Bill Text: TX HB2061 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the recovery of purchased power costs by electric utilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-08 - Referred to State Affairs [HB2061 Detail]
Download: Texas-2023-HB2061-Introduced.html
88R3414 JXC-F | ||
By: Price | H.B. No. 2061 |
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relating to the recovery of purchased power costs by electric | ||
utilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 36.206, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 36.206. MARK-UPS. (a) A cost recovery factor | ||
established for the recovery of purchased power costs must [ |
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include: | ||
(1) the cost the electric utility incurs in purchasing | ||
capacity and energy; and | ||
(2) a mark-up added to the cost or another mechanism | ||
the commission determines will: | ||
(A) reasonably compensate the utility for any | ||
administrative costs, financing costs, and financial risk | ||
associated with purchased power obligations so that the mark-up is | ||
sufficient to ensure that the utility has financial incentives to | ||
procure purchased power rather than rely solely on utility-owned | ||
generation; and | ||
(B) allow the utility to retain a reasonable | ||
portion of [ |
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purchased power available to customers. | ||
(b) The mark-ups and cost recovery factors: | ||
(1) must [ |
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electric utility; and | ||
(2) may not be less than an amount sufficient [ |
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economical purchased power as part of the utility's energy and | ||
capacity resource supply plan. | ||
(c) An electric utility's rate of return established in the | ||
utility's base rate may not be reduced in connection with the | ||
implementation of this section. | ||
SECTION 2. Section 36.207, Utilities Code, is repealed. | ||
SECTION 3. Section 36.206, Utilities Code, as amended by | ||
this Act, applies only to a proceeding for the establishment of | ||
rates that begins on or after the effective date of this Act. A | ||
proceeding that begins before that date is governed by the law in | ||
effect immediately before the effective date of this Act, and that | ||
law is continued in effect for that purpose. | ||
SECTION 4. This Act takes effect September 1, 2023. |