Bill Text: TX HB3076 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to establishing the system benefit account and programs for providing assistance to certain low-income, ill, and disabled electric customers.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-19 - Referred to State Affairs [HB3076 Detail]
Download: Texas-2021-HB3076-Introduced.html
87R12015 BRG-D | ||
By: J. Johnson of Harris | H.B. No. 3076 |
|
||
|
||
relating to establishing the system benefit account and programs | ||
for providing assistance to certain low-income, ill, and disabled | ||
electric customers. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 403.0956, Government Code, is amended to | ||
read as follows: | ||
Sec. 403.0956. REALLOCATION OF INTEREST ACCRUED ON CERTAIN | ||
DEDICATED REVENUE. Notwithstanding any other law, all interest or | ||
other earnings that accrue on all revenue held in an account in the | ||
general revenue fund any part of which Section 403.095 makes | ||
available for certification under Section 403.121 are available for | ||
any general governmental purpose, and the comptroller shall deposit | ||
the interest and earnings to the credit of the general revenue | ||
fund. This section does not apply to: | ||
(1) interest or earnings on revenue deposited in | ||
accordance with Section 51.008, Education Code; | ||
(2) an account that accrues interest or other earnings | ||
on deposits of state or federal money the diversion of which is | ||
specifically excluded by federal law; | ||
(3) the lifetime license endowment account; | ||
(4) the game, fish, and water safety account; | ||
(5) the coastal protection account; | ||
(6) the Alamo complex account; [ |
||
(7) the artificial reef account; or | ||
(8) the system benefit account. | ||
SECTION 2. Section 39.002, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 39.002. APPLICABILITY. This chapter, other than | ||
Sections 39.1516, 39.155, 39.157(e), 39.203, 39.903, 39.904, | ||
39.9051, 39.9052, and 39.914(e), does not apply to a municipally | ||
owned utility or an electric cooperative. Sections 39.157(e), | ||
39.203, and 39.904, however, apply only to a municipally owned | ||
utility or an electric cooperative that is offering customer | ||
choice. If there is a conflict between the specific provisions of | ||
this chapter and any other provisions of this title, except for | ||
Chapters 40 and 41, the provisions of this chapter control. | ||
SECTION 3. Section 39.352(g), Utilities Code, is amended to | ||
read as follows: | ||
(g) If a retail electric provider serves an aggregate load | ||
in excess of 300 megawatts within this state, not less than five | ||
percent of the load in megawatt hours must consist of residential | ||
customers. This requirement applies to an affiliated retail | ||
electric provider only with respect to load served outside of the | ||
electric utility's service area, and, in relation to that load, the | ||
affiliated retail electric provider shall meet the requirements of | ||
this subsection by serving residential customers outside of the | ||
electric utility's service area. For the purpose of this | ||
subsection, the load served by retail electric providers that are | ||
under common ownership shall be combined. A retail electric | ||
provider may meet the requirements of this subsection by | ||
demonstrating on an annual basis that it serves residential load | ||
amounting to five percent of its total load, [ |
||
that another retail electric provider serves sufficient qualifying | ||
residential load on its behalf, or by paying an amount into the | ||
system benefit account equal to $1 multiplied by a number equal to | ||
the difference between the number of megawatt hours it sold to | ||
residential customers and the number of megawatt hours it was | ||
required to sell to such customers, or in the case of an affiliated | ||
retail electric provider, $1 multiplied by a number equal to the | ||
difference between the number of megawatt hours sold to residential | ||
customers outside of the electric utility's service area and the | ||
number of megawatt hours it was required to sell to such customers | ||
outside of the electric utility's service area. Qualifying | ||
residential load may not include customers served by an affiliated | ||
retail electric provider in its own service area. Each retail | ||
electric provider shall file reports with the commission that are | ||
necessary to implement this subsection. This subsection applies for | ||
36 months after retail competition begins. The commission shall | ||
adopt rules to implement this subsection. | ||
SECTION 4. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.903 to read as follows: | ||
Sec. 39.903. SYSTEM BENEFIT ACCOUNT. (a) The system | ||
