Bill Text: TX SB853 | 2023-2024 | 88th Legislature | Engrossed
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to electricity service provided by certain municipally owned utilities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2023-05-23 - Placed on General State Calendar [SB853 Detail]
Download: Texas-2023-SB853-Engrossed.html
Bill Title: Relating to electricity service provided by certain municipally owned utilities.
Spectrum: Partisan Bill (Republican 2-0)
Status: (Engrossed - Dead) 2023-05-23 - Placed on General State Calendar [SB853 Detail]
Download: Texas-2023-SB853-Engrossed.html
By: Hancock | S.B. No. 853 |
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relating to electricity service provided by certain 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 that provides service in the Capitol | ||
complex, as defined by Section 443.0071, Government Code. | ||
Sec. 33.152. REVIEW OF RATES; CUSTOMER CHOICE. (a) | ||
Notwithstanding any other law, a group of retail customers may file | ||
a petition for commission review of current or proposed rates of a | ||
municipally owned utility that apply to the petitioning customers. | ||
The petition must be signed by at least five percent of the | ||
municipally owned utility's customers. The signature of a retail | ||
customer of a municipally owned utility may be counted as a valid | ||
signature only on the first filed petition on which that customer's | ||
signature appears. | ||
(b) The commission shall initiate a proceeding not later | ||
than the 90th day after the petition is submitted to determine | ||
whether the rates of the municipally owned utility are consistent | ||
with the rates available to similarly situated customers in areas | ||
of the state that have access to customer choice. If the commission | ||
determines that the rates of the municipally owned utility are | ||
consistent with the rates available to similarly situated customers | ||
in areas of the state that have access to customer choice, the | ||
commission shall deny the petition. | ||
(c) For the purposes of Subsection (b), the rates of the | ||
municipally owned utility are inconsistent with the rates available | ||
to similarly situated customers in areas of the state that have | ||
access to customer choice if an average rate paid by the customers | ||
of the municipally owned utility during the most recent five years | ||
is at least 10 percent higher than the comparable average rate paid | ||
during the same five-year period by similarly situated customers in | ||
areas of the state that have access to customer choice. | ||
(d) If the commission does not deny the petition under | ||
Subsection (b), not later than the 90th day after the date of the | ||
determination described by Subsection (b), the municipally owned | ||
utility 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. | ||
(e) The commission shall conduct a full review of the rates | ||
applicable to the petitioning customer or group to determine | ||
whether those rates are just and reasonable using the standards | ||
prescribed by Chapter 36, notwithstanding the lack of consistency | ||
between those rates and rates available to similarly situated | ||
customers in areas of the state that have access to customer choice. | ||
If the commission determines that the rates are just and | ||
reasonable, the commission shall deny the petition. If the | ||
commission determines that the rates are not just and reasonable, | ||
the commission shall set rates for the petitioning customer or | ||
group 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. | ||
(f) The commission shall: | ||
(1) allow the municipally owned utility an opportunity | ||
to respond to a review conducted under this section; and | ||
(2) make publicly available on the commission's | ||
Internet website the commission's review and the utility's | ||
response. | ||
Sec. 33.153. LIMITATION. The commission may not conduct | ||
more than one review under this subchapter for each municipally | ||
owned utility. | ||
SECTION 2. 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: | ||
(A) under Subchapter F, Chapter 33, subject to | ||
Section 40.051(c); and | ||
(B) 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 administer the renewable energy credits program | ||
under Section 39.904(b) and the natural gas energy credits program | ||
under Section 39.9044(b); | ||
(7) to require reports of municipally owned 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; | ||
and | ||
(8) to evaluate and monitor the cybersecurity | ||
preparedness of a municipally owned utility described by Section | ||
39.1516(a)(3) or (4). | ||
SECTION 3. Section 40.051(c), Utilities Code, is amended to | ||
read as follows: | ||
(c) After a decision to offer customer choice has been made, | ||
Subchapters D, [ |
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action taken under this chapter. | ||
SECTION 4. This Act takes effect September 1, 2023. |