Legislative Blog

J.B. Williams, J.D.

4 bills that modify the Utilities Code

A Blog about 88th Legislature Laws

A Bit of Background

The following backgrounds help summarize the author's views on both the general topic: Texas and more specifically 88th Legislature Laws as it relates to that topic.

Brief Summary of Texas

Texas is truly a Republic. There are a multitude of items that to modify the state constitution must be modified. So there are times when Constitutional amendments are on the voting ballots. While I sometimes abhor the wording, the concept that all of those legally able to vote in Texas must vote on the change is a good one. And bills in Texas are generally short, making it easier for everyone to understand.

Summary of 88th Legislature Laws

The blogs here will discuss the laws passed by Congress and signed into law, as well as those, passed by Congress and approved by the voters to become law. There are a multitude of laws and each time I post blogs I will notate here the current effective date if it is different from prior blogs. I am currently posting bills that took effect immediately - those bills total 336. I am currently posting regarding larger bills, so each blog covers a single bill.

Blog Summary

HB 2263 - Set out guidelines for all utilities to offer energy conservation programs to customers

HB 2555 - Requires approval of resiliency planning before implementation.

HB 2664 - Release of information is permitted for transition of a customer to a new provider.

HB 3390 - Distributed generation facilities must now provide information, including load, so that the interconnected system can be better maintained.

4 bills that modify the Utilities Code

Published: 2024-04-18

HB 2263

Authority of a natural gas local distribution company to offer energy conservation programs

A local distribution company may offer customers an energy conservation program. These are overseen by the railroad commission. A political subdivision served by a local distribution company that is approved by the railroad commission, may not limit, restrict, or otherwise prevent an eligible customer from participating based upon the source of the energy.

A local distribution company may recover costs of energy conservation programs approved by the railroad commission. They must apply to the railroad commission before recovery of the costs and at least once every 3 years after that. They may recover costs prudently incurred to implement the energy conservation program, including costs incurred to design, market, implement, administer, and deliver the program. If the local distribution company provides earnings monitoring report for the prior calendar year that show the company did not earn above the rate of return established in the least effective rates, they may be allowed to recover an amount equal to the reduction in the marginal revenues due to lower sales or demand resulting from the program.

The railroad commission shall require a local distribution company that implements an energy conservation program to provide an annual report on:

1. the performance of the company's energy conservation program for the prior year;
2. the company's planned energy conservation programs for the upcoming year

An application for cost recovery must include:

1. a summary of and objects for the energy conservation program;
2. a description of each such program;
3. a proposed budget for each program;
4. projected consumption reduction or cost savings for each program;
5. any public input

Energy conservation programs may be combined in a portfolio, which:

1. must be designed to overcome barriers to the adoption of energy-efficient equipment, technologies, and processes;
2. be designed to change customer behavior as necessary;
3. may include measures such as:
   • direct financial incentives;
   • technical assistance and information;
   • discounts and rebates for products;
   • weatherizatoin for low-income customers

HB 2555

Transmission and distribution system resiliency planning by and cost recovery for electric utilities

There is already included language for promoting resiliency measures to enable electrical transmission and distribution infrastructure to withstand extreme weather conditions. These included hardening electrical transmission and distribution facilities, undergrounding certain electrical transmission lines, lightning mitigation measures, flood mitigation measures, physical security measures, vegetation management, and wildfire mitigation and response.

The following is being added: An electric utility may file a plan to enhance resiliency of transmission and distribution systems through at least one of the following methods:

1. hardening electrical transmission and distribution facilities;
2. modernizing electrical transmission and distribution facilities;
3. undergrounding certain electrical distribution lines;
4. lightning mitigation measures;
5. flood mitigation measures;
6. information technology;
7. cybersecurity measures;
8. physical security measures;
9. vegetation management; or
10. wildlife mitigation and response

The plan must explain the systemic approach they will use to carry it out during at least a 3 year period. The commission shall consider the following when deciding whether to approve the plan:

1. the extent to which the plan will enhance the resilience;
2. whether the plan prioritizes areas of lower performance;
3. estimated costs of implementation

The commission shall issue an order to approve, modify, or deny a plan not later than 180 days after it is filed. A plan may only be approved if it is in the public interest. A denial is not considered to be a finding of prudence or imprudence of a plan. A modification may be requested by the distributor for a good cause exception if operational needs, business needs, financial conditions, or supply chain or labor conditions warrant it.

A distributor may file a rider to recover costs. This must be filed before the plan is placed in service, and may not be recovered until after it is in service. They may also choose to defer costs for future recovery as a regulatory asset, including depreciation expense and carrying costs. Plan costs must be reasonable and prudent, and may include only incremental costs that are not already being recovered through the base rates or other rate riders. And they must be allocated to the customer classes pursuant to the rate design approved by the commission.

HB 2664

Disclosure of customer information by government-operated utilities

The exception to release of customer information by government-operated utilities is modified to include disclosure to another entity to facilitate transition of customers among retail electric providers or to a retail electric provider.

HB 3390

Provision of information regarding distributed generation and certain electrical loads

Distributed generation facility definition is expanded to include an energy storage facility that is connected or is capable of being connected to a utility system. Transmission service provider definition is added to be a transmission and distribution utility, municipally owned utility, or electric cooperative that owns or operates facilities used for the transmission of electricity.

An certified independent organization may establish protocols that require a distributed generation facility that is connected to the utility system to provide information about the distributed generation facility that is necessary to maintain system reliability. Basically it seems that load information that was not previously provided up the chain from independent distributed generation facilities must now be provided so that the overall system can be maintained.

 

J.B. Williams, J.D.

4,312 federal laws were passed from 1995 through December 2016.
Along with 88,819 federal rules and regulations.