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A BILL TO BE ENTITLED
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AN ACT
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relating to periodic rate adjustment by and to certain transactions |
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involving electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 36, Utilities Code, is |
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amended by adding Section 36.157 to read as follows: |
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Sec. 36.157. RATE REVIEW SCHEDULE. (a) This section |
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applies only to an electric utility, other than a river authority, |
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that operates solely inside ERCOT. |
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(b) Notwithstanding any other provision of this title, not |
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later than June 1, 2018, the commission by rule shall establish a |
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schedule that requires an electric utility to make periodic filings |
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with the commission to modify or review base rates charged by the |
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electric utility. The schedule may be established on the basis of: |
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(1) the period since the commission entered the |
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commission's final order in the electric utility's most recent base |
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rate proceeding; |
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(2) whether the electric utility has earned materially |
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more than the utility's authorized rate of return on equity as |
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demonstrated by earnings monitoring reports; or |
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(3) other criteria that the commission determines is |
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in the public interest. |
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(c) The commission shall extend the date for the proceeding |
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required by Subsection (b) by one year on a year-to-year basis if, |
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180 days before the date the proceeding is required, the electric |
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utility's most recent earnings monitoring report shows the electric |
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utility is earning, on a weather-normalized basis, less than 50 |
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basis points above: |
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(1) for a transmission and distribution utility, the |
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average of the most recent commission-approved rate of return on |
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equity for each transmission and distribution utility with 175,000 |
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or more metered customers; and |
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(2) for a transmission-only utility, the average of |
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the most recent commission-approved rate of return on equity for |
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each transmission-only utility. |
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(d) The commission may extend the date for the proceeding |
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required by Subsection (b) for good cause shown or because of |
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resource constraints of the commission. |
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(e) This section does not limit the ability of a regulatory |
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authority to initiate a base rate proceeding at any time under this |
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title. |
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SECTION 2. Section 36.210, Utilities Code, is amended by |
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amending Subsection (d) and adding Subsection (d-1) to read as |
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follows: |
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(d) Except as provided by Subsection (d-1), an [An] electric |
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utility may adjust the utility's rates under this section not more |
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than once per year and not more than four times between |
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comprehensive base rate proceedings. |
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(d-1) For an electric utility subject to Section 36.157, |
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beginning on the effective date of the schedule adopted by the |
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commission under Section 36.157(b), the electric utility may adjust |
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the utility's rates under this section more than four times between |
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base rate proceedings. |
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SECTION 3. Section 39.262(m), Utilities Code, is amended to |
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read as follows: |
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(m) The commission shall approve a transaction under |
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Subsection (l) if the commission finds that the transaction is in |
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the public interest. In making its determination, the commission |
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shall consider whether the transaction will adversely affect the |
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reliability of service, availability of service, or cost of service |
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of the electric utility or transmission and distribution utility. |
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The commission shall make the determination concerning a |
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transaction under this subsection not later than the 180th day |
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after the date the commission receives the relevant report. The |
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commission may extend the deadline provided by this subsection for |
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not more than 60 days if the commission determines the extension is |
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needed to evaluate additional information, to consider actions |
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taken by other jurisdictions concerning the transaction, to provide |
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for administrative efficiency, or for other good cause. If the |
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commission has not made a determination before the expiration of |
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the deadline provided by or extended under this subsection [181st
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day after that date], the transaction is considered approved. |
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SECTION 4. Section 39.915(b), Utilities Code, is amended to |
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read as follows: |
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(b) The commission shall approve a transaction under |
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Subsection (a) if the commission finds that the transaction is in |
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the public interest. In making its determination, the commission |
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shall consider whether the transaction will adversely affect the |
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reliability of service, availability of service, or cost of service |
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of the electric utility or transmission and distribution utility. |
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The commission shall make the determination concerning a |
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transaction under this subsection not later than the 180th day |
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after the date the commission receives the relevant report. The |
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commission may extend the deadline provided by this subsection for |
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not more than 60 days if the commission determines the extension is |
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needed to evaluate additional information, to consider actions |
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taken by other jurisdictions concerning the transaction, to provide |
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for administrative efficiency, or for other good cause. If the |
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commission has not made a determination before the expiration of |
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the deadline provided by or extended under this subsection [181st
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day after that date], the transaction is considered approved. |
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SECTION 5. Sections 36.210(h), (h-1), and (i), Utilities |
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Code, are repealed. |
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SECTION 6. 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, 2017. |