Bill Text: TX HB4567 | 2021-2022 | 87th Legislature | Introduced
Bill Title: Relating to money used in and the continuation of the system benefit fund
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2021-03-29 - Referred to State Affairs [HB4567 Detail]
Download: Texas-2021-HB4567-Introduced.html
By: Anchia | H.B. No. 4567 |
|
||
|
||
relating to money used in and the continuation of the system benefit | ||
fund | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Sec. 39.903. SYSTEM BENEFIT FUND. | ||
(a) The system benefit fund is an account in the general | ||
revenue fund. Money in the account may be appropriated only for the | ||
purposes provided by this section or other law. Interest earned on | ||
the system benefit fund shall be credited to the fund. Section | ||
403.095, Government Code, does not apply to the system benefit | ||
fund. | ||
(b) The system benefit fund is financed by a nonbypassable | ||
fee set by the commission in an amount not to exceed 65 cents per | ||
megawatt hour and by appropriated funds. The system benefit fund | ||
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 fund 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 shall annually review and approve system | ||
benefit fund accounts, projected revenue requirements, and | ||
proposed nonbypassable fees. | ||
(e) Money in the system benefit fund may be appropriated to | ||
provide funding solely for the following regulatory purposes, in | ||
the following order of priority: | ||
(1) programs to: | ||
(A) provide bill payment assistance to | ||
low-income electric customers who during the time of a declared | ||
disaster that occurred in year 2021 or after and had an indexed | ||
plan, or a variable rate plan, and have been impacted by high energy | ||
bills as a result of the declared natural disaster; and | ||
[ |
||
by providing the 10 percent reduced rate prescribed by Subsection | ||
(h); and | ||
[ |
||
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 integrated eligibility | ||
process 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 and, if | ||
sufficient money in the system benefit fund is available, up to 20 | ||
percent, lower than the amount the customer would otherwise be | ||
charged. To the extent the system benefit fund is insufficient to | ||
fund 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 fund 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 shall 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 fund 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 system benefit fund 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 system benefit fund 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 Texas Department of Human Services, on | ||
request of the commission, shall assist in the adoption and | ||
implementation of these rules. The commission and the Texas | ||
Department of Human Services shall enter into a memorandum of | ||
understanding establishing the respective duties of the commission | ||
and the department 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 Texas Department | ||
of Human Services or medical assistance from a state agency | ||
administering a part of the medical assistance program. | ||
(m) This section expires September 1, 2024 [ |