Bill Text: TX HB3073 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to financing programs for low-income electric customers and certain other electric customers; imposing a fee.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2017-03-27 - Referred to State Affairs [HB3073 Detail]
Download: Texas-2017-HB3073-Introduced.html
85R8977 JXC-D | ||
By: Rodriguez of Travis | H.B. No. 3073 |
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relating to financing programs for low-income electric customers | ||
and certain other electric customers; imposing a fee. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 17.007, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 17.007. ELIGIBILITY PROCESS FOR CUSTOMER SERVICE | ||
DISCOUNTS. The commission by rule shall provide for an integrated | ||
eligibility process for customer service discounts, including | ||
discounts under Sections 39.9035 [ |
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SECTION 2. Section 39.002, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 39.002. APPLICABILITY. This chapter, other than | ||
Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, 39.904, | ||
39.9051, 39.9052, and 39.914(e), does not apply to a municipally | ||
owned utility or an electric cooperative. Sections 39.157(e), | ||
39.203, and 39.904, however, apply only to a municipally owned | ||
utility or an electric cooperative that is offering customer | ||
choice. If there is a conflict between the specific provisions of | ||
this chapter and any other provisions of this title, except for | ||
Chapters 40 and 41, the provisions of this chapter control. | ||
SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is | ||
amended by adding Section 39.9035 to read as follows: | ||
Sec. 39.9035. LOW-INCOME ELECTRIC CUSTOMERS PROGRAM FUND. | ||
(a) In this section, "critical care residential customer" means a | ||
residential customer who has a person permanently residing in the | ||
customer's home who is diagnosed by a physician as being dependent | ||
on an electric-powered medical device to sustain life. | ||
(b) The commission shall adopt and enforce rules requiring | ||
transmission and distribution utilities to establish a low-income | ||
electric customers program fund under commission oversight. The | ||
rules must provide for: | ||
(1) the fund to be established as a trust fund outside | ||
of the state treasury; | ||
(2) the fund to be held by an administrator selected by | ||
the transmission and distribution utilities in accordance with | ||
standards adopted by the commission; and | ||
(3) any interest earned on money in the fund to be | ||
credited to the fund. | ||
(c) The administrator serves as trustee of the fund for the | ||
benefit of low-income electric customer programs described by this | ||
section, and in accordance with commission rules, the administrator | ||
may make any payments or reimbursements from the fund to further the | ||
programs. Commission rules must prescribe the maximum percentage | ||
of money available in the fund that may be used for the expenses of | ||
administering the fund and for annual independent auditing of the | ||
fund and expenditures and other transactions related to the fund. | ||
The commission or its agents may at any time examine any records | ||
related to the fund or investigate any fund-related expenditures or | ||
expenses. The administrator and each transmission and distribution | ||
utility shall fully cooperate with any investigation regarding the | ||
fund conducted by the commission or its agents. | ||
(d) The commission by rule shall impose a nonbypassable | ||
low-income electric customers program fund fee to be set by the | ||
commission in an amount not to exceed 50 cents per megawatt hour, | ||
allocated to customers based on the amount of kilowatt hours used. | ||
(e) The commission shall provide for a nonbypassable fee in | ||
the same amount as the fee imposed under Subsection (d) to be | ||
imposed on the retail electric customers of a municipally owned | ||
utility or electric cooperative beginning on the first day of the | ||
sixth month preceding the date on which the utility or cooperative | ||
implements customer choice. | ||
(f) Commission rules adopted under this section must | ||
provide that the low-income electric customers program fund fees | ||
collected for the programs described by this section are collected | ||
through the rates of the transmission and distribution service | ||
providers and deposited into the low-income electric customers | ||
program fund. | ||
(g) Money in the low-income electric customers program fund | ||
may be spent only for the following regulatory purposes and must be | ||
allocated as follows: | ||
(1) not more than 85 percent of the money available in | ||
the fund must be used to provide a 15 percent reduced rate for | ||
low-income households for each billing period; | ||
(2) not more than 4 percent of the money available in | ||
the fund must be used for bill payment assistance for critical care | ||
residential customers with total household income not to exceed 400 | ||
percent of the federal poverty guidelines; and | ||
(3) not less than 11 percent of the money available in | ||
the fund must be used to finance low-income electric customer | ||
weatherization programs to be operated by a statewide network of | ||
federal weatherization program providers under federal | ||
weatherization program guidelines. | ||
(h) Until customer choice is introduced in a power region, | ||
an electric utility may not reduce, in any manner, programs already | ||
