By: Frullo, Huberty, Phelan, Deshotel, Otto, H.B. No. 1535
      et al.
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to rates of and certificates of convenience and necessity
  for certain non-ERCOT electric utilities; authorizing a surcharge.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Subchapter C, Chapter 36, Utilities Code, is
  amended by adding Section 36.112 to read as follows:
         Sec. 36.112.  COST RECOVERY AND RATE ADJUSTMENT STANDARDS
  AND PROCEDURES FOR CERTAIN NON-ERCOT UTILITIES. (a) This section
  applies only to an electric utility that operates solely outside of
  ERCOT.
         (b)  In establishing the base rates of the electric utility
  under this subchapter or Subchapter D, the regulatory authority
  shall determine the utility's revenue requirement based on, at the
  election of the utility:
               (1)  information submitted for a test year; or
               (2)  information submitted for a test year, updated to
  include information that reflects the most current actual or
  estimated information regarding increases and decreases in the
  utility's cost of service, including expenses, capital investment,
  cost of capital, and sales.
         (c)  An electric utility that elects to provide updated
  information under Subsection (b)(2) must provide the information
  for a period ending not later than the 30th day before the date the
  applicable rate proceeding is filed.
         (d)  An electric utility that includes estimated information
  in the initial filing of a proceeding shall supplement the filing
  with actual information not later than the 45th day after the date
  the initial filing was made. The regulatory authority shall extend
  the deadline for concluding the rate proceeding for a period of time
  equal to the period between the date the initial filing of the
  proceeding was made and the date of the supplemental filing, except
  that the extension period may not exceed 45 days.
         (e)  An electric utility that makes an election under
  Subsection (b) is not precluded from proposing known and measurable
  adjustments to the utility's historical rate information as
  permitted by this title and regulatory authority rules.
         (f)  Without limiting the availability of known and
  measurable adjustments described by Subsection (e), the regulatory
  authority shall allow an affected electric utility to make a known
  and measurable adjustment to include in the utility's rates the
  prudent capital investment, a reasonable return on such capital
  investment, depreciation expense, reasonable and necessary
  operating expenses, and all attendant impacts, including any
  offsetting revenue, as determined by the regulatory authority,
  associated with a newly constructed or acquired natural gas-fired
  generation facility. The regulatory authority is required to allow
  the adjustment only if the facility is in service before the
  effective date of new rates. The adjustment may be made regardless
  of whether the investment is less than 10 percent of the utility's
  rate base before the date of the adjustment.
         (g)  This section expires September 1, 2023.
         SECTION 2.  Subchapter E, Chapter 36, Utilities Code, is
  amended by adding Section 36.211 to read as follows:
         Sec. 36.211.  RELATION BACK OF RATES FOR CERTAIN NON-ERCOT
  UTILITIES. (a) This section applies only to an electric utility
  that operates solely outside of ERCOT.
         (b)  In a rate proceeding under Subchapter D, or if requested
  by an electric utility in the utility's statement of intent
  initiating a rate proceeding under Subchapter C, notwithstanding
  Section 36.109(a), the final rate set in the proceeding, whether a
  rate increase or rate decrease, shall be made effective for
  consumption on and after the 155th day after the date the
  rate-filing package is filed.
         (c)  The regulatory authority shall:
               (1)  require the electric utility to refund to
  customers money collected in excess of the rate finally ordered on
  or after the 155th day after the date the rate-filing package is
  filed; or
               (2)  authorize the electric utility to surcharge bills
  to recover the amount by which the money collected on or after the
  155th day after the date the rate-filing package is filed is less
  than the money that would have been collected under the rate finally
  ordered.
         (d)  The regulatory authority may require refunds or
  surcharges of amounts determined under Subsection (c) over a period
  not to exceed 18 months, along with appropriate carrying costs. The
  regulatory authority shall make any adjustments necessary to
  prevent over-recovery of amounts reflected in riders in effect for
  the electric utility during the pendency of the rate proceeding.