benefit account is an account in the general revenue fund. Money in | ||
the account may be appropriated only for the purposes provided by | ||
this section. Interest earned on the system benefit account shall | ||
be credited to the account. Section 404.071, Government Code, does | ||
not apply to the account. | ||
(b) The system benefit account is financed by a | ||
nonbypassable fee set by the commission in an amount not to exceed | ||
65 cents per megawatt hour. The fee is allocated to customers based | ||
on the amount of kilowatt hours used. | ||
(c) The nonbypassable fee may not be imposed on the retail | ||
electric customers of a municipally owned utility or electric | ||
cooperative before the sixth month preceding the date on which the | ||
utility or cooperative implements customer choice. Money | ||
distributed from the system benefit account to a municipally owned | ||
utility or an electric cooperative shall be proportional to the | ||
nonbypassable fee paid by the municipally owned utility or the | ||
electric cooperative, subject to the reimbursement provided by | ||
Subsection (i). On request by a municipally owned utility or | ||
electric cooperative, the commission shall reduce the | ||
nonbypassable fee imposed on retail electric customers served by | ||
the municipally owned utility or electric cooperative by an amount | ||
equal to the amount provided by the municipally owned utility or | ||
electric cooperative or its ratepayers for local low-income | ||
programs and local programs that educate customers about the retail | ||
electric market in a neutral and nonpromotional manner. | ||
(d) The commission annually shall review and approve the | ||
system benefit account, projected revenue requirements, and | ||
proposed nonbypassable fees. | ||
(e) Money in the system benefit account may be appropriated | ||
to provide funding only for the following regulatory purposes, in | ||
the following order of priority: | ||
(1) programs to: | ||
(A) assist low-income electric customers by | ||
providing the 10 percent reduced rate prescribed by Subsection (h); | ||
and | ||
(B) provide one-time bill payment assistance to | ||
electric customers who are or who have in their households one or | ||
more seriously ill or disabled low-income persons and who have been | ||
threatened with disconnection for nonpayment; | ||
(2) customer education programs, administrative | ||
expenses incurred by the commission in implementing and | ||
administering this chapter, and expenses incurred by the office | ||
under this chapter; | ||
(3) programs to assist low-income electric customers | ||
by providing the targeted energy efficiency programs described by | ||
Subsection (f)(2); | ||
(4) programs to assist low-income electric customers | ||
by providing the 20 percent reduced rate prescribed by Subsection | ||
(h); and | ||
(5) reimbursement to the commission and the Health and | ||
Human Services Commission for expenses incurred in the | ||
implementation and administration of an automatic process for | ||
identifying low-income customers to retail electric providers | ||
created under Section 17.007 for customer service discounts | ||
relating to retail electric service, including outreach expenses | ||
the commission determines are reasonable and necessary. | ||
(f) Notwithstanding Section 39.106(b), the commission shall | ||
adopt rules regarding programs to assist low-income electric | ||
customers on the introduction of customer choice. The programs may | ||
not be targeted to areas served by municipally owned utilities or | ||
electric cooperatives that have not adopted customer choice. The | ||
programs shall include: | ||
(1) reduced electric rates as provided by Subsections | ||
(h)-(l); and | ||
(2) targeted energy efficiency programs to be | ||
administered by the Texas Department of Housing and Community | ||
Affairs in coordination with existing weatherization programs. | ||
(g) Until customer choice is introduced in a power region, | ||
an electric utility may not reduce, in any manner, programs already | ||
offered to assist low-income electric customers. | ||
(h) The commission shall adopt rules for a retail electric | ||
provider to determine a reduced rate for eligible customers to be | ||
discounted off the standard retail service package as approved by | ||
the commission under Section 39.106, or the price to beat | ||
established by Section 39.202, whichever is lower. Municipally | ||
owned utilities and electric cooperatives shall establish a reduced | ||
rate for eligible customers to be discounted off the standard | ||
retail service package established under Section 40.053 or 41.053, | ||
as appropriate. The reduced rate for a retail electric provider | ||
