Relating to the recovery of vegetation management costs by electric utilities.

89(R) HB 4302 - Introduced version - Bill Text

89R7760 JXC-D

By: Metcalf

H.B. No. 4302

A BILL TO BE ENTITLED

AN ACT

relating to the recovery of vegetation management costs by electric

utilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Subchapter E, Chapter 36, Utilities Code, is

amended by adding Section 36.2031 to read as follows:

Sec.

36.2031.

VEGETATION MANAGEMENT COST RECOVERY;

ADJUSTMENT OF VEGETATION MANAGEMENT FACTOR.

(a) Section 36.201

does not prohibit the commission from reviewing and providing for

adjustments of an electric utility's vegetation management factor.

(b)

The commission by rule shall implement procedures that

provide for the timely adjustment of an electric utility's

vegetation management factor. The rules must require that the

findings required by Section 36.058 regarding vegetation

management transactions with affiliated interests be made in a

vegetation management reconciliation proceeding or in a rate case

filed under Subchapter C or D. The rules must ensure that:

(1)

the utility collects as contemporaneously as

reasonably possible the vegetation management costs that the

utility incurs and that the commission determines are eligible;

(2)

the total of the utility's eligible vegetation

management costs, including any under-collected or over-collected

amounts to be recovered through an interim adjustment, is allocated

among customer classes based on actual historical calendar month

usage;

(3)

any material balance of amounts under-collected or

over-collected for eligible vegetation management costs is

collected from or refunded to customers through an interim

adjustment:

(A)

not later than the 90th day after the date the

balance is accrued; or

(B)

if the adjustment would result in a total

bill increase of 10 percent or more compared to the total bill in

the month before implementation, not later than a date ordered by

the commission which must be after the 90th day after the date the

balance is accrued; and

(4)

an affected party will receive notice and have the

opportunity to request a hearing before the commission.

(c)

Notwithstanding Subsection (b)(3), on a finding that an

electric utility has an under-collected balance that is the result

of extraordinary vegetation management costs that are unlikely to

continue, the commission may approve an interim vegetation

management adjustment that would defer recovery to take place over

a period longer than 90 days.

(d)

The commission is not required to hold a hearing on the

adjustment of an electric utility's vegetation management factor

under this section.

If the commission holds a hearing, the

commission may consider at the hearing any evidence that is

appropriate and in the public interest.

(e)

A customer of the electric utility, a municipality with

original jurisdiction over the utility, or the office may protest a

vegetation management factor or interim adjustment proposed under

this section. The prudence of costs may not be considered in a

vegetation management factor or interim adjustment proceeding and

may only be considered in a vegetation management reconciliation

proceeding under Subsection (h) or another appropriate proceeding.

(f)

The sole issue that may be considered on a protest of a

vegetation management factor under Subsection (e) is whether the

factor reasonably reflects costs the electric utility will incur so

that the utility will not substantially under-collect or

over-collect the utility's reasonably stated vegetation management

costs on an ongoing basis. The commission may adjust the utility's

vegetation management factor based on its determination on that

issue.

(g)

The commission shall hold a hearing on a protest of an

interim adjustment under Subsection (e) if the adjustment would

result in a total bill increase of 10 percent or more as described

by Subsection (b)(3) or if the adjustment results from

extraordinary vegetation management costs as described by

Subsection (c). In response to a protest of an interim adjustment,

if the commission finds that the electric utility is in a state of

material under-collection or over-collection of the utility's

reasonably stated eligible vegetation management costs and is

projected to remain in that state on an ongoing basis, the

commission shall order the utility to establish or modify an

interim adjustment to address the under-collection or

over-collection in a manner consistent with this section.

(h)

An electric utility shall apply to reconcile the

vegetation management costs at least once every two years. The

application must be made not later than the 180th day after the last

day of the period to be reconciled. The commission may by rule

establish the calendar year timing of the reconciliation period for

each electric utility subject to this section to facilitate

efficient work by the commission. To the extent a reconciliation

results in a change to the electric utility's under-collected or

over-collected vegetation management balance, that change may be

incorporated into an interim adjustment as directed by the

commission.

(i)

A proceeding under this section is not a rate case under

Subchapter C.

SECTION 2. This Act takes effect September 1, 2025.