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A BILL TO BE ENTITLED
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AN ACT
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relating to the management and removal of vegetation and debris by |
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certain electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 38, Utilities Code, is amended by adding |
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Subchapter G to read as follows: |
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SUBCHAPTER G. VEGETATION MANAGEMENT AND DEBRIS REMOVAL |
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Sec. 38.251. DEFINITIONS. In this subchapter: |
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(1) "First tier coastal county" has the meaning |
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assigned by Section 2210.003, Insurance Code. |
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(2) "Vegetation management" includes the trimming, |
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removal, relocation, or prevention of growth of trees, shrubs, or |
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other vegetation located inside or outside of a right-of-way or an |
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easement. |
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Sec. 38.252. EMERGENCY OPERATIONS PLAN REQUIREMENTS. An |
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electric utility that serves a portion of a first tier coastal |
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county or that is determined by the commission to serve an area of |
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this state with high flood risk shall include in the utility's |
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emergency operations plan: |
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(1) a vegetation management plan for the utility's |
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transmission and distribution system; and |
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(2) processes for the removal of debris from a |
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right-of-way or easement used by the utility after a natural |
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disaster. |
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Sec. 38.253. VEGETATION MANAGEMENT PLAN. (a) A vegetation |
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management plan required by Section 38.252(1) must: |
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(1) explain the processes for implementing the plan; |
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(2) detail the number of miles expected to be trimmed |
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on the electric utility's transmission and distribution system; and |
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(3) include the estimated costs of implementing the |
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plan by year. |
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(b) The commission shall review a vegetation management |
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plan required by Section 38.252(1) and issue an order to approve, |
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modify, or deny the plan not later than the 180th day after the date |
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the plan is filed with the commission. The commission may approve |
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the plan only if the commission determines that approving the plan |
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is in the public interest. |
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(c) A proceeding under this section is not a rate proceeding |
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under Chapter 36. |
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(d) An electric utility may conduct vegetation management |
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that exceeds the amount of vegetation management authorized in the |
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utility's approved vegetation management plan and request recovery |
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of those excess vegetation management costs under Section |
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38.254(b). |
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Sec. 38.254. VEGETATION MANAGEMENT PLAN COST RECOVERY. (a) |
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An electric utility may recover vegetation management plan costs |
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for the utility's distribution system through a vegetation |
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management cost recovery factor if reviewed and approved in the |
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plan proceeding under Section 38.253. For purposes of the |
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vegetation management cost recovery factor, the electric utility |
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shall: |
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(1) establish the distribution system vegetation |
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management plan costs the utility seeks to collect in the proposed |
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factor; |
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(2) ensure that distribution system vegetation |
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management plan costs that are being recovered through the |
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utility's approved base rates are not included in the proposed |
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factor; |
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(3) propose an allocation of distribution system |
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vegetation management costs among rate classes consistent with the |
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manner in which costs of that kind were allocated in accordance with |
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the utility's most recent comprehensive base rate proceeding; and |
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(4) exclude any costs for distribution system |
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vegetation management included in a resiliency plan approved by the |
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commission under Section 38.079. |
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(b) An electric utility shall annually submit for the |
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commission's approval a proposed adjustment to the utility's |
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vegetation management cost recovery factor. The proposed |
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adjustment must: |
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(1) reflect any increase or decrease in projected |
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estimated annual costs that were included in an approved vegetation |
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management plan or previous distribution system vegetation |
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management cost recovery factor; |
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(2) reflect any over-collected or under-collected |
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actual costs from the preceding year, including carrying costs at |
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the weighted average cost of capital approved by the commission in |
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the electric utility's most recent comprehensive base rate |
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proceeding; |
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(3) be accompanied by a report that summarizes the |
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utility's actual distribution system vegetation management costs |
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for the preceding year; and |
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(4) exclude any costs for distribution system |
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vegetation management included in a resiliency plan approved by the |
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commission under Section 38.079. |
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(c) The commission may not hold a hearing on the adjustment |
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of a vegetation management cost recovery factor under Subsection |
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(b). The commission shall review an electric utility's actual |
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distribution system vegetation management costs for the preceding |
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year to determine the appropriate adjustment. An interested party, |
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including the office, may provide to the commission comments on |
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whether the factor reasonably reflects the annual costs associated |
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with the electric utility's distribution system vegetation |
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management plan and any over-collected or under-collected amounts |
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from the preceding year. |
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(d) The commission shall issue an order on a proposed |
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adjustment of a vegetation management cost recovery factor under |
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Subsection (b) not later than the 90th day after the date the |
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proposed adjustment is filed with the commission. |
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(e) An electric utility may defer for future recovery as a |
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regulatory asset all or a portion of the vegetation management plan |
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costs for the utility's transmission system that are not being |
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recovered through the utility's approved base rates, including |
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carrying costs at the utility's weighted average cost of capital |
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established in the commission's final order in the utility's most |
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recent base rate proceeding, and use commission-authorized cost |
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recovery alternatives or another general rate proceeding. |
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(f) A proceeding under this section is not a rate proceeding |
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under Chapter 36. |
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Sec. 38.255. RECOVERY OF CERTAIN DEBRIS REMOVAL COSTS. An |
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electric utility described by Section 38.252 that incurs costs to |
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remove debris caused by a natural disaster may defer all or a |
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portion of the costs that are not being recovered through the |
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utility's approved base rates for future recovery as a regulatory |
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asset, including carrying costs at the utility's weighted average |
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cost of capital established in the commission's final order in the |
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utility's most recent base rate proceeding and use |
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commission-authorized cost recovery alternatives or another |
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general rate proceeding. |
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SECTION 2. This Act takes effect on the 91st day after the |
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last day of the legislative session. |