86R7469 BRG-F
 
  By: Phelan H.B. No. 1397
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to the establishment of rates for certain non-ERCOT
  utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.112(g), Utilities Code, is amended to
  read as follows:
         (g)  This section expires September 1, 2031 [2023].
         SECTION 2.  Section 36.211(f), Utilities Code, is amended to
  read as follows:
         (f)  This section expires September 1, 2031 [2023].
         SECTION 3.  Section 36.212(g), Utilities Code, is amended to
  read as follows:
         (g)  This section expires September 1, 2031 [2023].
         SECTION 4.  Subchapter E, Chapter 36, Utilities Code, is
  amended by adding Section 36.213 to read as follows:
         Sec. 36.213.  RECOVERY OF GENERATION INVESTMENT BY NON-ERCOT
  UTILITIES.  (a)  This section applies only to an electric utility
  that operates solely outside of ERCOT.
         (b)  To encourage generation investment, an electric utility
  may file, and the commission may approve, an application for a rider
  to recover the electric utility's reasonable and necessary power
  generation investment and costs associated with that investment.
         (c)  To enable full and timely recovery, an application under
  Subsection (b) may be filed by the electric utility and approved by
  the commission before the electric utility places the power
  generation investment in service.
         (d)  Any rider approved under Subsection (b) shall take
  effect on the date the power generation investment begins providing
  service to the electric utility's customers.
         (e)  A rider approved under Subsection (b) shall account for
  changes in the number of an electric utility's customers and the
  effects, on a weather-normalized basis, that energy consumption and
  energy demand have on the amount of revenue recovered through the
  electric utility's base rates.
         (f)  The commission shall adopt rules as necessary to
  implement this section.
         SECTION 5.  Not later than September 1, 2020, the Public
  Utility Commission of Texas shall adopt rules required by Section
  36.213(f), Utilities Code, as added by this Act.
         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, 2019.