H.B. No. 1397
 
 
 
 
AN ACT
  relating to the establishment of rates for certain non-ERCOT
  utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.112(g), Utilities Code, is amended to
  read as follows:
         (g)  This section expires September 1, 2031 [2023].
         SECTION 2.  Section 36.211(f), Utilities Code, is amended to
  read as follows:
         (f)  This section expires September 1, 2031 [2023].
         SECTION 3.  Section 36.212(g), Utilities Code, is amended to
  read as follows:
         (g)  This section expires September 1, 2031 [2023].
         SECTION 4.  Subchapter E, Chapter 36, Utilities Code, is
  amended by adding Section 36.213 to read as follows:
         Sec. 36.213.  RECOVERY OF GENERATION INVESTMENT BY NON-ERCOT
  UTILITIES.  (a)  This section applies only to an electric utility
  that operates solely outside of ERCOT.
         (b)  An electric utility may file, and the commission may
  approve, an application for a rider to recover the electric
  utility's investment in a power generation facility.
         (c)  An application under Subsection (b) may be filed by the
  electric utility and approved by the commission before the electric
  utility places the power generation facility in service.
         (d)  Any rider approved under Subsection (b) shall take
  effect on the date the power generation facility begins providing
  service to the electric utility's customers.
         (e)  Amounts recovered through a rider approved under
  Subsection (b) are subject to reconciliation in the first
  comprehensive base rate proceeding for the electric utility that
  occurs after approval of the rider. During the reconciliation, the
  commission shall determine if the amounts recovered through the
  rider are reasonable and necessary.
         (f)  If a rider approved under Subsection (b) includes
  incremental recovery for a power generation facility greater than
  $200 million on a Texas jurisdictional basis
  , the electric utility
  that filed the rider shall initiate a comprehensive base rate
  proceeding at the commission not later than 18 months after the date
  the rider takes effect.
         (g)  The commission shall adopt rules as necessary to
  implement this section.
         (h)  This section expires September 1, 2031.
         SECTION 5.  Not later than September 1, 2020, the Public
  Utility Commission of Texas shall adopt rules required by Section
  36.213(g), Utilities Code, as added by this Act.
         SECTION 6.  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, 2019.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 1397 was passed by the House on April
  5, 2019, by the following vote:  Yeas 141, Nays 1, 2 present, not
  voting; that the House concurred in Senate amendments to H.B. No.
  1397 on May 24, 2019, by the following vote:  Yeas 142, Nays 0, 2
  present, not voting; and that the House adopted H.C.R. No. 184
  authorizing certain corrections in H.B. No. 1397 on May 24, 2019, by
  the following vote: Yeas 141, Nays 0, 2 present, not voting.
 
  ______________________________
  Chief Clerk of the House   
 
         I certify that H.B. No. 1397 was passed by the Senate, with
  amendments, on May 8, 2019, by the following vote:  Yeas 30, Nays 1;
  and that the Senate adopted H.C.R. No. 184 authorizing certain
  corrections in H.B. No. 1397 on May 26, 2019, by the following vote:
  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate   
  APPROVED: __________________
                  Date       
   
           __________________
                Governor