Legislative Blog
J.B. Williams, J.D.
5 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 5066 - Most of the change address extending transmission to the Permian Basin to provide future load due to mineral interest found there.
SB 1015 - Rate adjustments can now be made twice per year rather than once, along with other modifications to the rules for nonfuel related adjustments.
SB 1016 - Permits presumption of reasonable employee compensation, as defined, when reviewing request for rate adjustments.
SB 1076 - Shortens the time for approval or denial of new transmission facilities.
SB 1093 - Limits access to map of infrastructure and other requirements of information sharing.
5 bills that modify the Utilities Code
Published: 2024-04-19
HB 5066
Electricity service in areas of Texas with a need for transmission projects
One of the factors that the commission shall consider when granting a certificate now includes the need for extending transmission service where existing loads will be underserved. This includes where existing transmission is unreasonably remote, available capacity is unreasonably limited, or the electrical load cannot be interconnected in a timely manner.
The following is added. Reliability plan for the Permian Basin. No later than 1/30/24, the commission must direct an independent organization for ERCOT to develop a reliability plan for the Permian Basin region. The plan must:
- address extending transmission service to areas where mineral resources are;
- address increasing available capacity to meet forecasted load;
- provide available infrastructure to reduce interconnection times
The Permian Basin section expires 9/1/2025.
SB 1015
Periodic rate adjustments by electric utilities
Modifies the rules for nonfuel rate adjustments. It no longer requires at least 60 days. It permits adjustments not more than twice (use to be once) per year. And it use to be not more than 4 times between comprehensive base rate proceedings but that is removed entirely. But the not allowing increases if they are earning more than the utility's allowed return on investment is maintained. And rate increases may not be filed if there is a base rate proceeding pending, or if it has not been 185 days since the base rate proceeding was initiated.
SB 1016
Consideration of employee compensation and benefits in establishing the rates of electric utilities
Employee compensation and benefits include the base salary, wages, incentive compensation, and benefits. It does not include pension or other postemployment benefits; incentive compensation for an officer relating to attaining financial metrics or metrics adverse to customers' interest.
When establishing an electric utility's rates, the regulatory authority shall presume employee compensation and benefits are reasonable if expenses are consistent with market compensation studies completed within the past 3 years.
SB 1076
Deadline for approving a certificate of public convenience and necessity for certain transmission projects
Modifies the timeline for approving or denying an application for a new transmission facility to 180 days after the date of application, rather than the first anniversary after.
SB 1093
Facilities included in the electricity supply chain
Each electric utility, transmission and distribution facility, electric coop, and municipally owned utility must provide the utility's service area boundary map in a geographic information system to the commission. They must use good faith efforts to do this and may use geodatabase feature class or shapefile.
The definition for electricity supply chain has been modified to include the roads necessary to access the facility. The Texas Electricity Supply Chain Security and Mapping Committee make-up is modified to include the executive director of the Texas Department of Transportation.
The commission, the Railroad Commission of Texas, the Texas Division of Emergency Management, and the Texas Department of Transportation are now to provide the staff necessary to assist the committee in carry out their duties and responsibilities.
If a request is made, the committee shall provide a view-only access to the electricity supply chain map to the following:
- an electric utility;
- a transmission and distribution utility;
- an electric coop;
- a municipally owned utility;
- an operator of a gas supply chain facility, as defined in the Natural Resources Code Section 86.004;
- an operator of a gas pipeline facility as described in Section 121.2015
Access to the map is limited to critical natural gas facilities that are located in the requesting entity's service area. Access may not be granted if the entity is not in compliance with Section 37.157. (Seems basically like a sharing of information.) And for gas supply or pipeline entity requests, they are limited to critical natural gas facilities.
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