SB1837 - Relating to interim rates charged by electric utilities during a rate suspension period.

  89R9522 SCR-F     By: Hughes S.B. No. 1837       A BILL TO BE ENTITLED   AN ACT   relating to interim rates charged by electric utilities during a   rate suspension period.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 36.062, Utilities Code, is amended to   read as follows:          Sec. 36.062.  CONSIDERATION OF CERTAIN EXPENSES.  The   regulatory authority may not consider for ratemaking purposes:                (1)  an expenditure for legislative advocacy, made   directly or indirectly, including legislative advocacy expenses   included in trade association dues;                (2)  a payment made to cover costs of an accident,   equipment failure, or negligence at a utility facility owned by a   person or governmental entity not selling power in this state,   other than a payment made under an insurance or risk-sharing   arrangement executed before the date of loss;                (3)  an expenditure for costs of processing a refund or   credit under Section 36.1091 [ 36.110 ]; or                (4)  any other expenditure, including an executive   salary, advertising expense, legal expense, or civil penalty or   fine, the regulatory authority finds to be unreasonable,   unnecessary, or not in the public interest.          SECTION 2.  Subchapter C, Chapter 36, Utilities Code, is   amended by adding Section 36.1091 to read as follows:           Sec.   36.1091.     INTERIM RATES. (a)   During a suspension   period ordered under Section 36.108, an electric utility may put an   interim rate into effect throughout the area in which the utility   sought to change its rates.   The interim rate may not exceed the   proposed rate.           (b)     An electric utility operating inside ERCOT that   implements an interim rate under this section must give notice to   each retail electric provider in the utility's service area at   least 45 days before the effective date of the interim rate.           (c)  The electric utility:                 (1)     shall refund or credit against future bills money   collected under the interim rates in excess of the rate finally   ordered; and                 (2)     may surcharge bills to recover the amount by which   the money collected under the interim rates is less than the money   that would have been collected under the rate finally ordered.          SECTION 3.  Section 36.211(b), Utilities Code, is amended to   read as follows:          (b)  In a rate proceeding under Subchapter D, or if requested   by an electric utility in the utility's statement of intent   initiating a rate proceeding under Subchapter C, notwithstanding   Section 36.1091 [ 36.109(a) ], the final rate set in the proceeding,   whether a rate increase or rate decrease, shall be made effective   for consumption on and after the 155th day after the date the   rate-filing package is filed.          SECTION 4.  Sections 36.109 and 36.110, Utilities Code, are   repealed.          SECTION 5.  The changes in law made by this Act apply only to   a rate proceeding initiated on or after the effective date of this   Act.  A rate proceeding initiated before the effective date of this   Act is governed by the law in effect on the date the proceeding was   initiated, and the former law is continued in effect for that   purpose.          SECTION 6.  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, 2025.