or open-enrollment charter school. |
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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. The discount shall be provided either directly to an |
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educational entity described by Subsection (a) or to a retail |
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electric provider that also provides service to the educational |
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entity. |
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(b-1) A retail electric provider that receives a discount |
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under Subsection (b) shall apply the discount to an educational |
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entity described by Subsection (a) as a credit in an amount equal to |
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the amount of the discount. The commission may suspend, revoke, or |
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amend the certificate of a retail electric provider that does not |
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apply the discount as required by this subsection. The commission |
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shall impose an administrative penalty on a retail electric |
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provider that does not apply the discount as required by this |
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subsection. |
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(d-1) A municipally owned utility is exempt from the |
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requirement to discount charges for electric service provided to a |
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junior college, independent school district, or open-enrollment |
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charter school. |
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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 educational entity [a state
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university or college] that receives a discount under this section. |
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After September 1, 2013, an investor-owned electric utility is |
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subject to the requirements of this subsection unless a regulatory |
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authority authorizes other ratemaking treatment. |
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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, 2013. |