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A BILL TO BE ENTITLED
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AN ACT
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relating to interim rates charged by electric utilities during a |
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rate suspension period. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.062, Utilities Code, is amended to |
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read as follows: |
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Sec. 36.062. CONSIDERATION OF CERTAIN EXPENSES. The |
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regulatory authority may not consider for ratemaking purposes: |
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(1) an expenditure for legislative advocacy, made |
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directly or indirectly, including legislative advocacy expenses |
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included in trade association dues; |
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(2) a payment made to cover costs of an accident, |
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equipment failure, or negligence at a utility facility owned by a |
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person or governmental entity not selling power in this state, |
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other than a payment made under an insurance or risk-sharing |
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arrangement executed before the date of loss; |
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(3) an expenditure for costs of processing a refund or |
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credit under Section 36.1091 [36.110]; or |
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(4) any other expenditure, including an executive |
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salary, advertising expense, legal expense, or civil penalty or |
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fine, the regulatory authority finds to be unreasonable, |
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unnecessary, or not in the public interest. |
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SECTION 2. Subchapter C, Chapter 36, Utilities Code, is |
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amended by adding Section 36.1091 to read as follows: |
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Sec. 36.1091. INTERIM RATES. (a) During a suspension |
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period ordered under Section 36.108, an electric utility may put an |
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interim rate into effect throughout the area in which the utility |
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sought to change its rates. The interim rate may not exceed the |
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proposed rate. |
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(b) An electric utility operating inside ERCOT that |
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implements an interim rate under this section must give notice to |
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each retail electric provider in the utility's service area at |
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least 45 days before the effective date of the interim rate. |
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(c) The electric utility: |
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(1) shall refund or credit against future bills money |
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collected under the interim rates in excess of the rate finally |
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ordered; and |
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(2) may surcharge bills to recover the amount by which |
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the money collected under the interim rates is less than the money |
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that would have been collected under the rate finally ordered. |
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SECTION 3. Section 36.211(b), Utilities Code, is amended to |
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read as follows: |
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(b) In a rate proceeding under Subchapter D, or if requested |
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by an electric utility in the utility's statement of intent |
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initiating a rate proceeding under Subchapter C, notwithstanding |
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Section 36.1091 [36.109(a)], the final rate set in the proceeding, |
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whether a rate increase or rate decrease, shall be made effective |
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for consumption on and after the 155th day after the date the |
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rate-filing package is filed. |
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SECTION 4. Sections 36.109 and 36.110, Utilities Code, are |
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repealed. |
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SECTION 5. The changes in law made by this Act apply only to |
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a rate proceeding initiated on or after the effective date of this |
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Act. A rate proceeding initiated before the effective date of this |
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Act is governed by the law in effect on the date the proceeding was |
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initiated, and the former law is continued in effect for that |
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purpose. |
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SECTION 6. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2025. |