By: Fraser	S.B. No. 1945
	(In the Senate - Filed March 13, 2015; March 25, 2015, read
	first time and referred to Committee on Natural Resources and
	Economic Development; April 16, 2015, reported adversely, with
	favorable Committee Substitute by the following vote:  Yeas 7,
	Nays 3; April 16, 2015, sent to printer.)
Click here to see the committee vote
	COMMITTEE SUBSTITUTE FOR S.B. No. 1945	By:  Fraser

	A BILL TO BE ENTITLED
	AN ACT
	relating to electricity service provided by municipally owned
	utilities.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Chapter 33, Utilities Code, is amended by adding
	Subchapter F to read as follows:
	SUBCHAPTER F.  REVIEW OF RATES OF CERTAIN MUNICIPAL UTILITIES
	Sec. 33.151.  APPLICABILITY. This subchapter applies only
	to a municipally owned utility:
	(1)  that serves at least 400,000 customers; and
	(2)  whose service area is located in the ERCOT power
	region in a municipality with a population of less than 1.3 million.
	Sec. 33.152.  REVIEW OF RATES; CUSTOMER CHOICE.
	(a)  Notwithstanding any other law, a retail customer or group of
	customers with a total usage of more than 25 million kilowatt hours
	per year may file a petition for commission review of current or
	proposed rates of a municipally owned utility that apply to the
	petitioning customers.
	(b)  Not later than the 90th day after the date a petition is
	filed with the commission, the municipally owned utility that is
	the subject of the petition shall file a rate application with the
	commission that complies in all material respects with the rules
	and forms prescribed by the commission.  The commission for good
	cause may extend the deadline for filing the rate application.
	(c)  The commission shall conduct a full review of the rates
	that apply to the petitioning customers to determine whether the
	rates are:
	(1)  just and reasonable under Chapter 36; and
	(2)  consistent with rates available to similarly
	situated customers in areas of the state that have access to
	customer choice.
	(d)  If the commission finds that the rates are not just and
	reasonable or are not consistent with the rates available to
	similarly situated customers in areas of the state that have access
	to customer choice, the commission shall:
	(1)  set rates for the petitioning customer or
	customers that are just, reasonable, and consistent with the rates
	available to similarly situated customers in areas of the state
	that have access to customer choice; or
	(2)  set cost-based transmission and distribution
	rates for the municipally owned utility and allow a petitioning
	customer or customers to purchase electricity through a retail
	electric provider.
	SECTION 2.  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, 2015.
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