87R12015 BRG-D
 
  By: J. Johnson of Harris H.B. No. 3076
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to establishing the system benefit account and programs
  for providing assistance to certain low-income, ill, and disabled
  electric customers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 403.0956, Government Code, is amended to
  read as follows:
         Sec. 403.0956.  REALLOCATION OF INTEREST ACCRUED ON CERTAIN
  DEDICATED REVENUE.  Notwithstanding any other law, all interest or
  other earnings that accrue on all revenue held in an account in the
  general revenue fund any part of which Section 403.095 makes
  available for certification under Section 403.121 are available for
  any general governmental purpose, and the comptroller shall deposit
  the interest and earnings to the credit of the general revenue
  fund.  This section does not apply to:
               (1)  interest or earnings on revenue deposited in
  accordance with Section 51.008, Education Code;
               (2)  an account that accrues interest or other earnings
  on deposits of state or federal money the diversion of which is
  specifically excluded by federal law;
               (3)  the lifetime license endowment account;
               (4)  the game, fish, and water safety account;
               (5)  the coastal protection account;
               (6)  the Alamo complex account; [or]
               (7)  the artificial reef account; or
               (8)  the system benefit account.
         SECTION 2.  Section 39.002, Utilities Code, is amended to
  read as follows:
         Sec. 39.002.  APPLICABILITY. This chapter, other than
  Sections 39.1516, 39.155, 39.157(e), 39.203, 39.903, 39.904,
  39.9051, 39.9052, and 39.914(e), does not apply to a municipally
  owned utility or an electric cooperative. Sections 39.157(e),
  39.203, and 39.904, however, apply only to a municipally owned
  utility or an electric cooperative that is offering customer
  choice. If there is a conflict between the specific provisions of
  this chapter and any other provisions of this title, except for
  Chapters 40 and 41, the provisions of this chapter control.
         SECTION 3.  Section 39.352(g), Utilities Code, is amended to
  read as follows:
         (g)  If a retail electric provider serves an aggregate load
  in excess of 300 megawatts within this state, not less than five
  percent of the load in megawatt hours must consist of residential
  customers. This requirement applies to an affiliated retail
  electric provider only with respect to load served outside of the
  electric utility's service area, and, in relation to that load, the
  affiliated retail electric provider shall meet the requirements of
  this subsection by serving residential customers outside of the
  electric utility's service area. For the purpose of this
  subsection, the load served by retail electric providers that are
  under common ownership shall be combined. A retail electric
  provider may meet the requirements of this subsection by
  demonstrating on an annual basis that it serves residential load
  amounting to five percent of its total load, [or] by demonstrating
  that another retail electric provider serves sufficient qualifying
  residential load on its behalf, or by paying an amount into the
  system benefit account equal to $1 multiplied by a number equal to
  the difference between the number of megawatt hours it sold to
  residential customers and the number of megawatt hours it was
  required to sell to such customers, or in the case of an affiliated
  retail electric provider, $1 multiplied by a number equal to the
  difference between the number of megawatt hours sold to residential
  customers outside of the electric utility's service area and the
  number of megawatt hours it was required to sell to such customers
  outside of the electric utility's service area. Qualifying
  residential load may not include customers served by an affiliated
  retail electric provider in its own service area. Each retail
  electric provider shall file reports with the commission that are
  necessary to implement this subsection. This subsection applies for
  36 months after retail competition begins. The commission shall
  adopt rules to implement this subsection.
         SECTION 4.  Subchapter Z, Chapter 39, Utilities Code, is
  amended by adding Section 39.903 to read as follows:
         Sec. 39.903.  SYSTEM BENEFIT ACCOUNT. (a) The system
  benefit account is an account in the general revenue fund. Money in
  the account may be appropriated only for the purposes provided by
  this section. Interest earned on the system benefit account shall
  be credited to the account. Section 404.071, Government Code, does
  not apply to the account.
         (b)  The system benefit account is financed by a
  nonbypassable fee set by the commission in an amount not to exceed
  65 cents per megawatt hour. The fee is allocated to customers based
  on the amount of kilowatt hours used.
         (c)  The nonbypassable fee may not be imposed on the retail
  electric customers of a municipally owned utility or electric
  cooperative before the sixth month preceding the date on which the
  utility or cooperative implements customer choice. Money
  distributed from the system benefit account to a municipally owned
  utility or an electric cooperative shall be proportional to the
  nonbypassable fee paid by the municipally owned utility or the
  electric cooperative, subject to the reimbursement provided by
  Subsection (i). On request by a municipally owned utility or
  electric cooperative, the commission shall reduce the
  nonbypassable fee imposed on retail electric customers served by
  the municipally owned utility or electric cooperative by an amount
  equal to the amount provided by the municipally owned utility or
  electric cooperative or its ratepayers for local low-income
  programs and local programs that educate customers about the retail
  electric market in a neutral and nonpromotional manner.
         (d)  The commission annually shall review and approve the
  system benefit account, projected revenue requirements, and
  proposed nonbypassable fees. 
