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A BILL TO BE ENTITLED
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AN ACT
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relating to discounted rates for electric service provided to |
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certain political subdivisions. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter H, Chapter 36, Utilities Code, is |
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amended by adding Section 36.3511 to read as follows: |
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Sec. 36.3511. DISCOUNTED RATES FOR PUBLIC SCHOOL DISTRICTS |
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AND OTHER POLITICAL SUBDIVISIONS IN CERTAIN COUNTIES. (a) This |
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section applies only to a facility receiving electric service in a |
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county that is located on the international border and contains a |
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municipality with a population of 500,000 or more. |
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(b) Notwithstanding any other provision of this title, each |
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electric utility and municipally owned utility shall discount |
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charges for electric service provided to a facility of a public |
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school district or other political subdivision that: |
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(1) is authorized to impose an ad valorem tax; or |
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(2) provides public housing. |
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(c) The discount is a 20 percent reduction of the utility's |
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base rates that would otherwise be paid under the applicable |
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tariffed rate. |
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(d) An electric or municipally owned utility is exempt from |
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this section if the 20 percent discount results in a reduction equal |
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to more than one percent of the utility's total annual revenues. |
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(e) An electric utility may not recover from residential |
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customers or any other customer class the assigned and allocated |
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costs of serving a public school district or other political |
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subdivision that receives a discount under this section. |
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(f) Each electric utility shall file tariffs with the |
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commission reflecting the discount required under this section. |
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The initial tariff filing is not a rate change for purposes of |
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Subchapter C. |
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SECTION 2. The changes in law made by this Act apply only to |
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a contract entered into on or after the effective date of this Act. |
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A contract entered into before the effective date of this Act is |
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governed by the law as it existed immediately before the effective |
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date of this Act, and that law is continued in effect for that |
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purpose. |
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SECTION 3. This Act takes effect September 1, 2023. |