| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to a financing mechanism allowing electric utilities to |
|
|
obtain recovery of costs associated with a weather-related event or |
|
|
other natural disaster; granting authority to issue bonds. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Section 36.451, Utilities Code, is amended by |
|
|
amending Subsection (b) and adding Subsection (i) to read as |
|
|
follows: |
|
|
(b) The purpose of this subchapter is to make available a |
|
|
lower-cost, supplemental financing mechanism to allow an electric |
|
|
utility [operating solely outside of ERCOT] to obtain timely |
|
|
recovery of system restoration costs under Subchapter I through |
|
|
securitization and the issuance of transition bonds or system |
|
|
restoration bonds by an issuer other than the electric utility or an |
|
|
affiliated special purpose entity. Financing of system restoration |
|
|
costs under this subchapter is a valid and essential public |
|
|
purpose. |
|
|
(i) Notwithstanding Section 36.403(j), an electric utility |
|
|
may apply for securitization and the issuance of system restoration |
|
|
bonds under this subchapter for estimated and actual system |
|
|
restoration costs of $50 million or more in any calendar year. |
|
|
SECTION 2. Section 36.456, Utilities Code, is amended by |
|
|
adding Subsections (b-1), (b-2), and (b-3) to read as follows: |
|
|
(b-1) Notwithstanding Sections 36.405(c) and (d), an |
|
|
electric utility may file an application with the commission under |
|
|
this subchapter for: |
|
|
(1) a determination of the amount of estimated and |
|
|
actual system restoration costs eligible for recovery and |
|
|
securitization; and |
|
|
(2) a financing order that authorizes the |
|
|
securitization of estimated and actual system restoration costs, |
|
|
the issuance of system restoration bonds, and the creation of |
|
|
system restoration charges for the recovery of qualified costs. |
|
|
(b-2) For an application filed under Subsection (b-1), the |
|
|
commission shall issue an order that determines the amount of |
|
|
estimated and actual system restoration costs eligible for recovery |
|
|
and securitization and a financing order that authorizes the |
|
|
securitization of estimated and actual system restoration costs, |
|
|
the issuance of system restoration bonds, and the creation of |
|
|
system restoration charges for the recovery of qualified costs not |
|
|
later than the 150th day after the date the application is filed. |
|
|
(b-3) For an application filed under Subsection (b-1), the |
|
|
estimated system restoration costs shall be subject to true-up and |
|
|
reconciliation and system restoration charges shall be adjusted |
|
|
after the actual system restoration costs are known. |
|
|
SECTION 3. 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, 2025. |