         (e)  Money in the system benefit account may be appropriated
  to provide funding only for the following regulatory purposes, in
  the following order of priority:
               (1)  programs to:
                     (A)  assist low-income electric customers by
  providing the 10 percent reduced rate prescribed by Subsection (h);
  and
                     (B)  provide one-time bill payment assistance to
  electric customers who are or who have in their households one or
  more seriously ill or disabled low-income persons and who have been
  threatened with disconnection for nonpayment;
               (2)  customer education programs, administrative
  expenses incurred by the commission in implementing and
  administering this chapter, and expenses incurred by the office
  under this chapter;
               (3)  programs to assist low-income electric customers
  by providing the targeted energy efficiency programs described by
  Subsection (f)(2);
               (4)  programs to assist low-income electric customers
  by providing the 20 percent reduced rate prescribed by Subsection
  (h); and
               (5)  reimbursement to the commission and the Health and
  Human Services Commission for expenses incurred in the
  implementation and administration of an automatic process for
  identifying low-income customers to retail electric providers
  created under Section 17.007 for customer service discounts
  relating to retail electric service, including outreach expenses
  the commission determines are reasonable and necessary.
         (f)  Notwithstanding Section 39.106(b), the commission shall
  adopt rules regarding programs to assist low-income electric
  customers on the introduction of customer choice. The programs may
  not be targeted to areas served by municipally owned utilities or
  electric cooperatives that have not adopted customer choice. The
  programs shall include:
               (1)  reduced electric rates as provided by Subsections
  (h)-(l); and
               (2)  targeted energy efficiency programs to be
  administered by the Texas Department of Housing and Community
  Affairs in coordination with existing weatherization programs.
         (g)  Until customer choice is introduced in a power region,
  an electric utility may not reduce, in any manner, programs already
  offered to assist low-income electric customers.
         (h)  The commission shall adopt rules for a retail electric
  provider to determine a reduced rate for eligible customers to be
  discounted off the standard retail service package as approved by
  the commission under Section 39.106, or the price to beat
  established by Section 39.202, whichever is lower. Municipally
  owned utilities and electric cooperatives shall establish a reduced
  rate for eligible customers to be discounted off the standard
  retail service package established under Section 40.053 or 41.053,
  as appropriate. The reduced rate for a retail electric provider
  shall result in a total charge that is at least 10 percent lower
  than the amount the customer would otherwise be charged and, if
  sufficient money in the system benefit account is available, up to
  20 percent lower than that amount. To the extent the system benefit
  account is insufficient to provide for the initial 10 percent rate
  reduction, the commission may increase the fee to an amount not more
  than 65 cents per megawatt hour, as provided by Subsection (b). If
  the fee is set at 65 cents per megawatt hour or if the commission
  determines that appropriations are insufficient to provide for the
  10 percent rate reduction, the commission may reduce the rate
  reduction to less than 10 percent. For a municipally owned utility
  or electric cooperative, the reduced rate must be equal to an amount
  that can be fully funded by that portion of the nonbypassable fee
  proceeds paid by the municipally owned utility or electric
  cooperative that is allocated to the utility or cooperative by the
  commission under Subsection (e) for programs for low-income
  customers of the utility or cooperative. The reduced rate for
  municipally owned utilities and electric cooperatives under this
  section is in addition to any rate reduction that may result from
  local programs for low-income customers of the municipally owned
  utilities or electric cooperatives.
         (i)  A retail electric provider, municipally owned utility,
  or electric cooperative seeking reimbursement from the system
  benefit account may not charge an eligible low-income customer a
  rate higher than the appropriate rate determined under Subsection
  (h). A retail electric provider not subject to the price to beat, or
  a municipally owned utility or electric cooperative subject to the
  nonbypassable fee under Subsection (c), shall be reimbursed from
  the account for the difference between the reduced rate and the rate
  established under Section 39.106 or, as appropriate, the rate
  established under Section 40.053 or 41.053. A retail electric
  provider who is subject to the price to beat shall be reimbursed
  from the account for the difference between the reduced rate and the
  price to beat. The commission shall adopt rules providing for the
  reimbursement.
         (j)  The commission shall adopt rules providing for methods
  of enrolling customers eligible to receive reduced rates under
  Subsection (h). The rules must provide for automatic enrollment as
  one enrollment option. The Health and Human Services Commission, on
  request of the Public Utility Commission of Texas, shall assist in
  the adoption and implementation of these rules. The Public Utility
  Commission of Texas and the Health and Human Services Commission
  shall enter into a memorandum of understanding establishing the
  respective duties of the Public Utility Commission of Texas and the
  Health and Human Services Commission in relation to the automatic
  enrollment.
         (j-1)  The commission shall adopt rules governing the bill
  payment assistance program provided under Subsection (e)(1)(B).
