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A BILL TO BE ENTITLED
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AN ACT
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relating to studies on the rates of electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.210, Utilities Code, is amended by |
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amending Subsections (h) and (i) and adding Subsection (h-1) to |
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read as follows: |
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(h) The commission shall undertake a study and conduct a |
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report analyzing any periodic rate adjustment established under |
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this section. The study shall be available for the legislature's |
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review by January 31, 2019 [2017], so that the legislature may |
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properly be informed as to the need to continue the commission's |
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authority to allow periodic rate adjustments. The report shall |
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contain but shall not be limited to: |
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(1) an analysis of all periodic rate adjustments |
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approved by the commission; |
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(2) an analysis of the amounts in real dollars and |
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percentages of the approved amounts by the commission and the |
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effects on all classes of ratepayers; |
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(3) the costs savings, if any, realized by all parties |
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by utilizing periodic rate adjustment as opposed to ratemaking |
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proceedings; |
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(4) an analysis on distribution costs included in |
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periodic rate adjustments, and their appropriateness for inclusion |
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in periodic rate adjustments; and |
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(5) an analysis submitted by the office on the effects |
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of periodic rate adjustments. |
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(h-1) The commission shall conduct a study and make a report |
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analyzing alternative ratemaking mechanisms adopted by other |
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states and shall make recommendations regarding appropriate |
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reforms to the ratemaking process in this state. The commission |
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shall include in the report an analysis that demonstrates how the |
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commission's recommended reforms would improve the efficiency and |
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effectiveness of the oversight of electric utilities and ensure |
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that electric rates are just and reasonable, as required by this |
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chapter. The commission may retain an independent consultant, at |
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the expense of electric utilities, to conduct the study. The |
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commission shall provide the report to the legislature not later |
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than January 15, 2017. |
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(i) This section expires September [January] 1, 2019 |
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[2017]. |
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SECTION 2. This Act takes effect September 1, 2015. |