SB1438 - Relating to the procedure for a periodic rate adjustment by an electric utility.

  89R7747 SCR-F     By: Bettencourt S.B. No. 1438       A BILL TO BE ENTITLED   AN ACT   relating to the procedure for a periodic rate adjustment by an   electric utility.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Sections 36.210(a) and (i), Utilities Code, are   amended to read as follows:          (a)  The commission, 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   procedure that :                       (A)   allows for participation by the office and   affected parties; and                       (B)     extends for 90 days, except as provided by   Subsection (i);                (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.          (i)  The commission shall enter a final order on a request   for a periodic rate adjustment under this section not later than the   90th [ 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.  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 3.  This Act takes effect September 1, 2025.