Bill Text: TX HB2910 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to electric rates imposed on residential customers by certain electric utilities in the ERCOT region.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-23 - Referred to State Affairs [HB2910 Detail]
Download: Texas-2017-HB2910-Introduced.html
| 85R12223 JXC-F | ||
| By: Flynn | H.B. No. 2910 | |
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| relating to electric rates imposed on residential customers by | ||
| certain electric utilities in the ERCOT region. | ||
| 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 EQUITY FOR RESIDENTIAL CUSTOMERS OF | ||
| CERTAIN ELECTRIC UTILITIES IN ERCOT. (a) To the extent of any | ||
| conflict between this section and another provision of this | ||
| chapter, this section controls. | ||
| (b) If the commission finds that an electric utility that | ||
| operates in the ERCOT region charges nonbypassable distribution | ||
| rates for residential customers that are equal to or more than 175 | ||
| percent of the average of the residential distribution rates for | ||
| all transmission and distribution utilities operating in the ERCOT | ||
| region, the rates of the utility are considered to be unreasonable | ||
| and the commission shall initiate an inquiry under this subchapter. | ||
| (c) In any rate proceeding for an electric utility after the | ||
| commission finds that the utility's rates are unreasonable as | ||
| described by Subsection (b), the commission shall: | ||
| (1) ensure that the utility's expenses for | ||
| federal income tax are limited to only that income of the utility | ||
| that is subject to the federal tax, after accounting for tax | ||
| deductions associated with distributions of income from the | ||
| utility; | ||
| (2) ensure that the expenses of the utility are | ||
| reasonable and necessary, including expenses charged to the utility | ||
| by an affiliate; | ||
| (3) ensure that utility's invested capital is used and | ||
| useful in providing service to the public; and | ||
| (4) allocate a sufficient portion of the utility's | ||
| invested capital related to the distribution function to the | ||
| postage stamp method of pricing under Section 35.004(d) in a manner | ||
| that allows the utility to recover a reasonable return on the | ||
| utility's invested capital as described by Section 36.051, except | ||
| that the utility's residential distribution rates may not exceed | ||
| 133 percent of the average of the residential rates for all | ||
| transmission and distribution utilities operating in the ERCOT | ||
| region. | ||
| (d) The commission shall require an electric utility | ||
| described by Subsection (b) to file annual plans with the | ||
| commission describing future planned additions to invested | ||
| capital, including an analysis of the impact of the additions on | ||
| customer rates. | ||
| SECTION 2. Section 37.059(a), Utilities Code, is amended to | ||
| read as follows: | ||
| (a) The commission may revoke or amend a certificate after | ||
| notice and hearing if the commission finds that: | ||
| (1) the certificate holder has never provided or is no | ||
| longer providing service in all or any part of the certificated | ||
| area; or | ||
| (2) the certificate holder operates in the ERCOT | ||
| region and charges nonbypassable distribution rates for | ||
| residential customers that are equal to or more than 175 percent of | ||
| the average of the residential distribution rates for all | ||
| transmission and distribution utilities operating in the ERCOT | ||
| region. | ||
| SECTION 3. This Act takes effect September 1, 2017. | ||
