85R11233 GRM-F
 
  By: Phillips H.B. No. 2346
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to exempting certain customers from certain demand charges
  by transmission and distribution utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.009, Utilities Code, is amended to
  read as follows:
         Sec. 36.009.  BILLING DEMAND FOR CERTAIN UTILITY CUSTOMERS.
  (a)  Notwithstanding any other provision of this code, the
  commission by rule shall require a transmission and distribution
  utility to:
               (1)  waive the application of demand ratchet provisions
  for each nonresidential secondary service customer that has a
  maximum load factor equal to or below a factor set by commission
  rule;
               (2)  implement procedures to verify annually whether
  each nonresidential secondary service customer has a maximum load
  factor that qualifies the customer for the waiver described by
  Subdivision (1);
               (3)  specify in the utility's tariff whether the
  utility's nonresidential secondary service customers that qualify
  for the waiver described by Subdivision (1) are to be billed for
  distribution service charges on the basis of:
                     (A)  kilowatts;
                     (B)  kilowatt-hours; or
                     (C)  kilovolt-amperes; and
               (4)  modify the utility's tariff in the utility's next
  base rate case to implement the waiver described by Subdivision (1)
  and make the specification required by Subdivision (3).
         (b)  For each utility that has not initiated a base rate case
  between May 28, 2011, and September 1, 2017, the commission shall
  initiate before January 1, 2018, a proceeding to modify the
  utility's tariff to implement the waiver described by Subsection
  (a)(1) and make the specification required by Subsection (a)(3).
         SECTION 2.  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, 2017.