Hughes Bill Lets Utilities Charge The Rate Hike Before Approval

The text as introduced · 543 words

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.