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A BILL TO BE ENTITLED
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AN ACT
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relating to the recovery of vegetation management costs by electric |
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utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter E, Chapter 36, Utilities Code, is |
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amended by adding Section 36.2031 to read as follows: |
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Sec. 36.2031. VEGETATION MANAGEMENT COST RECOVERY; |
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ADJUSTMENT OF VEGETATION MANAGEMENT FACTOR. (a) Section 36.201 |
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does not prohibit the commission from reviewing and providing for |
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adjustments of an electric utility's vegetation management factor. |
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(b) The commission by rule shall implement procedures that |
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provide for the timely adjustment of an electric utility's |
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vegetation management factor. The rules must require that the |
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findings required by Section 36.058 regarding vegetation |
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management transactions with affiliated interests be made in a |
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vegetation management reconciliation proceeding or in a rate case |
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filed under Subchapter C or D. The rules must ensure that: |
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(1) the utility collects as contemporaneously as |
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reasonably possible the vegetation management costs that the |
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utility incurs and that the commission determines are eligible; |
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(2) the total of the utility's eligible vegetation |
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management costs, including any under-collected or over-collected |
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amounts to be recovered through an interim adjustment, is allocated |
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among customer classes based on actual historical calendar month |
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usage; |
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(3) any material balance of amounts under-collected or |
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over-collected for eligible vegetation management costs is |
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collected from or refunded to customers through an interim |
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adjustment: |
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(A) not later than the 90th day after the date the |
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balance is accrued; or |
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(B) if the adjustment would result in a total |
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bill increase of 10 percent or more compared to the total bill in |
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the month before implementation, not later than a date ordered by |
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the commission which must be after the 90th day after the date the |
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balance is accrued; and |
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(4) an affected party will receive notice and have the |
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opportunity to request a hearing before the commission. |
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(c) Notwithstanding Subsection (b)(3), on a finding that an |
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electric utility has an under-collected balance that is the result |
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of extraordinary vegetation management costs that are unlikely to |
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continue, the commission may approve an interim vegetation |
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management adjustment that would defer recovery to take place over |
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a period longer than 90 days. |
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(d) The commission is not required to hold a hearing on the |
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adjustment of an electric utility's vegetation management factor |
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under this section. If the commission holds a hearing, the |
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commission may consider at the hearing any evidence that is |
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appropriate and in the public interest. |
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(e) A customer of the electric utility, a municipality with |
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original jurisdiction over the utility, or the office may protest a |
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vegetation management factor or interim adjustment proposed under |
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this section. The prudence of costs may not be considered in a |
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vegetation management factor or interim adjustment proceeding and |
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may only be considered in a vegetation management reconciliation |
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proceeding under Subsection (h) or another appropriate proceeding. |
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(f) The sole issue that may be considered on a protest of a |
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vegetation management factor under Subsection (e) is whether the |
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factor reasonably reflects costs the electric utility will incur so |
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that the utility will not substantially under-collect or |
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over-collect the utility's reasonably stated vegetation management |
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costs on an ongoing basis. The commission may adjust the utility's |
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vegetation management factor based on its determination on that |
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issue. |
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(g) The commission shall hold a hearing on a protest of an |
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interim adjustment under Subsection (e) if the adjustment would |
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result in a total bill increase of 10 percent or more as described |
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by Subsection (b)(3) or if the adjustment results from |
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extraordinary vegetation management costs as described by |
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Subsection (c). In response to a protest of an interim adjustment, |
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if the commission finds that the electric utility is in a state of |
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material under-collection or over-collection of the utility's |
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reasonably stated eligible vegetation management costs and is |
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projected to remain in that state on an ongoing basis, the |
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commission shall order the utility to establish or modify an |
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interim adjustment to address the under-collection or |
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over-collection in a manner consistent with this section. |
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(h) An electric utility shall apply to reconcile the |
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vegetation management costs at least once every two years. The |
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application must be made not later than the 180th day after the last |
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day of the period to be reconciled. The commission may by rule |
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establish the calendar year timing of the reconciliation period for |
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each electric utility subject to this section to facilitate |
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efficient work by the commission. To the extent a reconciliation |
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results in a change to the electric utility's under-collected or |
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over-collected vegetation management balance, that change may be |
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incorporated into an interim adjustment as directed by the |
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commission. |
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(i) A proceeding under this section is not a rate case under |
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Subchapter C. |
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SECTION 2. This Act takes effect September 1, 2025. |