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A BILL TO BE ENTITLED
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AN ACT
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Relating to utility facilities for restoring service after |
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widespread outage. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter Z, Chapter 39, Utilities Code, is |
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amended by adding Section 39.918 to read as follows: |
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Sec. 39.918. UTILITY FACILITIES FOR RESTORING SERVICE AFTER |
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WIDESPREAD OUTAGE. (a) In this section, "widespread outage" means |
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any event that results in an electric power outage affecting a |
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significant number of distribution customers of a transmission and |
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distribution utility that results in a risk to the public's safety. |
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(b) Notwithstanding any provision in this subtitle, a |
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transmission and distribution utility may lease or own and operate |
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facilities that provide temporary, emergency electric energy to aid |
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in restoration of service to its own distribution customers during |
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a widespread outage. |
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(c) A transmission and distribution utility may procure and |
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own, or enter into a cooperative agreement with other utilities to |
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jointly procure and own, long lead time facilities that would aid in |
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restoration of electric service for its own distribution customers |
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following a widespread outage. |
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(d) The commission shall permit a transmission and |
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distribution utility that leases or owns and operates facilities |
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under this section to recover the costs of leasing or ownership and |
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operation of the facilities, using the rate of return on investment |
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established in the final order of the utility's most recent base |
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rate proceeding. The commission shall also authorize a utility to |
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defer incremental operations and maintenance expenses associated |
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with the leasing or ownership of the facilities for recovery in a |
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future ratemaking proceeding. A utility may request recovery of |
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the costs of leasing or ownership and operation of the facilities |
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under this section, including any deferred expenses, through a |
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proceeding under Section 26.210 or in another ratemaking |
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proceeding. At the time the utility seeks cost recovery of the |
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facilities, it shall submit an analysis of the costs and benefits of |
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owning versus leasing the facilities, if the facilities are |
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available in the competitive marketplace. |
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SECTION 2. This Act takes effect September 1, 2021. |