Bill Text: TX SB1983 | 2023-2024 | 88th Legislature | Introduced

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Bill Title: Relating to charges imposed for costs related to Winter Storm Uri

Spectrum: Partisan Bill (Republican 4-0)

Status: (Introduced - Dead) 2023-03-30 - Co-author authorized [SB1983 Detail]

Download: Texas-2023-SB1983-Introduced.html

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By: Nichols, Schwertner S.B. No. 1983

A BILL TO BE ENTITLED
AN ACT
relating to charges imposed for costs related to Winter Storm Uri
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 104.361, Utilities Code, is amended by
adding Subsection (c) to read as follows:
(c) The legislature finds and declares that Winter Storm Uri
constituted a public calamity to this state due to the loss of life,
injury, property damage, and widespread disruptions of gas supply,
electricity, and utility services caused by prolonged freezing
temperatures, heavy snow, and freezing rain statewide.
SECTION 2. Section 104.373, Utilities Code, is amended by
adding Subsection (f) to read as follows:
(f) Notwithstanding any other law, a state agency may
provide money appropriated for the purpose to the issuing financing
entity to pay the aggregate customer rate relief charges authorized
by this subchapter on behalf of customers described by Subsection
(a).
SECTION 3. Chapter 403, Government Code, is amended by
adding Subchapter S to read as follows:
SUBCHAPTER S. STORM COST OFFSET FUND
Sec. 403.601. DEFINITIONS. In this subchapter:
(1) "Electric cooperative" means a corporation
organized and operating under Chapter 161, Utilities Code, or a
predecessor statute to Chapter 161, Utilities Code, and designated
by the legislature to receive a distribution from the storm cost
offset fund, or its designated agent.
(2) "Extraordinary costs and expenses" has the meaning
assigned by Section 41.152(4), Utilities Code.
(3) "Winter Storm Uri" means the North American winter
storm that occurred in February 2021.
Sec. 403.602. PURPOSE. (a) The legislature finds and
declares that Winter Storm Uri constituted a public calamity to
this state due to the loss of life, injury, property damage, and
widespread disruptions of gas supply, electricity, and utility
services caused by prolonged freezing temperatures, heavy snow, and
freezing rain statewide.
(b) The purpose of this subchapter is to reduce the rates or
charges that retail electric service customers would otherwise
experience because of extraordinary costs and expenses that
electric cooperatives incurred related to Winter Storm Uri and that
electric cooperatives seek to recover through temporary or
permanent rates or charges.
Sec. 403.603. STORM COST OFFSET FUND. (a) The storm cost
offset fund is created as a fund in the state treasury outside the
general revenue fund. The fund is composed of:
(1) money transferred to the fund at the direction of
the legislature;
(2) gifts and grants contributed to the fund; and
(3) other money required by law to be deposited in the
fund.
(b) Money deposited to the credit of the storm cost offset
fund must be used for the benefit of retail electric service
customers of electric cooperatives designated by the legislature to
receive a distribution from the fund. Money received by an electric
cooperative, or its designated agent, from the fund may be used only
to offset the rates or charges the electric cooperative imposes on
its retail electric service customers to recover extraordinary
costs and expenses or, for a generation and transmission
cooperative, those rates and charges imposed to recover
extraordinary costs and expenses from its member electric
cooperatives that serve retail electric service customers.
(c) The electric cooperative or its designated agent shall
implement an offset of rates or charges on a pro-rata basis to all
existing or future retail electric service customers obligated to
pay, on or after the date of the first retail electric service
invoice following the distribution, a rate or charge related to
recovery of the electric cooperative's extraordinary costs and
expenses. The offset shall be reflected as a credit on a retail
electric service customer's bill.
(d) A generation and transmission cooperative shall
implement an offset of rates or charges on a pro-rata basis to all
of its member electric cooperatives that receive a rate or charge to
recover the generation and transmission cooperative's
extraordinary costs and expenses, effective on the first billing
date following the distribution from the fund. The offset shall be
reflected as a credit on the member electric cooperative's bill.
(e) An electric cooperative that receives an offset
pursuant to Subsection (d) shall implement an offset of rates or
charges on a pro-rata basis to all existing or future retail
electric service customers obligated to pay a rate or charge to
recover extraordinary costs and expenses, on or after the date of
the first retail electric service invoice following the receipt of
an offset from a generation and transmission cooperative. The
electric cooperative's offset shall be reflected as a credit on a
retail electric service customer's bill.
(f) The comptroller shall promptly distribute money in the
fund as directed by the legislature for the benefit of retail
electric service customers of designated electric cooperatives or
retail electric service customers of the member electric
cooperatives of designated electric cooperatives. Distributions
received by an electric cooperative from the fund shall be held in
trust for the benefit of its retail electric service customers or
its member electric cooperatives that are entitled to offsets under
this subchapter.
(g) Interest earned on money deposited to the credit of the
storm cost offset fund is exempt from Government Code Section
404.071. Interest earned on money in the fund shall be retained in
the storm cost offset fund.
(h) An electric cooperative designated by the legislature
to receive a distribution from the fund shall cooperate with the
comptroller to carry out the purpose of the fund.
(i) An electric cooperative or its designated agent that
receives a distribution from the storm cost offset fund shall, by
March 1 each calendar year, submit a report to the Legislative
Budget Board stating the number of customers that have received an
offset to rates or charges, the total dollar amount of offsets
provided by the electric cooperative or its designated agent, the
amount of money remaining from the distribution, and how any
remaining money is being maintained and invested. An electric
cooperative or its designated agent shall submit the report for
each calendar year that it maintains money distributed from the
storm cost offset fund.
Section 403.604. EXPIRATION. (a) This subchapter expires on
September 1, 2028 except as provide by (b).
(b) If an electric cooperative that receives a distribution
from the storm cost offset fund is holding funds in trust beyond
September 1, 2028, the trust fund shall be operated according to
Section 403.603(b), (c), (d), (e), (f), (g) and (h) and those
provisions shall continue in effect for such purposes.
SECTION 4. 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.