88R27576 JXC-F
	By: King	S.B. No. 1015
	(Spiller)
	Substitute the following for S.B. No. 1015:  No.

	A BILL TO BE ENTITLED
	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.