By: Nichols, Schwertner S.B. No. 1983

A BILL TO BE ENTITLED

AN ACT

relating to charges imposed for costs related to Winter Storm Uri

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 104.361, Utilities Code, is amended by adding Subsection (c) to read as follows:

(c) The legislature finds and declares that Winter Storm Uri constituted a public calamity to this state due to the loss of life, injury, property damage, and widespread disruptions of gas supply, electricity, and utility services caused by prolonged freezing temperatures, heavy snow, and freezing rain statewide.

SECTION 2. Section 104.373, Utilities Code, is amended by adding Subsection (f) to read as follows:

(f) Notwithstanding any other law, a state agency may provide money appropriated for the purpose to the issuing financing entity to pay the aggregate customer rate relief charges authorized by this subchapter on behalf of customers described by Subsection (a).

SECTION 3. Chapter 403, Government Code, is amended by adding Subchapter S to read as follows:

SUBCHAPTER S. STORM COST OFFSET FUND

Sec. 403.601. DEFINITIONS. In this subchapter:

(1) "Electric cooperative" means a corporation organized and operating under Chapter 161, Utilities Code, or a predecessor statute to Chapter 161, Utilities Code, and designated by the legislature to receive a distribution from the storm cost offset fund, or its designated agent.

(2) "Extraordinary costs and expenses" has the meaning assigned by Section 41.152(4), Utilities Code.

(3) "Winter Storm Uri" means the North American winter storm that occurred in February 2021.

Sec. 403.602. PURPOSE. (a) The legislature finds and declares that Winter Storm Uri constituted a public calamity to this state due to the loss of life, injury, property damage, and widespread disruptions of gas supply, electricity, and utility services caused by prolonged freezing temperatures, heavy snow, and freezing rain statewide.

(b) The purpose of this subchapter is to reduce the rates or charges that retail electric service customers would otherwise experience because of extraordinary costs and expenses that electric cooperatives incurred related to Winter Storm Uri and that electric cooperatives seek to recover through temporary or permanent rates or charges.

Sec. 403.603. STORM COST OFFSET FUND. (a) The storm cost offset fund is created as a fund in the state treasury outside the general revenue fund. The fund is composed of:

(1) money transferred to the fund at the direction of the legislature;

(2) gifts and grants contributed to the fund; and

(3) other money required by law to be deposited in the fund.

(b) Money deposited to the credit of the storm cost offset fund must be used for the benefit of retail electric service customers of electric cooperatives designated by the legislature to receive a distribution from the fund. Money received by an electric cooperative, or its designated agent, from the fund may be used only to offset the rates or charges the electric cooperative imposes on its retail electric service customers to recover extraordinary costs and expenses or, for a generation and transmission cooperative, those rates and charges imposed to recover extraordinary costs and expenses from its member electric cooperatives that serve retail electric service customers.

(c) The electric cooperative or its designated agent shall implement an offset of rates or charges on a pro-rata basis to all existing or future retail electric service customers obligated to pay, on or after the date of the first retail electric service invoice following the distribution, a rate or charge related to recovery of the electric cooperative's extraordinary costs and expenses. The offset shall be reflected as a credit on a retail electric service customer's bill.

(d) A generation and transmission cooperative shall implement an offset of rates or charges on a pro-rata basis to all of its member electric cooperatives that receive a rate or charge to recover the generation and transmission cooperative's extraordinary costs and expenses, effective on the first billing date following the distribution from the fund. The offset shall be reflected as a credit on the member electric cooperative's bill.

(e) An electric cooperative that receives an offset pursuant to Subsection (d) shall implement an offset of rates or charges on a pro-rata basis to all existing or future retail electric service customers obligated to pay a rate or charge to recover extraordinary costs and expenses, on or after the date of the first retail electric service invoice following the receipt of an offset from a generation and transmission cooperative. The electric cooperative's offset shall be reflected as a credit on a retail electric service customer's bill.

(f) The comptroller shall promptly distribute money in the fund as directed by the legislature for the benefit of retail electric service customers of designated electric cooperatives or retail electric service customers of the member electric cooperatives of designated electric cooperatives. Distributions received by an electric cooperative from the fund shall be held in trust for the benefit of its retail electric service customers or its member electric cooperatives that are entitled to offsets under this subchapter.

(g) Interest earned on money deposited to the credit of the storm cost offset fund is exempt from Government Code Section 404.071. Interest earned on money in the fund shall be retained in the storm cost offset fund.

(h) An electric cooperative designated by the legislature to receive a distribution from the fund shall cooperate with the comptroller to carry out the purpose of the fund.

(i) An electric cooperative or its designated agent that receives a distribution from the storm cost offset fund shall, by March 1 each calendar year, submit a report to the Legislative Budget Board stating the number of customers that have received an offset to rates or charges, the total dollar amount of offsets provided by the electric cooperative or its designated agent, the amount of money remaining from the distribution, and how any remaining money is being maintained and invested. An electric cooperative or its designated agent shall submit the report for each calendar year that it maintains money distributed from the storm cost offset fund.

Section 403.604. EXPIRATION. (a) This subchapter expires on September 1, 2028 except as provide by (b).

(b) If an electric cooperative that receives a distribution from the storm cost offset fund is holding funds in trust beyond September 1, 2028, the trust fund shall be operated according to Section 403.603(b), (c), (d), (e), (f), (g) and (h) and those provisions shall continue in effect for such purposes.

SECTION 4. 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, 2023.