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AN ACT
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relating to the initiation of customer choice by municipally owned |
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utilities that provide electric service. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Sections 40.053(c), (d), and (e), Utilities |
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Code, are amended to read as follows: |
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(c) On its initiation of customer choice, a municipally |
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owned utility may [shall] designate itself or one or more other |
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entities [another entity] as the provider or providers of last |
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resort for customers within the municipally owned utility's |
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certificated service area as that area existed on the date of the |
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utility's initiation of customer choice. The municipally owned |
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utility shall fulfill the role of default provider of last resort in |
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the event no other entity is available to act in that capacity if |
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the municipally owned utility continues to sell electric energy to |
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retail customers after the initiation of customer choice. The |
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municipally owned utility may delegate the authority to designate |
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the provider or providers of last resort to the commission. |
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(d) If a customer is unable to obtain service from a retail |
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electric provider or a municipally owned utility or electric |
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cooperative offering customer choice, on request by the customer, |
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the applicable provider of last resort shall offer the customer the |
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standard retail service package for the appropriate customer class, |
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with no interruption of service, at a fixed, nondiscountable rate |
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that is at least sufficient to cover the reasonable costs of |
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providing that service, as approved by the governing body of the |
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municipally owned utility that has the authority to set rates. If a |
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provider of last resort is designated by the commission, the |
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commission may set the rate each provider of last resort may charge. |
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(e) The governing body of a municipally owned utility may |
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establish the procedures and criteria for designating a [the] |
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provider of last resort and may redesignate a [the] provider of last |
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resort according to a schedule it considers appropriate. If the |
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municipally owned utility delegates authority to the commission |
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under Subsection (c), the commission is not required to comply with |
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procedures or criteria adopted by the municipally owned utility. |
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SECTION 2. Section 40.057(c), Utilities Code, is amended to |
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read as follows: |
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(c) A municipally owned utility that opts for customer |
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choice and does not sell electric energy to retail customers is not |
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required to bill directly for distribution, transmission, and |
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generation services provided to retail electric customers located |
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in its certificated service area. A retail electric provider may |
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provide billing services for distribution, transmission, and |
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generation services provided to those customers. [A customer that |
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is being provided wires service by a municipally owned utility at |
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distribution or transmission voltage and that is served by a retail |
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electric provider for retail service has the option of being billed |
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directly by each service provider or to receive a single bill for |
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distribution, transmission, and generation services from the |
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municipally owned utility.] |
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SECTION 3. 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. 1170 passed the Senate on |
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April 20, 2023, by the following vote: Yeas 29, 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. 1170 passed the House on |
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May 3, 2023, by the following vote: Yeas 143, Nays 1, one present |
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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 |