87R17172 CXP-F
 
  By: King of Parker, Harless, Slawson, H.B. No. 2483
      Hernandez, Darby, et al.
 
  Substitute the following for H.B. No. 2483:
 
  By:  Paddie C.S.H.B. No. 2483
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to utility facilities for restoring electric service after
  a widespread power outage.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.918 to read as follows:
         Sec. 39.918.  UTILITY FACILITIES FOR POWER RESTORATION AFTER
  WIDESPREAD POWER OUTAGE. (a) In this section, "widespread power
  outage" means an event that results in:
               (1)  a loss of electric power affecting a significant
  number of distribution customers of a transmission and distribution
  utility; and
               (2)  a risk to public safety.
         (b)  Notwithstanding any other provision of this subtitle, a
  transmission and distribution utility may:
               (1)  lease and operate facilities that provide
  temporary emergency electric energy to aid in restoring power to
  the utility's distribution customers during a widespread power
  outage; and
               (2)  procure, own, and operate, or enter into a
  cooperative agreement with other transmission and distribution
  utilities to procure, own, and operate jointly, long lead time
  facilities that would aid in restoring power to the utility's
  distribution customers following a widespread power outage.
         (c)  A transmission and distribution utility that leases and
  operates facilities under Subsection (b)(1) may not sell electric
  energy or ancillary services from those facilities.
         (d)  A transmission and distribution utility that leases and
  operates facilities under Subsection (b)(1) or that procures, owns,
  and operates facilities under Subsection (b)(2) shall include in
  the utility's emergency operations plan filed with the commission,
  as described by Section 186.007, a detailed plan on the utility's
  use of those facilities.
         (e)  The commission shall permit:
               (1)  a transmission and distribution utility that
  leases and operates facilities under Subsection (b)(1) to recover
  the reasonable and necessary costs of leasing and operating the
  facilities, including the present value of future payments required
  under the lease, using the rate of return on investment established
  in the commission's final order in the utility's most recent base
  rate proceeding; and
               (2)  a transmission and distribution utility that
  procures, owns, and operates facilities under Subsection (b)(2) to
  recover the reasonable and necessary costs of procuring, owning,
  and operating the facilities, using the rate of return on
  investment established in the commission's final order in the
  utility's most recent base rate proceeding.
         (f)  The commission shall authorize a transmission and
  distribution utility to defer for recovery in a future ratemaking
  proceeding the incremental operations and maintenance expenses and
  the return, not otherwise recovered in a rate proceeding,
  associated with the leasing or procurement, ownership, and
  operation of the facilities.
         (g)  A transmission and distribution utility may request
  recovery of the reasonable and necessary costs of leasing or
  procuring, owning, and operating facilities under this section,
  including any deferred expenses, through a proceeding under Section
  36.210 or in another ratemaking proceeding. A lease under
  Subsection (b)(1) must be treated as a capital lease or finance
  lease for ratemaking purposes.
         SECTION 2.  This Act takes effect September 1, 2021.