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                                                                  H.B. No. 989




AN ACT

relating to recovery of certain transmission investments of 
electric utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter E, Chapter 36, Utilities Code, is 
amended by adding Section 36.209 to read as follows:
	Sec. 36.209.  RECOVERY BY CERTAIN NON-ERCOT UTILITIES OF 
CERTAIN TRANSMISSION COSTS.  (a)  This section applies only to an 
electric utility that operates solely outside of ERCOT in areas of 
this state included in the Southwest Power Pool or the Western 
Electricity Coordinating Council and that owns or operates 
transmission facilities.
	(b)  The commission, after notice and hearing, may allow an 
electric utility to recover on an annual basis its reasonable and 
necessary expenditures for transmission infrastructure improvement 
costs and changes in wholesale transmission charges to the electric 
utility under a tariff approved by a federal regulatory authority 
to the extent that the costs or charges have not otherwise been 
recovered.  The commission may allow the electric utility to 
recover only the costs allocable to retail customers in the state 
and may not allow the electric utility to over-recover costs.
	SECTION 2.  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, 2005.




______________________________              ______________________________
 
   President of the Senate                               Speaker of the House      

	I certify that H.B. No. 989 was passed by the House on April 
29, 2005, by the following vote:  Yeas 137, Nays 4, 2 present, not 
voting; and that the House concurred in Senate amendments to H.B. 
No. 989 on May 26, 2005, by the following vote:  Yeas 138, Nays 6, 2 
present, not voting.

                                                  ______________________________
                                                     Chief Clerk of the House   

	
I certify that H.B. No. 989 was passed by the Senate, with 
amendments, on May 24, 2005, by the following vote:  Yeas 31, Nays 
0.

                                                  ______________________________
                                                      Secretary of the Senate   



APPROVED: __________________                                                
 
                Date                                                         




 
         __________________                                              
 
              Governor