Bill Text: TX SB1889 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to the consideration of the proportion of long-term debt and equity capitalization in establishing the rates of electric utilities.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to Business & Commerce [SB1889 Detail]
Download: Texas-2023-SB1889-Introduced.html
| 88R3451 ANG-F | ||
| By: Springer | S.B. No. 1889 | |
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| relating to the consideration of the proportion of long-term debt | ||
| and equity capitalization in establishing the rates of electric | ||
| utilities. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 36, Utilities Code, is | ||
| amended by adding Section 36.067 to read as follows: | ||
| Sec. 36.067. CONSIDERATION OF PROPORTION OF LONG-TERM DEBT | ||
| AND EQUITY CAPITALIZATION. (a) Except as provided by Subsection | ||
| (b), when establishing an electric utility's rates, the regulatory | ||
| authority shall calculate the return on invested capital using the | ||
| utility's actual proportion of long-term debt and equity | ||
| capitalization as reported on the utility's most recent financial | ||
| statement issued before the initiation of the applicable rate | ||
| proceeding. | ||
| (b) If the electric utility's actual proportion of equity | ||
| capitalization exceeds 60 percent, the regulatory authority shall | ||
| calculate the return on invested capital using an equity | ||
| capitalization of 60 percent. | ||
| SECTION 2. (a) Section 36.067, Utilities Code, as added by | ||
| this Act, applies only to a proceeding for the establishment of | ||
| rates for which the regulatory authority has not issued a final | ||
| order or decision before the effective date of this Act. | ||
| (b) A proceeding for which the regulatory authority has | ||
| issued a final order or decision before the effective date of this | ||
| Act is governed by the law in effect immediately before that date, | ||
| and that law is continued in effect for that purpose. | ||
| SECTION 3. 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. | ||
