Johnson Bill Sets Up Electric Discount Fund, If Lawmakers Fill It

The text as introduced · 1,157 words

89R9040 CS-D

By: Johnson
S.B. No. 1513

A BILL TO BE ENTITLED

AN ACT

relating to a program to provide assistance for certain retail

electric customers.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 17.007, Utilities Code, is amended by

amending Subsection (a) and adding Subsection (e) to read as

follows:

(a) The Health and Human Services Commission, on request of

the commission, shall assist in :

(1) developing an automatic process for identifying

low-income customers to retail electric providers and certificated

telecommunications utilities to enable those providers and

utilities to offer customer service, discounts, bill payment

assistance, or other methods of assistance ; and

(2) implementing Section 39.9035 .

(e) Subsection (d) does not apply in a state fiscal biennium

in which money is available under Section 39.9035 for the process

established by this section.

SECTION 2. Section 39.002, Utilities Code, is amended to

read as follows:

Sec. 39.002. APPLICABILITY. This chapter, other than

Sections 39.151, 39.1516, 39.155, 39.157(e), 39.161, 39.162,

39.163, 39.203, 39.9035, 39.9051, 39.9052, and 39.914(e), and

Subchapters M and N, does not apply to a municipally owned utility

or an electric cooperative. Sections 39.157(e) , [ and ] 39.203 , and

39.9035 apply only to a municipally owned utility or an electric

cooperative that is offering customer choice. If there is a

conflict between the specific provisions of this chapter and any

other provisions of this title, except for Chapters 40 and 41, the

provisions of this chapter control.

SECTION 3. Subchapter Z, Chapter 39, Utilities Code, is

amended by adding Section 39.9035 to read as follows:

Sec. 39.9035. INCOME-BASED ASSISTANCE FUND. (a) In this

section, "fund" means the income-based assistance fund.

(b) The income-based assistance fund is an account in the

general revenue fund. Money in the account may be appropriated only

for the purposes provided by this section or other law.

(c) The fund consists of:

(1) money appropriated, credited, transferred, or

deposited to the credit of the fund by the legislature;

(2) gifts, grants, or donations made to the fund; and

(3) interest or other earnings attributable to the

investment of money in the fund.

(d) Money in the fund may be appropriated to the commission

and used to provide funding only for the following purposes, in the

following order of priority:

(1) programs to:

(A) assist low-income electric customers by

making available the discounts described by Subsection (f); and

(B) provide one-time bill payment assistance as

described by Subsection (k) to critical care residential customers,

as defined by Section 17.002, who have received notice of an

impending service disconnection for nonpayment;

(2) customer education that provides information on

other assistance programs;

(3) administrative expenses incurred by the

commission in implementing and administering this chapter and

expenses incurred by the office under this chapter; and

(4) reimbursement to the commission and the Health and

Human Services Commission for expenses incurred in the

implementation and administration of the automatic identification

process established under Section 17.007 for customer service

discounts relating to retail electric service, including outreach

expenses the commission determines are reasonable and necessary.

(e) The commission shall adopt rules regarding programs to

assist low-income electric customers in areas where customer choice

is available. The programs may not be targeted to areas served by

municipally owned utilities or electric cooperatives that have not

adopted customer choice.

(f) Programs adopted under Subsection (e) must include a

retail electric service discount program for low-income electric

customers that the commission implements periodically as money is

made available in the fund for the purpose of making the

reimbursements authorized under Subsection (i). The commission by

rule shall require electric cooperatives that have adopted customer

choice, municipally owned utilities that have adopted customer

choice, and retail electric providers to provide the discount. The

commission shall set the amount of the discount as a fixed amount

and may periodically revise the fixed amount. The discount for

electric cooperatives that have adopted customer choice and

municipally owned utilities that have adopted customer choice must

be in addition to any rate reduction that may result from local

programs for low-income electric customers of the municipally owned

utility or electric cooperative.

(g) The commission by rule shall establish eligibility

criteria for the discount program required under Subsection (f).

The criteria must provide that a customer is eligible for a discount

if identified by the Health and Human Services Commission as

eligible as a low-income customer under Section 17.007.

(h) The commission by rule shall prescribe methods of

enrolling customers eligible to receive a discount under Subsection

(f) that are compatible with the automatic identification process

established under Section 17.007. The rules must provide for

automatic enrollment as one enrollment option for customers that

have been identified as low-income customers under Section 17.007.

(i) The commission shall provide reimbursement from the

fund for each electric cooperative, municipally owned utility, or

retail electric provider that provides a discount under Subsection

(f) for the amount of the discount provided to eligible customers.

The commission shall adopt rules providing for the reimbursement.

(j) A retail electric provider may not charge the customer a

fee for receiving a discount.

(k) Programs adopted under Subsection (e) must include a

bill payment assistance program as described by Subsection

(d)(1)(B) that the commission implements periodically as money is

made available in the fund for the purpose of making the

reimbursements authorized under this subsection. The commission

may prescribe the documentation necessary to demonstrate

eligibility for the assistance and may establish additional

eligibility criteria. The Health and Human Services Commission, on

request of the commission, shall assist in the adoption and

implementation of these rules. The commission shall provide

reimbursement from the fund for each electric cooperative,

municipally owned utility, or retail electric provider that

provides bill payment assistance under this subsection for the

amount of the bill payment assistance provided to eligible

customers. The commission shall adopt rules providing for the

reimbursement.

SECTION 4. Section 40.001(a), Utilities Code, is amended to

read as follows:

(a) Notwithstanding any other provision of law, except

Sections 39.155, 39.157(e), [ and ] 39.203, and 39.9035, this chapter

governs the transition to and the establishment of a fully

competitive electric power industry for municipally owned

utilities. With respect to the regulation of municipally owned

utilities, this chapter controls over any other provision of this

title, except for sections in which the term "municipally owned

utility" is specifically used.

SECTION 5. Section 41.001, Utilities Code, is amended to

read as follows:

Sec. 41.001. APPLICABLE LAW. Notwithstanding any other

provision of law, except Sections 39.155, 39.157(e), [ and ] 39.203,

and 39.9035, this chapter governs the transition to and the

establishment of a fully competitive electric power industry for

electric cooperatives. Regarding the regulation of electric

cooperatives, this chapter shall control over any other provision

of this title, except for sections in which the term "electric

cooperative" is specifically used.

SECTION 6. This Act takes effect September 1, 2025.