offered to assist low-income electric customers. | ||
(i) The commission shall adopt rules for a retail electric | ||
provider to determine a reduced rate for eligible customers to be | ||
discounted off the standard retail service package as approved by | ||
the commission under Section 39.106 and shall require a retail | ||
electric provider to apply the same reduction to any rate plan under | ||
which an eligible low-income electric customer is receiving | ||
service. Municipally owned utilities and electric cooperatives | ||
shall establish a reduced rate for eligible customers to be | ||
discounted off the standard retail service package established | ||
under Section 40.053 or 41.053, as appropriate. The reduced rate | ||
for a retail electric provider shall result in a total charge for | ||
each billing period that is at least 15 percent lower than the | ||
amount the customer would otherwise be charged for each billing | ||
period. To the extent the low-income electric customers program | ||
fund is insufficient to pay for the 15 percent rate reduction, the | ||
commission may increase the fee to an amount of not more than 50 | ||
cents per megawatt hour, as provided by Subsection (d). If the fee | ||
is set at 50 cents per megawatt hour or if the commission determines | ||
that revenues anticipated to be due for deposit to the fund are | ||
insufficient to pay for the 15 percent rate reduction, the | ||
commission shall reduce the rate of the reduction to less than 15 | ||
percent. For a municipally owned utility or electric cooperative, | ||
the reduced rate shall be equal to an amount that can be fully | ||
funded by that portion of the nonbypassable fee proceeds paid by the | ||
municipally owned utility or electric cooperative that is allocated | ||
to the utility or cooperative by the commission under Subsection | ||
(g) for programs for low-income customers of the utility or | ||
cooperative. The reduced rate for municipally owned utilities and | ||
electric cooperatives under this section is in addition to any rate | ||
reduction that may result from local programs for low-income | ||
customers of the municipally owned utilities or electric | ||
cooperatives. | ||
(j) A retail electric provider, municipally owned utility, | ||
or electric cooperative seeking reimbursement from the low-income | ||
electric customers program fund may not charge an eligible | ||
low-income customer a rate higher than the appropriate rate | ||
determined under Subsection (i). Commission rules must provide for | ||
a municipally owned utility or electric cooperative subject to the | ||
nonbypassable fee under Subsection (e) to be reimbursed from the | ||
fund for the difference between the reduced rate and the rate | ||
established under Section 40.053 or 41.053, as appropriate. A | ||
retail electric provider shall be reimbursed from the fund for the | ||
difference between the reduced rate and the rate plan under which | ||
the customer is receiving service. The commission shall adopt | ||
rules providing for the reimbursement. | ||
(k) The eligibility rules must provide that an electric | ||
customer is eligible for the reduced rates determined under | ||
Subsection (i) if: | ||
(1) the customer's household income is not more than | ||
125 percent of the federal poverty guidelines; | ||
(2) the customer receives benefits under the | ||
supplemental nutrition assistance program established under | ||
Chapter 33, Human Resources Code; or | ||
(3) the customer receives medical assistance under the | ||
medical assistance program established under Chapter 32, Human | ||
Resources Code. | ||
(l) The eligibility rules must provide that: | ||
(1) an electric customer eligible for the reduced | ||
rates determined under Subsection (i) is also eligible for reduced | ||
rates for telecommunications services offered for low-income | ||
customers; and | ||
(2) a customer eligible for reduced rates for | ||
telecommunications services offered for low-income customers is | ||
also eligible for the reduced rates determined under Subsection | ||
(i). | ||
(m) The commission shall adopt rules providing for methods | ||
of enrolling customers eligible to receive the reduced rates | ||
determined under Subsection (i). The rules must provide for | ||
automatic enrollment as one enrollment option. The Health and | ||
Human Services Commission, on request of the commission, shall | ||
assist in the adoption and implementation of these rules. The | ||
commission and the Health and Human Services Commission shall enter | ||
into a memorandum of understanding establishing the respective | ||
duties of the agencies in relation to the automatic enrollment. | ||
(n) The commission shall adopt rules governing the bill | ||
payment assistance program provided under Subsection (g)(2). The | ||
commission may prescribe the documentation necessary to | ||
demonstrate eligibility for the assistance and may establish | ||
additional eligibility criteria. The Health and Human Services | ||
Commission, on request of the commission, shall assist in the | ||
adoption and implementation of these rules. | ||
(o) A retail electric provider is prohibited from charging | ||
the customer a fee for participation in the reduced rate program. | ||
(p) Notwithstanding Subsections (d), (e), (f), and (i), the | ||
low-income electric customers program fund fee may not be imposed | ||
after August 31, 2027. After that date, the commission and the | ||
administrator shall undertake to continue the low-income electric | ||
customers programs described by this section until the balance of | ||
