Legislative Blog

J.B. Williams, J.D.

Another 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

SB 1170 - When a municipally owned electric provider opens for customer choice, they are designated as the provider of last resort.

SB 1290 - A study is being done on the effects of wind, solar, and battery on the environment.

SB 1425 - Small providers must provide the commission with annual reports containing specific data.

SB 1710 - Continued support is reduced by 25% each year unless a petition is filed requesting continued additional support. The idea is that after 4 years support goes away entirely but since this was updating old dates, it seems it reduces and then gets reinstated.

SB 1866 - This section applies to non-ERCOT facilities and their non-residential customers that are provided backup power during a grid outage.

Another 5 bills that modify the Utilities Code

Published: 2024-04-22

SB 1170

Initiation of customer choice by municipally owned utilities that provide electric service

A municipally owned electric utility provider is considered the provider of last resort after the initiation of customer choice. If the municipally owned electric provider stops selling electric energy then it may designate the provider of last resort to the commission. If a customer cannot find a retail electric provider, then the provider of last resort must provider service with no interruptions, at a fixed, nondiscountable rate that is at least sufficient to cover the reasonable cost of providing the service. The commission may set the rate for service.

SB 1290

Study of the effects of installation, operation, removal, and disposal of solar, wind turbine, and energy storage equipment

The commission must conduct a study on the current and potential effects of the installation, operation, removal, and disposal of solar, wind turbine, and energy storage equipment on the environment and watersheds. In conducting the study, the commission must consult with:

1. the Department of Agriculture;
2. The Texas A&M Forest Service;
3. the Texas A&M AgriLife Extension Service;
4. The Texas A&M Engineering Extension Service;
5. groundwater conservation districts;
6. river authorities

The commission may have assistance from a university or foundation. The report is due no later than 12/1/2024 and shall be submitted to the governor, lieutenant governor, and speaker of the house. This expires on 1/1/25.

Now I seriously wander how biased the study will be since it is being done by an arm of the government. And I wander if any of the studies that have already been completed will even be reviewed for insight into possible issues at the very least. I read about a lawsuit involving a cattle rancher who sued because the vibrations from wind mills greatly affected his cattle causing a deformation of their feet. He won because there was a long history of his cattle lineage not having this, and when they brought in cattle that was deemed healthy from another ranch, it developed the same issue in less than 1 year.

For those that think Texas will find only the bad because it is an oil state... not exactly. Yes it is an oil state, but remember that oil companies are paying for billboards to advertise wind and solar. These industries heavily rely on the oil industry, so you can talk bad about the oil industry and tout how green and wonderful solar and wind are, but the oil industry still makes money either way. They make it in the products used and in providing the back-up because even with batteries they need back-up. And Texas is leading the way in 'green energy'. I love the idea of being better for the environment but that is not what we are doing - we are just following a single path to more and more expensive electricity while discounting other forms. And the tax credits for installing solar are only for the wealthy because they are only credits against what you pay in taxes. So if you don't pay $10,000 in taxes, then you do NOT get $10,000 off or back in taxes.

SB 1425

Disbursements form the universal service fund for certain small and rural companies

A small provider shall submit annually a report to the commission that includes the following:

1. total operating revenues;
2. total operating expenses;
3. total operating tax expense;
4. rate of return;
5. total invested capital;
6. network access revenue

SB 1710

Universal service fund

This section is basically being updated to modify the dates in the code. For incumbent exchanges service greater than 31,000 access lines on 9/1/22, the support the company is eligible to receive on 12/31/23 under the plan is reduced:

1. on 1/1/25 to 50% of the level of support they were eligible for on 12/31/23;
2. on 1/1/26 to 25% of the level of support they were eligible for on 12/31/23;
3. on 1/1/27 to 0% of the level of support they were eligible for on 12/31/23.

A petition may be filed and if granted by the commission, they may set the amount of support granted as long as it does not exceed:

1. 100% of the level of support they were eligible for on 12/31/23, if the petition is filed before 1/1/24;
2. 75% of the level of support they were eligible for on 12/31/23, if the petition is filed after 1/1/24 and before 1/1/25;
3. 50% of the level of support they were eligible for on 12/31/23, if the petition is filed after 1/1/25 and before 1/1/26;
4. 25% of the level of support they were eligible for on 12/31/23, if the petition is filed after 1/1/26 and before 1/1/27;

SB 1866

Use of customer-sited distributed generation facilities owned by certain non-ERCOT utilities

A customer-sited distributed generation facility means a dispatchable generation facility that is installed on the electric utility's side of the retail meter and owned and operated by the electric utility with a nameplate capacity of not more than 10 megawatts; is capable of generating and providing backup electric service to a customer during a grid outage; and is adjacent to the customer's premises. A host customer is one receiving backup electric service.

This only applies to an entity that it outside the ERCOT areas of Texas.

An electric utility may provide backup to a nonresidential retail customer through customer-sited distributed generation facilities. The commission will establishjust and reasonable rates for this, provided that the costs are allocated as follows:

1. if the host is able to disconnect when not being supplied backup and reduce the system load, the commission shall allocate the cost of owning and operating the facility between the host and utility's broader customer base. This would include allocating any margins from energy sales attributable to the utility to the host in reasonable proportions;
2. the allocation of nonfuel costs to the house must be based on the cost to purchase, install, interconnect, own, operate, and maintain the facility

In a rate proceeding where the utility seeks to recover the investment in the generation facility, the full costs of the investment is eligible for recovery and the cost of the facility and back up service revenues must be allocated among customer classes.

 

J.B. Williams, J.D.

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