Bill Text: TX SB1170 | 2023-2024 | 88th Legislature | Engrossed

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the initiation of customer choice by municipally owned utilities that provide electric service.

Spectrum: Partisan Bill (Republican 2-0)

Status: (Passed) 2023-05-19 - Effective immediately [SB1170 Detail]

Download: Texas-2023-SB1170-Engrossed.html
 
 
  By: Perry S.B. No. 1170
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the initiation of customer choice by municipally owned
  utilities that provide electric service.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Sections 40.053(c), (d), and (e), Utilities
  Code, are amended to read as follows:
         (c)  On its initiation of customer choice, a municipally
  owned utility may [shall] designate itself or one or more other
  entities [another entity] as the provider or providers of last
  resort for customers within the municipally owned utility's
  certificated service area as that area existed on the date of the
  utility's initiation of customer choice.  The municipally owned
  utility shall fulfill the role of default provider of last resort in
  the event no other entity is available to act in that capacity if
  the municipally owned utility continues to sell electric energy to
  retail customers after the initiation of customer choice.  The
  municipally owned utility may delegate the authority to designate
  the provider or providers of last resort to the commission.
         (d)  If a customer is unable to obtain service from a retail
  electric provider or a municipally owned utility or electric
  cooperative offering customer choice, on request by the customer,
  the applicable provider of last resort shall offer the customer the
  standard retail service package for the appropriate customer class,
  with no interruption of service, at a fixed, nondiscountable rate
  that is at least sufficient to cover the reasonable costs of
  providing that service, as approved by the governing body of the
  municipally owned utility that has the authority to set rates.  If a
  provider of last resort is designated by the commission, the
  commission may set the rate each provider of last resort may charge.
         (e)  The governing body of a municipally owned utility may
  establish the procedures and criteria for designating a [the]
  provider of last resort and may redesignate a [the] provider of last
  resort according to a schedule it considers appropriate.  If the
  municipally owned utility delegates authority to the commission
  under Subsection (c), the commission is not required to comply with
  procedures or criteria adopted by the municipally owned utility.
         SECTION 2.  Section 40.057(c), Utilities Code, is amended to
  read as follows:
         (c)  A municipally owned utility that opts for customer
  choice and does not sell electric energy to retail customers is not
  required to bill directly for distribution, transmission, and
  generation services provided to retail electric customers located
  in its certificated service area.  A retail electric provider may
  provide billing services for distribution, transmission, and
  generation services provided to those customers.  [A customer that
  is being provided wires service by a municipally owned utility at
  distribution or transmission voltage and that is served by a retail
  electric provider for retail service has the option of being billed
  directly by each service provider or to receive a single bill for
  distribution, transmission, and generation services from the
  municipally owned utility.]
         SECTION 3.  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, 2023.
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