         (e)  A utility may not assess more than one surcharge
  authorized by Subsection (c)(2) at the same time.
         (f)  This section expires September 1, 2023.
         SECTION 3.
    Subchapter E, Chapter 36, Utilities Code, is
  amended by adding Section 36.212 to read as follows:
         Sec. 36.212.  RATE CASE REQUIREMENT FOR CERTAIN NON-ERCOT
  UTILITIES. (a) This section applies only to an electric utility
  that operates solely outside of ERCOT.
         (b)  The commission shall require an electric utility to make
  the filings with regulatory authorities required by Subchapter B,
  Chapter 33, and to file a rate-filing package under Subchapter D
  with the commission to initiate a comprehensive base rate
  proceeding before all of the utility's regulatory authorities:
               (1)  on or before the fourth anniversary of the date of
  the final order in the electric utility's most recent comprehensive
  base rate proceeding; or
               (2)  if, before the anniversary described by
  Subdivision (1), the electric utility earns materially more than
  the utility's authorized rate of return on investment, on a
  weather-normalized basis, in the utility's two most recent
  consecutive commission earnings monitoring reports.
         (c)  The electric utility must make the filings described by
  Subsection (b) not later than the 120th day after the date the
  commission notifies the utility of the requirement described by
  Subsection (b). The 120-day period may be extended in the manner
  provided by Section 36.153(b).
         (d)  The commission may extend the time period described by
  Subsection (b)(1) and set a new deadline if the commission
  determines that a comprehensive base rate case would not result in
  materially different rates. The commission shall give interested
  parties a reasonable opportunity to present materials and argument
  before making a determination under this subsection.
         (e)  The commission shall adopt rules implementing this
  section, including appropriate notice and scheduling requirements.
         (f)  This section does not limit the authority of a
  regulatory authority under Subchapter D.
         (g)  This section expires September 1, 2023.
         SECTION 4.  Subchapter B, Chapter 37, Utilities Code, is
  amended by adding Section 37.058 to read as follows:
         Sec. 37.058.  CERTIFICATE AND DETERMINATION ISSUED TO
  CERTAIN NON-ERCOT UTILITIES FOR GENERATING FACILITY. (a) This
  section applies only to an electric utility that operates solely
  outside of ERCOT.
         (b)  An electric utility may file with the commission a
  request that the commission:
               (1)  grant a certificate for an electric generating
  facility;
               (2)  make a public interest determination for the
  purchase of an existing electric generating facility under Section
  14.101; or
               (3)  both grant a certificate and make a determination.
         (c)  Notwithstanding any other law, in a proceeding
  involving the purchase of an existing electric generating facility,
  the commission shall issue a final order on a certificate for the
  facility or making a determination on the facility required by
  Section 14.101, as applicable, not later than the 181st day after
  the date a request for the certificate or determination is filed
  with the commission under Subsection (b). For generating facilities
  granted a certificate under this subsection, notwithstanding
  Section 36.053, the utility's recoverable invested capital
  included in rates shall be determined by the commission.
         (d)  Notwithstanding any other law, in a proceeding
  involving a newly constructed generating facility, the commission
  shall issue a final order on a certificate for the facility not
  later than the 366th day after the date a request for the
  certificate is filed with the commission under Subsection (b).
         SECTION 5.  The changes in law made by this Act are not
  intended to affect the exercise of municipal jurisdiction under
  Chapter 33, Utilities Code.
         SECTION 6.  The changes in law made by this Act apply only to
  a proceeding before the Public Utility Commission of Texas or other
  regulatory authority described by Section 11.003, Utilities Code,
  that commences on or after the effective date of this Act. A
  proceeding before the Public Utility Commission of Texas or other
  regulatory authority described by Section 11.003, Utilities Code,
  that commenced before the effective date of this Act is governed by
  the law in effect on the date the proceeding commenced, and that law
  is continued in effect for that purpose.
         SECTION 7.  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, 2015.