the fund is exhausted. | ||
SECTION 4. Section 39.905(f), Utilities Code, is amended to | ||
read as follows: | ||
(f) Each [ |
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include in its energy efficiency plan a [ |
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energy efficiency program and a weatherization program as described | ||
by Section 39.9035(g) [ |
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the program shall count toward the transmission and distribution | ||
utility's energy efficiency goal. The commission shall determine | ||
the appropriate level of funding to be allocated to both the | ||
required weatherization programs [ |
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low-income energy efficiency programs in each unbundled | ||
transmission and distribution utility service area. The level of | ||
funding for the required weatherization programs and low-income | ||
energy efficiency programs shall be provided from money approved by | ||
the commission for the transmission and distribution utility's | ||
energy efficiency programs. The commission shall ensure that | ||
annual expenditures for the required weatherization programs and | ||
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transmission and distribution utility are not less than 10 percent | ||
of the transmission and distribution utility's energy efficiency | ||
budget for the year. A required weatherization program or a | ||
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the same audit requirements that apply to federal weatherization | ||
subrecipients. In an energy efficiency cost recovery factor | ||
proceeding related to expenditures under this subsection, the | ||
commission shall make findings of fact regarding whether the | ||
utility meets requirements imposed under this subsection. The | ||
state agency that administers the federal weatherization | ||
assistance program shall participate in energy efficiency cost | ||
recovery factor proceedings related to expenditures under this | ||
subsection to ensure that the required weatherization programs and | ||
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federal weatherization programs and adequately funded. | ||
SECTION 5. Section 40.001(a), Utilities Code, is amended to | ||
read as follows: | ||
(a) Notwithstanding any other provision of law, except | ||
Sections 39.155, 39.157(e), 39.203, 39.903, 39.9035, and 39.904, | ||
this chapter governs the transition to and the establishment of a | ||
fully competitive electric power industry for municipally owned | ||
utilities. With respect to the regulation of municipally owned | ||
utilities, this chapter controls over any other provision of this | ||
title, except for sections in which the term "municipally owned | ||
utility" is specifically used. | ||
SECTION 6. Section 40.004, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 40.004. JURISDICTION OF COMMISSION. Except as | ||
specifically otherwise provided in this chapter, the commission has | ||
jurisdiction over municipally owned utilities only for the | ||
following purposes: | ||
(1) to regulate wholesale transmission rates and | ||
service, including terms of access, to the extent provided by | ||
Subchapter A, Chapter 35; | ||
(2) to regulate certification of retail service areas | ||
to the extent provided by Chapter 37; | ||
(3) to regulate rates on appeal under Subchapters D | ||
and E, Chapter 33, subject to Section 40.051(c); | ||
(4) to establish a code of conduct as provided by | ||
Section 39.157(e) applicable to anticompetitive activities and to | ||
affiliate activities limited to structurally unbundled affiliates | ||
of municipally owned utilities, subject to Section 40.054; | ||
(5) to establish terms and conditions for open access | ||
to transmission and distribution facilities for municipally owned | ||
utilities providing customer choice, as provided by Section 39.203; | ||
(6) to require collection of the nonbypassable fees | ||
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(7) [ |
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program under Section 39.904(b) and the natural gas energy credits | ||
program under Section 39.9044(b); and | ||
(8) [ |
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utility operations only to the extent necessary to: | ||
(A) enable the commission to determine the | ||
aggregate load and energy requirements of the state and the | ||
resources available to serve that load; or | ||
(B) enable the commission to determine | ||
information relating to market power as provided by Section 39.155. | ||
SECTION 7. Section 41.001, Utilities Code, is amended to | ||
read as follows: | ||
Sec. 41.001. APPLICABLE LAW. Notwithstanding any other | ||
provision of law, except Sections 39.155, 39.157(e), 39.203, | ||
39.903, 39.9035, and 39.904, this chapter governs the transition to | ||
and the establishment of a fully competitive electric power | ||
industry for electric cooperatives. Regarding the regulation of | ||
electric cooperatives, this chapter shall control over any other | ||
provision of this title, except for sections in which the term | ||
"electric cooperative" is specifically used. | ||
SECTION 8. The Public Utility Commission of Texas shall | ||
adopt or revise, as necessary to implement this Act, rules | ||
governing the low-income electric customers program fund under | ||
Section 39.9035, Utilities Code, as added by this Act, not later | ||
than January 1, 2018. | ||
SECTION 9. This Act takes effect September 1, 2017. |