Bill Text: TX HB1397 | 2019-2020 | 86th Legislature | Comm Sub
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to the establishment of rates for certain non-ERCOT utilities.
Spectrum: Moderate Partisan Bill (Republican 30-8)
Status: (Passed) 2019-06-14 - Effective immediately [HB1397 Detail]
Download: Texas-2019-HB1397-Comm_Sub.html
Bill Title: Relating to the establishment of rates for certain non-ERCOT utilities.
Spectrum: Moderate Partisan Bill (Republican 30-8)
Status: (Passed) 2019-06-14 - Effective immediately [HB1397 Detail]
Download: Texas-2019-HB1397-Comm_Sub.html
By: Phelan, et al. | H.B. No. 1397 | |
(Senate Sponsor - Nichols, Schwertner) | ||
(In the Senate - Received from the House April 8, 2019; | ||
April 9, 2019, read first time and referred to Committee on | ||
Business & Commerce; April 30, 2019, reported adversely, with | ||
favorable Committee Substitute by the following vote: Yeas 9, | ||
Nays 0; April 30, 2019, sent to printer.) | ||
COMMITTEE SUBSTITUTE FOR H.B. No. 1397 | By: Nichols |
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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 [ |
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SECTION 2. Section 36.211(f), Utilities Code, is amended to | ||
read as follows: | ||
(f) This section expires September 1, 2031 [ |
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SECTION 3. Section 36.212(g), Utilities Code, is amended to | ||
read as follows: | ||
(g) This section expires September 1, 2031 [ |
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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) An electric utility may file, and the commission may | ||
approve, an application for a rider to recover the electric | ||
utility's investment in a power generation facility. | ||
(c) 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 facility in service. | ||
(d) Any rider approved under Subsection (b) shall take | ||
effect on the date the power generation facility begins providing | ||
service to the electric utility's customers. | ||
(e) Amounts recovered through a rider approved under | ||
Subsection (b) are subject to reconciliation in the first | ||
comprehensive base rate proceeding for the electric utility that | ||
occurs after approval of the rider. During the reconciliation, the | ||
commission shall determine if the amounts recovered through the | ||
rider are reasonable and necessary. | ||
(f) If a rider approved under Subsection (b) includes | ||
recovery for a power generation facility that provides greater than | ||
$200 million of Texas jurisdictional generation capacity, the | ||
electric utility that filed the rider shall initiate a | ||
comprehensive base rate proceeding at the commission not later than | ||
18 months after the date the rider takes effect. | ||
(g) The commission shall adopt rules as necessary to | ||
implement this section. | ||
(h) This section expires September 1, 2031. | ||
SECTION 5. Not later than September 1, 2020, the Public | ||
Utility Commission of Texas shall adopt rules required by Section | ||
36.213(g), 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. | ||
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