S.B. No. 1015
 
 
 
 
AN ACT
  relating to periodic rate adjustments by electric utilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 36.210, Utilities Code, is amended by
  amending Subsections (a), (d), and (g) and adding Subsections (h)
  and (i) to read as follows:
         (a)  The commission [or a regulatory authority], on the
  petition of an electric utility, may approve a tariff or rate
  schedule in which a nonfuel rate may be periodically adjusted
  upward or downward, based on changes in the parts of the utility's
  invested capital, as described by Section 36.053, that are
  categorized or functionalized as distribution plant,
  distribution-related intangible plant, and distribution-related
  communication equipment and networks in accordance with commission
  rules adopted after consideration of the uniform system of accounts
  prescribed by the Federal Energy Regulatory Commission.  A
  periodic rate adjustment must:
               (1)  be approved or denied in accordance with a [an
  expedited] procedure that[:
                     [(A)  provides for appropriate updates of
  information;
                     [(B)]  allows for participation by the office and
  affected parties; [and
                     [(C)  extends for not less than 60 days;]
               (2)  take into account 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;
               (3)  be consistent with the manner in which costs for
  invested capital described by this subsection were allocated to
  each rate class, as approved by the commission, in an electric
  utility's most recent base rate statement of intent proceeding with
  changes to residential and commercial class rates reflected in
  volumetric charges to the extent that residential and commercial
  class rates are collected in that manner based on the electric
  utility's most recent base rate statement of intent proceeding;
               (4)  not diminish the ability of the commission or a
  regulatory authority, on its own motion or on complaint by an
  affected person as provided by Subchapter D, after reasonable
  notice and hearing, to change the existing rates of an electric
  utility for a service after finding that the rates are unreasonable
  or in violation of law;
               (5)  be applied by an electric utility on a system-wide
  basis; and
               (6)  be supported by the sworn statement of an
  appropriate employee of the electric utility that affirms that:
                     (A)  the filing is in compliance with the
  provisions of the tariff or rate schedule; and
                     (B)  the filing is true and correct to the best of
  the employee's knowledge, information, and belief.
         (d)  An [Except as provided by Subsection (d-1), an] electric
  utility may adjust the utility's rates under this section not more
  than twice [once] per year [and not more than four times between
  comprehensive base rate proceedings].
         (g)  The commission shall adopt rules necessary to implement
  this section. The rules must provide for:
               (1)  a procedure by which a tariff or rate schedule is
  to be reviewed and approved;
               (2)  filing requirements and discovery consistent with
  [the expedited procedure described by] Subsection (a) [(a)(1)];
               (3)  an earnings monitoring report that allows the
  commission [or regulatory authority] to reasonably determine
  whether a utility is earning in excess of the utility's allowed
  return on investment as normalized for weather;
               (4)  denial of the electric utility's filing if the
  electric utility is earning more than the utility's authorized rate
  of return on investment, on a weather-normalized basis, at the time
  the periodic rate adjustment request is filed; and
               (5)  a mechanism by which the commission may refund
  customers any amounts determined to be improperly recovered through
  a periodic rate adjustment, including any interest on the amounts.
         (h)  An electric utility may file a request for a periodic
  rate adjustment under this section on any day on which the
  commission is open for business, except that if the utility has a
  base rate proceeding pending, the utility may not file the request
  before the 185th day after the date the base rate proceeding was
  initiated. The electric utility may revise a request to reflect the
  final order issued in the base rate proceeding.  The fact that an
  electric utility has a base rate proceeding pending during a
  proceeding conducted under this section does not establish grounds
  for dismissal of either proceeding.
         (i)  The commission shall enter a final order on a request
  for a periodic rate adjustment under this section not later than the
  60th day after the date the request is filed.  The commission may
  extend the deadline for not more than 15 days for good cause.
         SECTION 2.  Section 36.210(d-1), Utilities Code, is
  repealed.
         SECTION 3.  The changes in law made by this Act apply only to
  a proceeding before the Public Utility Commission of Texas, or
  other regulatory authority described by Section 11.003, Utilities
  Code, that commences on or after the effective date of this Act. A
  proceeding before the Public Utility Commission of Texas or other
  regulatory authority described by Section 11.003, Utilities Code,
  that commenced before the effective date of this Act is governed by
  the law in effect on the date the proceeding commenced, and that law
  is continued in effect for that purpose.
         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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1015 passed the Senate on
  April 5, 2023, by the following vote: Yeas 31, Nays 0; and that
  the Senate concurred in House amendment on May 25, 2023, by the
  following vote: Yeas 31, Nays 0.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1015 passed the House, with
  amendment, on May 23, 2023, by the following vote: Yeas 135,
  Nays 2, two present not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor