Bill Text: TX SB1098 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to rates for electricity charged by certain municipally owned utilities and to the use of revenue from the rates.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-07 - Referred to Business & Commerce [SB1098 Detail]
Download: Texas-2019-SB1098-Introduced.html
86R7820 JXC-F | ||
By: Buckingham | S.B. No. 1098 |
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relating to rates for electricity charged by certain municipally | ||
owned utilities and to the use of revenue from the rates. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter B, Chapter 40, Utilities Code, is | ||
amended by adding Section 40.0521 to read as follows: | ||
Sec. 40.0521. RATES OF AND USE OF REVENUE BY CERTAIN | ||
UTILITIES NOT OFFERING CUSTOMER CHOICE. (a) This section applies | ||
only to a municipally owned utility that provides service in the | ||
Capitol complex, as defined by Section 443.0071, Government Code. | ||
(b) This section does not require a municipally owned | ||
utility to implement or opt for customer choice. | ||
(c) In the case of a conflict between this section and | ||
another provision of law, this section prevails. | ||
(d) A municipally owned utility may not directly or | ||
indirectly subsidize wholesale competitive activities through | ||
rates charged for the provision of retail electric service that | ||
include fixed or variable costs reasonably attributable to the | ||
operation and maintenance of municipally owned utility assets that | ||
generate energy for sale at wholesale. | ||
(e) The commission by rule shall require a municipally owned | ||
utility to submit to the commission information to allow the | ||
commission to determine whether the municipally owned utility is | ||
complying with the requirements of Subsection (d). The commission | ||
shall notify the municipal governing body or body vested with the | ||
power to manage and operate a municipally owned utility if the | ||
commission determines that the municipally owned utility is not | ||
complying with the requirements of Subsection (d). | ||
(f) A municipal governing body or a body vested with the | ||
power to manage and operate a municipally owned utility that | ||
receives notice from the commission under Subsection (e): | ||
(1) shall require the municipally owned utility to | ||
comply with Subsection (d); and | ||
(2) may, in a manner consistent with Section | ||
40.055(a)(4), reasonably determine the amount of the municipally | ||
owned utility's stranded investment and calculate and establish for | ||
the municipally owned utility a non-bypassable charge reflecting | ||
stranded costs properly attributable to the municipally owned | ||
utility's retail electric service customers. | ||
(g) The relevant date for identifying stranded investment | ||
under Subsection (f) is November 30, 2010, instead of the date | ||
specified in Section 40.055(a)(4). The amount and duration of the | ||
charge under Subsection (f) must: | ||
(1) be calculated in a similar manner to that | ||
prescribed by Subchapter F, Chapter 39; | ||
(2) include the calculation of nuclear | ||
decommissioning costs as allowed by Sections 39.205 and 39.206; and | ||
(3) consider the municipally owned utility's capital | ||
and debt structure. | ||
(h) A person affected by a determination made under this | ||
section by a municipal governing body or a body vested with the | ||
power to manage and operate a municipally owned utility may appeal | ||
the determination to the commission by filing with the commission a | ||
petition for review not later than the 30th day after the date of | ||
the determination. An appeal under this section is de novo. The | ||
commission shall enter a final order: | ||
(1) approving the determination of the municipal | ||
governing body or the body vested with the power to manage and | ||
operate the municipally owned utility; or | ||
(2) substituting the commission's own determination. | ||
(i) A municipally owned utility may use the net proceeds of | ||
its wholesale competitive activities for any purpose deemed | ||
appropriate by the municipal governing body or a body vested with | ||
the power to manage and operate the municipally owned utility. | ||
Those purposes may include utility debt repayment, reduction of | ||
purchased power costs, or transfers to the general fund. The | ||
municipally owned utility shall: | ||
(1) document and book the underlying transactions in | ||
auditable form; and | ||
(2) on at least an annual basis as part of the | ||
budgeting process, disclose to the public the net amount of the | ||
proceeds and the intended uses of the proceeds. | ||
SECTION 2. A municipally owned utility described by Section | ||
40.0521, Utilities Code, as added by this Act, that directly or | ||
indirectly subsidizes competitive activities through rates charged | ||
for the provision of retail electric service on the effective date | ||
of this Act shall comply with Section 40.0521, Utilities Code, as | ||
added by this Act, not later than March 1, 2020. | ||
SECTION 3. This Act takes effect September 1, 2019. |