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A BILL TO BE ENTITLED
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AN ACT
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relating to rates of and certificates of convenience and necessity |
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for certain non-ERCOT electric utilities; authorizing a surcharge. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 36, Utilities Code, is |
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amended by adding Section 36.112 to read as follows: |
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Sec. 36.112. COST RECOVERY AND RATE ADJUSTMENT STANDARDS |
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AND PROCEDURES FOR CERTAIN NON-ERCOT UTILITIES. (a) This section |
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applies only to an electric utility that operates solely outside of |
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ERCOT. |
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(b) In establishing the base rates of the electric utility |
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under this subchapter or Subchapter D, the regulatory authority |
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shall determine the utility's revenue requirement based on, at the |
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election of the utility: |
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(1) information submitted for a test year; or |
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(2) information submitted for a test year, updated to |
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include information that reflects the most current actual or |
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estimated information regarding increases or decreases in the |
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utility's cost of service, including expenses, capital investment, |
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cost of capital, and sales. |
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(c) An electric utility that elects to provide updated |
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information under Subsection (b)(2) must provide the information |
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for a period ending not later than the 30th day before the date the |
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applicable rate proceeding is filed. |
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(d) An electric utility that includes estimated information |
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in the initial filing of a proceeding shall supplement the filing |
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with actual information not later than the 45th day after the date |
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the initial filing was made. The regulatory authority shall extend |
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the deadline for concluding the rate proceeding for a period of time |
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equal to the period between the date the initial filing of the |
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proceeding was made and the date of the supplemental filing, except |
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that the extension period may not exceed 45 days. |
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(e) An electric utility that makes an election under |
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Subsection (b) is not precluded from proposing other known and |
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measurable adjustments to the utility's historical rate |
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information as permitted by this title and commission rules, |
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including all attendant impacts on the utility's cost of service as |
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determined by the commission. |
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(f) Without limiting the availability of known and |
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measurable adjustments described by Subsection (e), the regulatory |
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authority shall allow an affected electric utility to make a known |
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and measurable adjustment to include in the utility's rates the |
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prudent capital investment, a reasonable return on such capital |
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investment, depreciation expense, reasonable and necessary |
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operating expenses, and all attendant impacts, including any |
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applicable load growth, as determined by the commission, associated |
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with a newly constructed or acquired natural gas-fired generation |
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facility. The regulatory authority is only required to allow the |
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adjustment if the facility is in service before the date new rates |
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begin to be billed to the customers of the utility, regardless of |
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whether the investment is less than 10 percent of the utility's rate |
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base before the date of the adjustment. |
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(g) In a rate proceeding authorized by this subchapter, |
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notwithstanding Section 36.109(a), the final rate set in the |
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proceeding shall be made effective for consumption on and after the |
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45th day after the date the electric utility filed to initiate the |
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rate proceeding. The regulatory authority shall: |
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(1) require the electric utility to refund to |
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customers money collected in excess of the rate finally ordered on |
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or after the 45th day after the date the electric utility filed to |
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initiate the rate proceeding; or |
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(2) authorize the electric utility to surcharge bills |
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to recover the amount by which the money collected on or after the |
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45th day after the date the utility filed to initiate the rate |
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proceeding is less than the money that would have been collected |
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under the rate finally ordered. |
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(h) The regulatory authority may require recovery of |
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amounts determined under Subsection (g) over a period not to exceed |
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18 months, along with appropriate carrying costs. The regulatory |
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authority shall make any adjustments necessary to prevent |
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over-recovery of amounts reflected in riders in effect for the |
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electric utility during the pendency of the rate proceeding. |
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(i) A utility may not assess more than one surcharge |
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authorized by Subsection (g) at the same time. |
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SECTION 2. Subchapter B, Chapter 37, Utilities Code, is |
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amended by adding Section 37.058 to read as follows: |
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Sec. 37.058. CERTIFICATE AND DETERMINATION ISSUED TO |
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CERTAIN NON-ERCOT UTILITIES FOR GENERATING FACILITY. (a) This |
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section applies only to an electric utility that operates solely |
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outside of ERCOT. |
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(b) An electric utility may file with the commission a |
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request that the commission: |
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(1) grant a certificate for an electric generating |
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facility; |
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(2) make a public interest determination for the |
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purchase of an existing electric generating facility under Section |
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14.101; or |
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(3) both grant a certificate and make a determination. |
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(c) Notwithstanding any other law, in a proceeding |
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involving the purchase of an existing electric generating facility, |
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the commission shall issue a final order on a certificate for the |
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facility or making a determination on the facility required by |
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Section 14.101, as applicable, not later than the 181st day after |
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the date a request for the certificate or determination is filed |
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with the commission under Subsection (b). For generating facilities |
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granted a certificate under this subsection, notwithstanding |
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Section 36.053, the utility's recoverable invested capital |
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included in rates shall be determined by the commission. |
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(d) Notwithstanding any other law, in a proceeding |
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involving a newly constructed generating facility, the commission |
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shall issue a final order on a certificate for the facility not |
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later than the 366th day after the date a request for the |
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certificate is filed with the commission under Subsection (b). |
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SECTION 3. The changes in law made by this Act are not |
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intended to affect the exercise of municipal jurisdiction under |
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Chapter 33, Utilities Code. |
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SECTION 4. 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 5. 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, 2015. |