Bill Text: TX SB735 | 2013-2014 | 83rd Legislature | Introduced

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Bill Title: Relating to using the system benefit fund for the support of certain programs for low-income electric customers.

Sponsorship: Partisan Bill (Democrat 1)

Status: (Introduced - Dead) 2013-03-18 - Referred to s/c on Fiscal Matters by Chair [SB735 Detail]

Download: Texas-2013-SB735-Introduced.html

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83R2307 JJT-D
By: Lucio S.B. No. 735

A BILL TO BE ENTITLED
AN ACT
relating to using the system benefit fund for the support of certain
programs for low-income electric customers.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.903, Utilities Code, is amended by
amending Subsections (e) and (f) and adding Subsection (e-1) to
read as follows:
(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) 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 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.
(e-1) After deducting amounts allocated to pay for
activities under Subsection (e)(2), the remaining appropriations
to the commission from the system benefit fund must be allocated so
that:
(1) 75 percent is used for the purposes of Subsections
(e)(1)(A) and (e)(4);
(2) at least 20 percent is used for the purposes of
Subsection (e)(3); and
(3) not more than 5 percent is used for the purposes of
Subsection (e)(1)(B).
(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,
including energy efficiency programs, insulation programs, home
energy audit programs, modifications to home appliances or heating
or cooling systems, and programs described by Section 2306.0975,
Government Code.
SECTION 2. Subchapter E, Chapter 2306, Government Code, is
amended by adding Section 2306.0975 to read as follows:
Sec. 2306.0975. CREDIT-ENHANCED LOANS TO BENEFIT
LOW-INCOME ELECTRIC CUSTOMERS. (a) The department shall establish
one or more credit-enhanced loan programs to assist low-income
electric customers in paying for energy efficiency projects or
renewable energy projects designed to benefit those electric
customers. The department shall fund the programs using money
received by the department under Section 39.903(f)(2), Utilities
Code, and other money appropriated for that purpose, including
money appropriated under Subsection (d).
(b) A credit-enhanced loan under a program may be directed
for individual product installations or whole-building upgrades
and may be given to a low-income electric customer, an owner of
housing for low-income persons, a local government, a private
developer, or a nonprofit or other entity that constructs or
conducts major renovations of housing for low-income populations.
(c) A program established under this section may take the
form of:
(1) a loan loss reserve set aside to offset potential
losses as a result of repayment defaults;
(2) a loan guarantee to cover a lender's potential
losses on loans;
(3) a debt service reserve set aside to offset
potential delayed or defaulted loan payments; or
(4) a reduced interest loan program.
(d) The legislature may appropriate money to the department
from the system benefit fund for the purposes of a program
established under this section.
SECTION 3. This Act takes effect September 1, 2013.