shall result in a total charge that is at least 10 percent lower | ||
than the amount the customer would otherwise be charged and, if | ||
sufficient money in the system benefit account is available, up to | ||
20 percent lower than that amount. To the extent the system benefit | ||
account is insufficient to provide for the initial 10 percent rate | ||
reduction, the commission may increase the fee to an amount not more | ||
than 65 cents per megawatt hour, as provided by Subsection (b). If | ||
the fee is set at 65 cents per megawatt hour or if the commission | ||
determines that appropriations are insufficient to provide for the | ||
10 percent rate reduction, the commission may reduce the rate | ||
reduction to less than 10 percent. For a municipally owned utility | ||
or electric cooperative, the reduced rate must be equal to an amount | ||
that can be fully funded by that portion of the nonbypassable fee | ||
proceeds paid by the municipally owned utility or electric | ||
cooperative that is allocated to the utility or cooperative by the | ||
commission under Subsection (e) for programs for low-income | ||
customers of the utility or cooperative. The reduced rate for | ||
municipally owned utilities and electric cooperatives under this | ||
section is in addition to any rate reduction that may result from | ||
local programs for low-income customers of the municipally owned | ||
utilities or electric cooperatives. | ||
(i) A retail electric provider, municipally owned utility, | ||
or electric cooperative seeking reimbursement from the system | ||
benefit account may not charge an eligible low-income customer a | ||
rate higher than the appropriate rate determined under Subsection | ||
(h). A retail electric provider not subject to the price to beat, or | ||
a municipally owned utility or electric cooperative subject to the | ||
nonbypassable fee under Subsection (c), shall be reimbursed from | ||
the account for the difference between the reduced rate and the rate | ||
established under Section 39.106 or, as appropriate, the rate | ||
established under Section 40.053 or 41.053. A retail electric | ||
provider who is subject to the price to beat shall be reimbursed | ||
from the account for the difference between the reduced rate and the | ||
price to beat. The commission shall adopt rules providing for the | ||
reimbursement. | ||
(j) The commission shall adopt rules providing for methods | ||
of enrolling customers eligible to receive reduced rates under | ||
Subsection (h). The rules must provide for automatic enrollment as | ||
one enrollment option. The Health and Human Services Commission, on | ||
request of the Public Utility Commission of Texas, shall assist in | ||
the adoption and implementation of these rules. The Public Utility | ||
Commission of Texas and the Health and Human Services Commission | ||
shall enter into a memorandum of understanding establishing the | ||
respective duties of the Public Utility Commission of Texas and the | ||
Health and Human Services Commission in relation to the automatic | ||
enrollment. | ||
(j-1) The commission shall adopt rules governing the bill | ||
payment assistance program provided under Subsection (e)(1)(B). | ||
The rules must provide that a customer is eligible to receive the | ||
assistance only if the assistance is necessary to prevent the | ||
disconnection of service for nonpayment of bills and the electric | ||
customer is or has in the customer's household one or more seriously | ||
ill or disabled low-income persons whose health or safety may be | ||
injured by the disconnection. The commission may prescribe the | ||
documentation necessary to demonstrate eligibility for the | ||
assistance and may establish additional eligibility criteria. The | ||
Health and Human Services Commission, on request of the commission, | ||
shall assist in the adoption and implementation of these rules. | ||
(k) A retail electric provider is prohibited from charging | ||
the customer a fee for participation in the reduced rate program. | ||
(l) For the purposes of this section, a "low-income electric | ||
customer" is an electric customer: | ||
(1) whose household income is not more than 125 | ||
percent of the federal poverty guidelines; or | ||
(2) who receives food stamps from the Health and Human | ||
Services Commission or medical assistance from a state agency | ||
administering a part of the medical assistance program. | ||
SECTION 5. Section 39.905(f), Utilities Code, is amended to | ||
read as follows: | ||
(f) Unless funding is provided under Section 39.903, each | ||
[ |
||
include in its energy efficiency plan a targeted low-income energy | ||
efficiency program as described by Section 39.903(f)(2), and the | ||
