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AN ACT
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relating to periodic rate adjustments by electric utilities. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 36.210, Utilities Code, is amended by |
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amending Subsections (a), (d), and (g) and adding Subsections (h) |
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and (i) to read as follows: |
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(a) The commission [or a regulatory authority], on the |
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petition of an electric utility, may approve a tariff or rate |
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schedule in which a nonfuel rate may be periodically adjusted |
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upward or downward, based on changes in the parts of the utility's |
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invested capital, as described by Section 36.053, that are |
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categorized or functionalized as distribution plant, |
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distribution-related intangible plant, and distribution-related |
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communication equipment and networks in accordance with commission |
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rules adopted after consideration of the uniform system of accounts |
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prescribed by the Federal Energy Regulatory Commission. A |
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periodic rate adjustment must: |
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(1) be approved or denied in accordance with a [an |
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expedited] procedure that[: |
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[(A) provides for appropriate updates of |
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information; |
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[(B)] allows for participation by the office and |
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affected parties; [and |
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[(C) extends for not less than 60 days;] |
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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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(d) An [Except as provided by Subsection (d-1), an] electric |
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utility may adjust the utility's rates under this section not more |
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than twice [once] per year [and not more than four times between |
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comprehensive base rate proceedings]. |
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(g) The commission shall adopt rules necessary to implement |
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this section. The rules must provide for: |
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(1) a procedure by which a tariff or rate schedule is |
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to be reviewed and approved; |
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(2) filing requirements and discovery consistent with |
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[the expedited procedure described by] Subsection (a) [(a)(1)]; |
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(3) an earnings monitoring report that allows the |
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commission [or regulatory authority] to reasonably determine |
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whether a utility is earning in excess of the utility's allowed |
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return on investment as normalized for weather; |
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(4) denial of the electric utility's filing if the |
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electric utility is earning more than the utility's authorized rate |
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of return on investment, on a weather-normalized basis, at the time |
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the periodic rate adjustment request is filed; and |
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(5) a mechanism by which the commission may refund |
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customers any amounts determined to be improperly recovered through |
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a periodic rate adjustment, including any interest on the amounts. |
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(h) An electric utility may file a request for a periodic |
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rate adjustment under this section on any day on which the |
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commission is open for business, except that if the utility has a |
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base rate proceeding pending, the utility may not file the request |
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before the 185th day after the date the base rate proceeding was |
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initiated. The electric utility may revise a request to reflect the |
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final order issued in the base rate proceeding. The fact that an |
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electric utility has a base rate proceeding pending during a |
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proceeding conducted under this section does not establish grounds |
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for dismissal of either proceeding. |
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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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60th day after the date the request is filed. The commission may |
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extend the deadline for not more than 15 days for good cause. |
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SECTION 2. Section 36.210(d-1), Utilities Code, is |
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repealed. |
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SECTION 3. 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 |
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other regulatory authority described by Section 11.003, Utilities |
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Code, 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 4. 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, 2023. |
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______________________________ |
______________________________ |
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President of the Senate |
Speaker of the House |
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I hereby certify that S.B. No. 1015 passed the Senate on |
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April 5, 2023, by the following vote: Yeas 31, Nays 0; and that |
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the Senate concurred in House amendment on May 25, 2023, by the |
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following vote: Yeas 31, Nays 0. |
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______________________________ |
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Secretary of the Senate |
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I hereby certify that S.B. No. 1015 passed the House, with |
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amendment, on May 23, 2023, by the following vote: Yeas 135, |
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Nays 2, two present not voting. |
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______________________________ |
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Chief Clerk of the House |
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Approved: |
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______________________________ |
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Date |
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______________________________ |
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Governor |