H.B. No. 2073
 
 
 
 
AN ACT
  relating to the recovery of fuel and purchased power costs by
  electric utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.203, Utilities Code, is amended to
  read as follows:
         Sec. 36.203.  FUEL AND PURCHASED POWER COST RECOVERY;
  ADJUSTMENT OF FUEL FACTOR. (a) Section 36.201 does not prohibit
  the commission from reviewing and providing for adjustments of an
  electric [a] utility's fuel factor.
         (b)  The commission by rule shall implement procedures that
  provide for the timely adjustment of an electric [a] utility's fuel
  factor[, with or without a hearing].  The rules [procedures] must
  require that[:
               [(1)]  the findings required by Section 36.058
  regarding fuel transactions with affiliated interests be [are] made
  in a fuel reconciliation proceeding or in a rate case filed under
  Subchapter C or D.  The rules must ensure that:
               (1)  the utility collects as contemporaneously as
  reasonably possible the electric fuel and purchased power costs
  that the utility incurs and that the commission determines are
  eligible;
               (2)  the total of the utility's eligible electric fuel
  and purchased power costs, including any under-collected or
  over-collected amounts to be recovered through an interim fuel
  adjustment, is allocated among customer classes based on actual
  historical calendar month usage;
               (3)  any material balance of amounts under-collected or
  over-collected for eligible electric fuel and purchased power costs
  is collected from or refunded to customers through an interim fuel
  adjustment:
                     (A)  not later than the 90th day after the date the
  balance is accrued; or
                     (B)  if the adjustment would result in a total
  bill increase of 10 percent or more compared to the total bill in
  the month before implementation, not later than a date ordered by
  the commission which must be after the 90th day after the date the
  balance is accrued; and
               (4)[; and
               [(2)]  an affected party will receive notice and have
  the opportunity to request a hearing before the commission.
         (c)  Notwithstanding Subsection (b)(3), on a finding that an
  electric utility has an under-collected balance that is the result
  of extraordinary electric fuel and purchased power costs that are
  unlikely to continue, the commission may approve an interim fuel
  adjustment that would defer recovery to take place over a period
  longer than 90 days [The commission may adjust a utility's fuel
  factor without a hearing if the commission determines that a
  hearing is not necessary. If the commission holds a hearing, the
  commission may consider at the hearing any evidence that is
  appropriate and in the public interest].
         (d)  The commission is not required to hold a hearing on the
  adjustment of an electric utility's fuel factor under this section.  
  If the commission holds a hearing, the commission may consider at
  the hearing any evidence that is appropriate and in the public
  interest [The commission shall render a timely decision approving,
  disapproving, or modifying the adjustment to the utility's fuel
  factor].
         (e)  A customer of the electric utility, a municipality with
  original jurisdiction over the utility, or the office may protest a
  fuel factor or interim fuel adjustment proposed under this section.
  The prudence of costs may not be considered in a fuel factor or
  interim fuel adjustment proceeding and may only be considered in a
  fuel reconciliation proceeding under Subsection (h) or another
  appropriate proceeding [The commission by rule shall provide for
  the reconciliation of a utility's fuel costs on a timely basis].
         (f)  The sole issue that may be considered on a protest of a
  fuel factor under Subsection (e) is whether the factor reasonably
  reflects costs the electric utility will incur so that the utility
  will not substantially under-collect or over-collect the utility's
  reasonably stated fuel and purchased power costs on an ongoing
  basis.  The commission may adjust the utility's fuel factor based on
  its determination on that issue.
         (g)  The commission shall hold a hearing on a protest of an
  interim fuel adjustment under Subsection (e) if the adjustment
  would result in a total bill increase of 10 percent or more as
  described by Subsection (b)(3) or if the adjustment results from
  extraordinary electric fuel and purchased power costs as described
  by Subsection (c).  In response to a protest of an interim fuel
  adjustment, if the commission finds that the electric utility is in
  a state of material under-collection or over-collection of the
  utility's reasonably stated eligible fuel and purchased power costs
  and is projected to remain in that state on an ongoing basis, the
  commission shall order the utility to establish or modify an
  interim fuel adjustment to address the under-collection or
  over-collection in a manner consistent with this section.
         (h)  An electric utility shall apply to reconcile the
  utility's electric fuel and purchased power costs at least once
  every two years. The application must be made not later than the
  180th day after the last day of the period to be reconciled. The
  commission may by rule establish the calendar year timing of the
  reconciliation period for each electric utility subject to this
  section to facilitate efficient work by the commission.  To the
  extent a reconciliation results in a change to the electric
  utility's under-collected or over-collected fuel balance, that
  change may be incorporated into an interim fuel adjustment as
  directed by the commission.
         (i)  A proceeding under this section is not a rate case under
  Subchapter C.
         SECTION 2.  The first time an electric utility applies to
  reconcile the utility's fuel costs and purchased power costs under
  Section 36.203(h), Utilities Code, as added by this Act, after the
  Public Utility Commission of Texas adopts the rules required to
  implement that subsection, the electric utility shall include in
  the application any period that has not been addressed in a previous
  reconciliation proceeding.
         SECTION 3.  This Act takes effect September 1, 2023.
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
 
         I certify that H.B. No. 2073 was passed by the House on May 2,
  2023, by the following vote:  Yeas 145, Nays 0, 1 present, not
  voting.
 
  ______________________________
  Chief Clerk of the House   
 
 
         I certify that H.B. No. 2073 was passed by the Senate on May
  15, 2023, by the following vote:  Yeas 31, Nays 0.
 
  ______________________________
  Secretary of the Senate    
  APPROVED:  _____________________
                     Date          
   
            _____________________
                   Governor