savings achieved by the program shall count toward the transmission | ||
and distribution utility's energy efficiency goal. The commission | ||
shall determine the appropriate level of funding to be allocated to | ||
both targeted and standard offer low-income energy efficiency | ||
programs in each unbundled transmission and distribution utility | ||
service area. The level of funding for low-income energy efficiency | ||
programs shall be provided from money approved by the commission | ||
for the transmission and distribution utility's energy efficiency | ||
programs. The commission shall ensure that annual expenditures for | ||
the targeted low-income energy efficiency programs of each | ||
unbundled transmission and distribution utility are not less than | ||
10 percent of the transmission and distribution utility's energy | ||
efficiency budget for the year. A targeted low-income energy | ||
efficiency program must comply with the same audit requirements | ||
that apply to federal weatherization subrecipients. In an energy | ||
efficiency cost recovery factor proceeding related to expenditures | ||
under this subsection, the commission shall make findings of fact | ||
regarding whether the utility meets requirements imposed under this | ||
subsection. The state agency that administers the federal | ||
weatherization assistance program shall participate in energy | ||
efficiency cost recovery factor proceedings related to | ||
expenditures under this subsection to ensure that targeted | ||
low-income weatherization programs are consistent with federal | ||
weatherization programs and adequately funded. | ||
SECTION 6. Section 40.001(a), Utilities Code, is amended to | ||
read as follows: | ||
(a) Notwithstanding any other provision of law, except | ||
Sections 39.155, 39.157(e), 39.203, 39.903, and 39.904, this | ||
chapter governs the transition to and the establishment of a fully | ||
competitive electric power industry for municipally owned | ||
utilities. With respect to the regulation of municipally owned | ||
utilities, this chapter controls over any other provision of this | ||
title, except for sections in which the term "municipally owned | ||
utility" is specifically used. | ||
SECTION 7. Section 40.004, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 40.004. JURISDICTION OF COMMISSION. Except as | ||
specifically otherwise provided in this chapter, the commission has | ||
jurisdiction over municipally owned utilities only for the | ||
following purposes: | ||
(1) to regulate wholesale transmission rates and | ||
service, including terms of access, to the extent provided by | ||
Subchapter A, Chapter 35; | ||
(2) to regulate certification of retail service areas | ||
to the extent provided by Chapter 37; | ||
(3) to regulate rates on appeal under Subchapters D | ||
and E, Chapter 33, subject to Section 40.051(c); | ||
(4) to establish a code of conduct as provided by | ||
Section 39.157(e) applicable to anticompetitive activities and to | ||
affiliate activities limited to structurally unbundled affiliates | ||
of municipally owned utilities, subject to Section 40.054; | ||
(5) to establish terms and conditions for open access | ||
to transmission and distribution facilities for municipally owned | ||
utilities providing customer choice, as provided by Section 39.203; | ||
(6) to require collection of the nonbypassable fee | ||
established under Section 39.903(b) and to administer the renewable | ||
energy credits program under Section 39.904(b) and the natural gas | ||
energy credits program under Section 39.9044(b); | ||
(7) to require reports of municipally owned utility | ||
operations only to the extent necessary to: | ||
(A) enable the commission to determine the | ||
aggregate load and energy requirements of the state and the | ||
resources available to serve that load; or | ||
(B) enable the commission to determine | ||
information relating to market power as provided by Section 39.155; | ||
and | ||
(8) to evaluate and monitor the cybersecurity | ||
preparedness of a municipally owned utility described by Section | ||
39.1516(a)(3) or (4). | ||
SECTION 8. Section 41.001, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 41.001. APPLICABLE LAW. Notwithstanding any other | ||
provision of law, except Sections 39.155, 39.157(e), 39.203, | ||
39.903, and 39.904, this chapter governs the transition to and the | ||
establishment of a fully competitive electric power industry for | ||
electric cooperatives. Regarding the regulation of electric | ||
cooperatives, this chapter shall control over any other provision | ||
of this title, except for sections in which the term "electric | ||
cooperative" is specifically used. | ||
SECTION 9. This Act takes effect September 1, 2021. |