TX Util § 36.210 (2021)
2021 Texas Statutes|Utilities Code|Title 2 - Public Utility Regulatory Act|Subtitle B - Electric Utilities|Chapter 36 - Rates|Subchapter E. Cost Recovery and Rate Adjustment|Section 36.210. Periodic Rate Adjustments

Sec. 36.210.  PERIODIC RATE ADJUSTMENTS.  (a)  The commission or a regulatory authority, on the petition of an electric utility, may approve a tariff or rate schedule in which a nonfuel rate may be periodically adjusted upward or downward, based on changes in the parts of the utility's invested capital, as described by Section 36.053, that are categorized as distribution plant, distribution-related intangible plant, and distribution-related communication equipment and networks in accordance with commission rules adopted after consideration of the uniform system of accounts prescribed by the Federal Energy Regulatory Commission.  A periodic rate adjustment must:(1)  be approved or denied in accordance with an expedited procedure that:(A)  provides for appropriate updates of information;(B)  allows for participation by the office and affected parties; and(C)  extends for not less than 60 days;(2)  take into account changes in the number of an electric utility's customers and the effects, on a weather-normalized basis, that energy consumption and energy demand have on the amount of revenue recovered through the electric utility's base rates;(3)  be consistent with the manner in which costs for invested capital described by this subsection were allocated to each rate class, as approved by the commission, in an electric utility's most recent base rate statement of intent proceeding with changes to residential and commercial class rates reflected in volumetric charges to the extent that residential and commercial class rates are collected in that manner based on the electric utility's most recent base rate statement of intent proceeding;(4)  not diminish the ability of the commission or a regulatory authority, on its own motion or on complaint by an affected person as provided by Subchapter D, after reasonable notice and hearing, to change the existing rates of an electric utility for a service after finding that the rates are unreasonable or in violation of law;(5)  be applied by an electric utility on a system-wide basis; and(6)  be supported by the sworn statement of an appropriate employee of the electric utility that affirms that:(A)  the filing is in compliance with the provisions of the tariff or rate schedule; and(B)  the filing is true and correct to the best of the employee's knowledge, information, and belief.(b)  An electric utility in the ERCOT power region, or an unbundled electric utility outside the ERCOT power region in whose service area retail competition is available, that requests a periodic rate adjustment under this section shall:(1)  except as provided by Subsection (f)(3) and to the extent possible, implement simultaneously all nonfuel rates to be adjusted in a 12-month period that are charged by the utility to retail electric providers; and(2)  provide notice to retail electric providers of the approved rates not later than the 45th day before the date the rates take effect.(c)  A periodic rate adjustment approved under this section may not be used to adjust the portion of a nonfuel rate relating to the generation of electricity.(d)  Except as provided by Subsection (d-1), an electric utility may adjust the utility's rates under this section not more than once per year and not more than four times between comprehensive base rate proceedings.(d-1)  For an electric utility subject to Section 36.157, beginning on the effective date of the schedule adopted by the commission under Section 36.157(b), the electric utility may adjust the utility's rates under this section more than four times between base rate proceedings.(e)  A periodic rate adjustment approved under this section may not include indirect corporate costs or capitalized operations and maintenance expenses.(f)  Nothing in this section is intended to:(1)  conflict with a provision contained in a financing order issued under Subchapter I of this chapter or Subchapter G or J, Chapter 39;(2)  affect the limitation on the commission's jurisdiction under Section 32.002;(3)  include in a periodic rate adjustment authorized by this section costs adjusted under a transmission cost-of-service adjustment approved under Section 35.004(d);(4)  limit the jurisdiction of a municipality over the rates, operations, and services of an electric utility as provided by Section 33.001;(5)  limit the ability of a municipality to obtain a reimbursement under Section 33.023 for the reasonable cost of services of a person engaged in an activity described by that section; or(6)  prevent the commission from:(A)  reviewing the investment costs included in a periodic rate adjustment or in the following comprehensive base rate proceeding to determine whether the costs were prudent, reasonable, and necessary; or(B)  refunding to customers any amount improperly recovered through the periodic rate adjustments, with appropriate carrying costs.(g)  The commission shall adopt rules necessary to implement this section.  The rules must provide for:(1)  a procedure by which a tariff or rate schedule is to be reviewed and approved;(2)  filing requirements and discovery consistent with the expedited procedure described by Subsection (a)(1);(3)  an earnings monitoring report that allows the commission or regulatory authority to reasonably determine whether a utility is earning in excess of the utility's allowed return on investment as normalized for weather; (4)  denial of the electric utility's filing if the electric utility is earning more than the utility's authorized rate of return on investment, on a weather-normalized basis, at the time the periodic rate adjustment request is filed; and(5)  a mechanism by which the commission may refund customers any amounts determined to be improperly recovered through a periodic rate adjustment, including any interest on the amounts.(h)  Repealed by Acts 2017, 85th Leg., R.S., Ch. 200 (S.B. 735), Sec. 5, eff. May 27, 2017.(h-1)  Repealed by Acts 2017, 85th Leg., R.S., Ch. 200 (S.B. 735), Sec. 5, eff. May 27, 2017.(i)  Repealed by Acts 2017, 85th Leg., R.S., Ch. 200 (S.B. 735), Sec. 5, eff. May 27, 2017.|Added by Acts 2011, 82nd Leg., R.S., Ch. 196 (S.B. 1693), Sec. 1, eff. May 28, 2011.Amended by: Acts 2015, 84th Leg., R.S., Ch. 20 (S.B. 774), Sec. 1, eff. September 1, 2015.Acts 2017, 85th Leg., R.S., Ch. 200 (S.B. 735), Sec. 2, eff. May 27, 2017.Acts 2017, 85th Leg., R.S., Ch. 200 (S.B. 735), Sec. 5, eff. May 27, 2017.|For expiration of this section, see Subsection (f).