Bill Text: TX HB1535 | 2015-2016 | 84th Legislature | Enrolled
Bill Title: Relating to rates of and certificates of convenience and necessity for certain non-ERCOT electric utilities; authorizing a surcharge.
Spectrum: Partisan Bill (Republican 22-1)
Status: (Passed) 2015-06-17 - Effective immediately [HB1535 Detail]
Download: Texas-2015-HB1535-Enrolled.html
H.B. No. 1535 |
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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. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 1535 was passed by the House on May 4, | ||
2015, by the following vote: Yeas 114, Nays 25, 3 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 1535 was passed by the Senate on May | ||
26, 2015, by the following vote: Yeas 30, Nays 1. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |