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Texas Legislation Round-up: TDU Rate Changes, Vulnerable Customer Identification, Mexico Exports

February 21,2017



Below is a review of some bills impacting competitive electricity markets or retail electric pricing filed with the Texas legislature thus far.

SB 735: TDU Rate Adjustments, Tax Expense

SB 735 would require the PUCT to establish a schedule that requires an electric utility to make periodic filings with the Commission to modify or review a rate charged by the electric utility.

Additionally, for transmission utilities specifically, utilities would be required to make periodic rate review filings, with the PUCT required to adopt rules for periodic transmission rate adjustments, to reflect changed transmission cost for (1) depreciation; (2) plant retirement; and (3) other factors that reduce rates.

The bill would provide that if the income of an electric utility is not subject to corporate federal income tax because of the corporate organization of the utility and the utility's upstream owners, the PUCT may not include federal tax on the income as an expense in setting the utility's rates

The bill would also allow the PUCT to extend its review of utility merger proceedings beyond 180 days
 

HB 2114: Identification Of Vulnerable Customers, Bill Payment Assistance

HB 2114 would authorize the Texas Health and Human Services Commission to provide to the Texas PUC a list of certain vulnerable customers, in order to assist retail electric providers and other entities in providing bill payment assistance to such customers

Specifically, the Texas Health and Human Services Commission would identify and share with the PUCT a list of persons who:

(1) receive medical assistance under the medical assistance program established under Chapter 32, Human Resources Code; or

(2) receive benefits under the supplemental nutrition assistance program established under Chapter 33, Human Resources Code.
 

HB 1665: Electricity Exports To Mexico

HB 1665 would establish provisions which would, under certain agreements, govern switchable electric generating facilities for cross-border dispatch and, if the units are governed by an agreement, limit such exports to Mexico if ERCOT is in a load shed condition. See the bill text for further details

 

Austin Energy Choice, REP Taxes, Elimination of GLO State Power Program, Criminal Offense For Unauthorized Switching

As previously reported, other bills address retail choice at Austin Energy, elimination of the miscellaneous gross receipts tax collected by REPs, termination of the General Land Office's retail electricity supply program, and the creation of a criminal offense for unauthorized switching of a customer's retail electric provider. See the stories below for more details on such bills:

Texas Bills Would Terminate Authority For General Land Office To Sell Retail Power

Texas Bill Would Make Unauthorized Switch in Retail Electric Provider A Criminal Offense

Bill Again Filed To Allow Large C&Is to Take Customer Choice At Austin Energy

King Files Bill To Eliminate Texas Miscellaneous Gross Receipts Tax on Electricity



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