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A BILL TO BE ENTITLED
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AN ACT
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relating to the procedure for a periodic rate adjustment by an |
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electric utility. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 36.210(a) and (i), Utilities Code, are |
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amended to read as follows: |
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(a) The commission, on the petition of an electric utility, |
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may approve a tariff or rate schedule in which a nonfuel rate may be |
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periodically adjusted upward or downward, based on changes in the |
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parts of the utility's invested capital, as described by Section |
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36.053, that are categorized or functionalized as distribution |
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plant, distribution-related intangible plant, and |
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distribution-related communication equipment and networks in |
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accordance with commission rules adopted after consideration of the |
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uniform system of accounts prescribed by the Federal Energy |
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Regulatory Commission. A periodic rate adjustment must: |
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(1) be approved or denied in accordance with a |
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procedure that: |
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(A) allows for participation by the office and |
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affected parties; and |
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(B) extends for 90 days, except as provided by |
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Subsection (i); |
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(2) take into account changes in the number of an |
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electric utility's customers and the effects, on a |
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weather-normalized basis, that energy consumption and energy |
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demand have on the amount of revenue recovered through the electric |
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utility's base rates; |
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(3) be consistent with the manner in which costs for |
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invested capital described by this subsection were allocated to |
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each rate class, as approved by the commission, in an electric |
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utility's most recent base rate statement of intent proceeding with |
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changes to residential and commercial class rates reflected in |
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volumetric charges to the extent that residential and commercial |
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class rates are collected in that manner based on the electric |
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utility's most recent base rate statement of intent proceeding; |
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(4) not diminish the ability of the commission or a |
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regulatory authority, on its own motion or on complaint by an |
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affected person as provided by Subchapter D, after reasonable |
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notice and hearing, to change the existing rates of an electric |
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utility for a service after finding that the rates are unreasonable |
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or in violation of law; |
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(5) be applied by an electric utility on a system-wide |
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basis; and |
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(6) be supported by the sworn statement of an |
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appropriate employee of the electric utility that affirms that: |
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(A) the filing is in compliance with the |
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provisions of the tariff or rate schedule; and |
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(B) the filing is true and correct to the best of |
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the employee's knowledge, information, and belief. |
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(i) The commission shall enter a final order on a request |
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for a periodic rate adjustment under this section not later than the |
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90th [60th] day after the date the request is filed. The commission |
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may extend the deadline for not more than 15 days for good cause. |
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SECTION 2. The changes in law made by this Act apply only to |
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a proceeding before the Public Utility Commission of Texas or other |
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regulatory authority described by Section 11.003, Utilities Code, |
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that commences on or after the effective date of this Act. A |
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proceeding before the Public Utility Commission of Texas or other |
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regulatory authority described by Section 11.003, Utilities Code, |
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that commenced before the effective date of this Act is governed by |
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the law in effect on the date the proceeding commenced, and that law |
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is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2025. |