Bill Text: TX SB735 | 2017-2018 | 85th Legislature | Enrolled
Bill Title: Relating to periodic rate adjustment by and to certain transactions involving electric utilities.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2017-05-27 - Effective immediately [SB735 Detail]
Download: Texas-2017-SB735-Enrolled.html
S.B. No. 735 |
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relating to periodic rate adjustment by and to certain transactions | ||
involving electric utilities. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Subchapter D, Chapter 36, Utilities Code, is | ||
amended by adding Section 36.157 to read as follows: | ||
Sec. 36.157. RATE REVIEW SCHEDULE. (a) This section | ||
applies only to an electric utility, other than a river authority, | ||
that operates solely inside ERCOT. | ||
(b) Notwithstanding any other provision of this title, not | ||
later than June 1, 2018, the commission by rule shall establish a | ||
schedule that requires an electric utility to make periodic filings | ||
with the commission to modify or review base rates charged by the | ||
electric utility. The schedule may be established on the basis of: | ||
(1) the period since the commission entered the | ||
commission's final order in the electric utility's most recent base | ||
rate proceeding; | ||
(2) whether the electric utility has earned materially | ||
more than the utility's authorized rate of return on equity as | ||
demonstrated by earnings monitoring reports; or | ||
(3) other criteria that the commission determines is | ||
in the public interest. | ||
(c) The commission shall extend the date for the proceeding | ||
required by Subsection (b) by one year on a year-to-year basis if, | ||
180 days before the date the proceeding is required, the electric | ||
utility's most recent earnings monitoring report shows the electric | ||
utility is earning, on a weather-normalized basis, less than 50 | ||
basis points above: | ||
(1) for a transmission and distribution utility, the | ||
average of the most recent commission-approved rate of return on | ||
equity for each transmission and distribution utility with 175,000 | ||
or more metered customers; and | ||
(2) for a transmission-only utility, the average of | ||
the most recent commission-approved rate of return on equity for | ||
each transmission-only utility. | ||
(d) The commission may extend the date for the proceeding | ||
required by Subsection (b) for good cause shown or because of | ||
resource constraints of the commission. | ||
(e) This section does not limit the ability of a regulatory | ||
authority to initiate a base rate proceeding at any time under this | ||
title. | ||
SECTION 2. Section 36.210, Utilities Code, is amended by | ||
amending Subsection (d) and adding Subsection (d-1) to read as | ||
follows: | ||
(d) Except as provided by Subsection (d-1), an [ |
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utility may adjust the utility's rates under this section not more | ||
than once per year and not more than four times between | ||
comprehensive base rate proceedings. | ||
(d-1) For an electric utility subject to Section 36.157, | ||
beginning on the effective date of the schedule adopted by the | ||
commission under Section 36.157(b), the electric utility may adjust | ||
the utility's rates under this section more than four times between | ||
base rate proceedings. | ||
SECTION 3. Section 39.262(m), Utilities Code, is amended to | ||
read as follows: | ||
(m) The commission shall approve a transaction under | ||
Subsection (l) if the commission finds that the transaction is in | ||
the public interest. In making its determination, the commission | ||
shall consider whether the transaction will adversely affect the | ||
reliability of service, availability of service, or cost of service | ||
of the electric utility or transmission and distribution utility. | ||
The commission shall make the determination concerning a | ||
transaction under this subsection not later than the 180th day | ||
after the date the commission receives the relevant report. The | ||
commission may extend the deadline provided by this subsection for | ||
not more than 60 days if the commission determines the extension is | ||
needed to evaluate additional information, to consider actions | ||
taken by other jurisdictions concerning the transaction, to provide | ||
for administrative efficiency, or for other good cause. If the | ||
commission has not made a determination before the expiration of | ||
the deadline provided by or extended under this subsection [ |
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SECTION 4. Section 39.915(b), Utilities Code, is amended to | ||
read as follows: | ||
(b) The commission shall approve a transaction under | ||
Subsection (a) if the commission finds that the transaction is in | ||
the public interest. In making its determination, the commission | ||
shall consider whether the transaction will adversely affect the | ||
reliability of service, availability of service, or cost of service | ||
of the electric utility or transmission and distribution utility. | ||
The commission shall make the determination concerning a | ||
transaction under this subsection not later than the 180th day | ||
after the date the commission receives the relevant report. The | ||
commission may extend the deadline provided by this subsection for | ||
not more than 60 days if the commission determines the extension is | ||
needed to evaluate additional information, to consider actions | ||
taken by other jurisdictions concerning the transaction, to provide | ||
for administrative efficiency, or for other good cause. If the | ||
commission has not made a determination before the expiration of | ||
the deadline provided by or extended under this subsection [ |
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SECTION 5. Sections 36.210(h), (h-1), and (i), Utilities | ||
Code, are repealed. | ||
SECTION 6. 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, 2017. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I hereby certify that S.B. No. 735 passed the Senate on | ||
April 19, 2017, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
I hereby certify that S.B. No. 735 passed the House on | ||
May 17, 2017, by the following vote: Yeas 142, Nays 1, two | ||
present not voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
Approved: | ||
______________________________ | ||
Date | ||
______________________________ | ||
Governor |