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.