Relating to a program to provide assistance for certain retail electric customers.

89(R) HB 1359 - Engrossed version - Bill Text

By: Hernandez, Hunter, Thompson, Darby,

H.B. No. 1359

Moody, et al.

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
, electric

utilities that issue bills directly to customers,
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 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. Section 39.402(a), Utilities Code, is amended to

read as follows:

(a) Until the date on which an electric utility subject to

this subchapter is authorized by the commission to implement

customer choice, the rates of the utility shall be regulated under

traditional cost of service regulation and the utility is subject

to all applicable regulatory authority prescribed by this subtitle

and Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until

the date on which an electric utility subject to this subchapter

implements customer choice, the provisions of this chapter, other

than this subchapter, Sections 39.1516
, 39.9035,
and 39.905, and

the provisions relating to the duty to obtain a permit from the

Texas Commission on Environmental Quality for an electric

generating facility and to reduce emissions from an electric

generating facility, shall not apply to that utility. That portion

of any commission order entered before September 1, 2001, to comply

with this subchapter shall be null and void.

SECTION 4. Section 39.452(d), Utilities Code, is amended to

read as follows:

(d) Until the date on which an electric utility subject to

this subchapter implements customer choice:

(1) the provisions of this chapter do not apply to that

electric utility, other than this subchapter, Sections 39.1516
,

39.9035,
and 39.905, the provisions relating to the duty to obtain a

permit from the Texas Commission on Environmental Quality for an

electric generating facility and to reduce emissions from an

electric generating facility, and the provisions of Subchapter G

that pertain to the recovery and securitization of hurricane

reconstruction costs authorized by Sections 39.458-39.463; and

(2) the electric utility is not subject to a rate

freeze and, subject to the limitation provided by Subsection (b),

may file for rate changes under Chapter 36 and for approval of one

or more of the rate rider mechanisms authorized by Sections 39.454

and 39.455.

SECTION 5. Section 39.502(b), Utilities Code, is amended to

read as follows:

(b) Until the date on which an electric utility subject to

this subchapter implements customer choice, the provisions of this

chapter, other than this subchapter and Sections 39.1516
, 39.9035,

and 39.905, do not apply to that utility.

SECTION 6. Section 39.552(b), Utilities Code, is amended to

read as follows:

(b) Until the date on which an electric utility subject to

this subchapter implements customer choice, the provisions of this

chapter, other than this subchapter and Sections 39.1516
, 39.9035,

and 39.905, do not apply to that utility.

SECTION 7. 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:

(1)

"Electric utility"

means an electric utility that

issues a bill directly to a retail customer.

(2)

"Extreme weather emergency"

has the meaning

assigned by Section 39.101.

(3) "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 bill payment assistance 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.

(f)

Programs adopted under Subsection (e) must include a

retail electric service bill payment assistance program for

low-income electric customers for bills due during an extreme

weather emergency that the commission implements periodically as

money is made available in the fund for the purpose of making the

reimbursements authorized under Subsection (g).

(g)

Using money from the fund, the commission shall provide

reimbursement for an electric cooperative, a municipally owned

utility, an electric utility, or a retail electric provider that

provides bill payment assistance under Subsection (f) for the

amount of bill payment assistance provided to eligible customers.

The commission shall adopt rules providing for the reimbursement.

(h)

The commission by rule shall adopt eligibility criteria

for the bill payment assistance program required under Subsection

(f). The criteria must provide that a customer is eligible for bill

payment assistance if the customer:

(1)

is identified by the Health and Human Services

Commission as a low-income customer under Section 17.007; and

(2)

resides in a county affected by an extreme weather

emergency during the billing period for which the assistance is

sought.

(i)

The commission by rule shall prescribe methods of

enrolling customers eligible to receive bill payment assistance for

bills due during an extreme weather emergency under Subsection (f)

that:

(1)

are compatible with the automatic identification

process established under Section 17.007; and

(2)

provide for automatic enrollment as one enrollment

option for customers that have been identified as low-income

customers under Section 17.007.

(j)

A retail electric provider, electric cooperative,

municipally owned utility, or electric utility may not charge the

customer a fee for receiving bill payment assistance under this

section.

(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, electric 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 8. 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 9. 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 10. This Act takes effect September 1, 2025.