  The rules must provide that a customer is eligible to receive the
  assistance only if the assistance is necessary to prevent the
  disconnection of service for nonpayment of bills and the electric
  customer is or has in the customer's household one or more seriously
  ill or disabled low-income persons whose health or safety may be
  injured by the disconnection. The commission may prescribe the
  documentation necessary to demonstrate eligibility for the
  assistance and may establish additional eligibility criteria. The
  Health and Human Services Commission, on request of the commission,
  shall assist in the adoption and implementation of these rules.
         (k)  A retail electric provider is prohibited from charging
  the customer a fee for participation in the reduced rate program.
         (l)  For the purposes of this section, a "low-income electric
  customer" is an electric customer:
               (1)  whose household income is not more than 125
  percent of the federal poverty guidelines; or
               (2)  who receives food stamps from the Health and Human
  Services Commission or medical assistance from a state agency
  administering a part of the medical assistance program.
         SECTION 5.  Section 39.905(f), Utilities Code, is amended to
  read as follows:
         (f)  Unless funding is provided under Section 39.903, each
  [Each] unbundled transmission and distribution utility shall
  include in its energy efficiency plan a targeted low-income energy
  efficiency program as described by Section 39.903(f)(2), and the
  savings achieved by the program shall count toward the transmission
  and distribution utility's energy efficiency goal. The commission
  shall determine the appropriate level of funding to be allocated to
  both targeted and standard offer low-income energy efficiency
  programs in each unbundled transmission and distribution utility
  service area. The level of funding for low-income energy efficiency
  programs shall be provided from money approved by the commission
  for the transmission and distribution utility's energy efficiency
  programs. The commission shall ensure that annual expenditures for
  the targeted low-income energy efficiency programs of each
  unbundled transmission and distribution utility are not less than
  10 percent of the transmission and distribution utility's energy
  efficiency budget for the year. A targeted low-income energy
  efficiency program must comply with the same audit requirements
  that apply to federal weatherization subrecipients. In an energy
  efficiency cost recovery factor proceeding related to expenditures
  under this subsection, the commission shall make findings of fact
  regarding whether the utility meets requirements imposed under this
  subsection. The state agency that administers the federal
  weatherization assistance program shall participate in energy
  efficiency cost recovery factor proceedings related to
  expenditures under this subsection to ensure that targeted
  low-income weatherization programs are consistent with federal
  weatherization programs and adequately funded.
         SECTION 6.  Section 40.001(a), Utilities Code, is amended to
  read as follows:
         (a)  Notwithstanding any other provision of law, except
  Sections 39.155, 39.157(e), 39.203, 39.903, and 39.904, this
  chapter governs the transition to and the establishment of a fully
  competitive electric power industry for municipally owned
  utilities. With respect to the regulation of municipally owned
  utilities, this chapter controls over any other provision of this
  title, except for sections in which the term "municipally owned
  utility" is specifically used.
         SECTION 7.  Section 40.004, Utilities Code, is amended to
  read as follows:
         Sec. 40.004.  JURISDICTION OF COMMISSION. Except as
  specifically otherwise provided in this chapter, the commission has
  jurisdiction over municipally owned utilities only for the
  following purposes:
               (1)  to regulate wholesale transmission rates and
  service, including terms of access, to the extent provided by
  Subchapter A, Chapter 35;
               (2)  to regulate certification of retail service areas
  to the extent provided by Chapter 37;
               (3)  to regulate rates on appeal under Subchapters D
  and E, Chapter 33, subject to Section 40.051(c);
               (4)  to establish a code of conduct as provided by
  Section 39.157(e) applicable to anticompetitive activities and to
  affiliate activities limited to structurally unbundled affiliates
  of municipally owned utilities, subject to Section 40.054;
               (5)  to establish terms and conditions for open access
  to transmission and distribution facilities for municipally owned
  utilities providing customer choice, as provided by Section 39.203;
               (6)  to require collection of the nonbypassable fee
  established under Section 39.903(b) and to administer the renewable
  energy credits program under Section 39.904(b) and the natural gas
  energy credits program under Section 39.9044(b);
               (7)  to require reports of municipally owned utility
  operations only to the extent necessary to:
                     (A)  enable the commission to determine the
  aggregate load and energy requirements of the state and the
  resources available to serve that load; or
                     (B)  enable the commission to determine
  information relating to market power as provided by Section 39.155;
  and
               (8)  to evaluate and monitor the cybersecurity
  preparedness of a municipally owned utility described by Section
  39.1516(a)(3) or (4).
         SECTION 8.  Section 41.001, Utilities Code, is amended to
  read as follows:
         Sec. 41.001.  APPLICABLE LAW. Notwithstanding any other
  provision of law, except Sections 39.155, 39.157(e), 39.203,
  39.903, and 39.904, this chapter governs the transition to and the
  establishment of a fully competitive electric power industry for
  electric cooperatives. Regarding the regulation of electric
  cooperatives, this chapter shall control over any other provision
  of this title, except for sections in which the term "electric
  cooperative" is specifically used.
         SECTION 9.  This Act takes effect September 1, 2021.