reglab/statecodes huggingface dataset:
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.456. Franchise Agreements

Sec. 39.456.  FRANCHISE AGREEMENTS.  A municipality, with the agreement of an electric utility, may accelerate the expiration date of a franchise agreement that was in existence on September 1, 1999.  Any new franchise agreement must be approved by the governing body of the municipality.  To the extent that a new franchise agreement would result in an increase in the payment of franchise fees to the municipality, and subject to the terms of the franchise agreement, either the electric utility or the municipality, without the need for a rate proceeding under Chapter 36, may file with the commission for approval of a rider for the electric utility's recovery of franchise payments resulting from the agreement, so long as such rider is collected only from customers of the electric utility that are located within the boundaries of the municipality.
Added by Acts 2005, 79th Leg., Ch. 1072 (H.B. 1567), Sec. 1, eff. June 18, 2005.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.457. Contractual Rights

Sec. 39.457.  CONTRACTUAL RIGHTS.  In the event that the electric utility subject to this subchapter either merges, consolidates, or otherwise becomes affiliated with another owner of electric generation, or completes the jurisdictional separation authorized by Section 39.452(e) and the resulting vertically integrated utility proposes to join a regional transmission organization, and either action adversely affects the rights or obligations of an electric cooperative under a wholesale generation or transmission agreement entered into before the effective date of this subchapter or otherwise adversely affects the electric cooperative's access to its existing generation resources under said agreements, then the utility shall submit a proposal agreeable to the cooperative and the utility for addressing such rights and obligations in the appropriate regulatory proceeding.  Such proposal shall be consistent with applicable law regarding the rights and obligations of the electric cooperative and the utility under such existing generation or transmission agreements.
Added by Acts 2005, 79th Leg., Ch. 1072 (H.B. 1567), Sec. 1, eff. June 18, 2005.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.458. Recovery and Securitization of Hurricane Reconstruction Costs; Purpose

Sec. 39.458.  RECOVERY AND SECURITIZATION OF HURRICANE RECONSTRUCTION COSTS; PURPOSE.  (a)  The purpose of this section and of Sections 39.459-39.463 is to enable an electric utility subject to this subchapter to obtain timely recovery of hurricane reconstruction costs and to use securitization financing to recover these costs, because that type of debt will lower the carrying costs associated with the recovery of hurricane reconstruction costs relative to the costs that would be incurred using conventional financing methods.  The proceeds of the transition bonds may be used only for the purposes of reducing the amount of recoverable hurricane reconstruction costs, as determined by the commission in accordance with this subchapter, through the refinancing or retirement of utility debt or equity.
(b)  It is the intent of the legislature that:
(1)  securitization of hurricane reconstruction costs will be subject to the same procedures, standards, and protections for the securitization of stranded costs and regulatory assets under Subchapter G in effect on the effective date of this section, except as provided by this subchapter; and
(2)  the commission will ensure that securitization of hurricane reconstruction costs provides greater tangible and quantifiable benefits to ratepayers than would have been achieved without the issuance of transition bonds.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 11 (H.B. 163), Sec. 2, eff. May 31, 2006.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.459. Hurricane Reconstruction Costs

Sec. 39.459.  HURRICANE RECONSTRUCTION COSTS.  (a)  In this subchapter:
(1)  "Hurricane reconstruction costs" means reasonable and necessary costs, including costs expensed, charged to the storm reserve, or capitalized, that are incurred by an electric utility subject to this subchapter due to any activity or activities conducted by or on behalf of the electric utility in connection with the restoration of service associated with electric power outages affecting customers of the electric utility as the result of Hurricane Rita, including mobilization, staging, and construction, reconstruction, replacement, or repair of electric generation, transmission, distribution, or general plant facilities.
(2)  "Hurricane Rita" means the hurricane of that name that struck the coastal region of this state in September 2005.
(b)  If the commission determines it to be appropriate, hurricane reconstruction costs may include carrying costs from the date on which the hurricane reconstruction costs were incurred until the date that transition bonds are issued.
(c)  To the extent a utility subject to this subchapter receives insurance proceeds, governmental grants, or any other source of funding that compensates it for hurricane reconstruction costs, those amounts shall be used to reduce the utility's hurricane reconstruction costs recoverable from customers.  If the timing of a utility's receipt of those amounts prevents their inclusion as a reduction to the hurricane reconstruction costs that are securitized, the commission shall take those amounts into account in:
(1)  the utility's next base rate proceeding; or
(2)  any proceeding in which the commission considers hurricane reconstruction costs.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 11 (H.B. 163), Sec. 2, eff. May 31, 2006.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.461. Nonbypassable Charges

Sec. 39.461.  NONBYPASSABLE CHARGES.  The commission may include terms in the financing order to ensure that the imposition and collection of transition charges associated with the recovery of hurricane reconstruction costs are nonbypassable by imposing restrictions on bypassability of the type provided for in this chapter or by alternative means of ensuring nonbypassability, as the commission considers appropriate, consistent with the purposes of securitization.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 11 (H.B. 163), Sec. 2, eff. May 31, 2006.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.462. Determination of Hurricane Reconstruction Costs

Sec. 39.462.  DETERMINATION OF HURRICANE RECONSTRUCTION COSTS.  (a)  An electric utility subject to this subchapter is entitled to recover hurricane reconstruction costs consistent with the provisions of this subchapter and is entitled to seek recovery of amounts not recovered under this subchapter, including hurricane reconstruction costs not yet incurred at the time an application is filed under Subsection (b), in its next base rate proceeding or through any other proceeding authorized by Subchapter C, Chapter 36.
(b)  The commission shall issue an order determining the amount of hurricane reconstruction costs eligible for recovery and securitization not later than the 150th day after the date an electric utility subject to this subchapter files an application seeking that determination.  The 150-day period begins on the date the electric utility files the application, even if the filing occurs before the effective date of this section.
(c)  On issuance by the commission of an order determining the amount of eligible hurricane reconstruction costs, an electric utility subject to this subchapter may file an application for a financing order, which shall be governed by the procedures in Subchapter G.
(d)  To the extent the commission has made a determination of the eligible hurricane reconstruction costs of an electric utility subject to this subchapter before the effective date of this section, that determination may provide the basis for the utility's application for a financing order pursuant to this subchapter and Subchapter G.  A previous commission determination does not preclude the utility from requesting recovery of additional hurricane reconstruction costs eligible for recovery under this subchapter, but not previously authorized by the commission.
(e)  A rate proceeding under Chapter 36 is not required to determine the amount of recoverable hurricane reconstruction costs as provided by this section.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 11 (H.B. 163), Sec. 2, eff. May 31, 2006.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter J. Transition to Competition in Certain › Section 39.463. Severability

Sec. 39.463.  SEVERABILITY.  Effective on the date the first utility transition bonds associated with hurricane reconstruction costs are issued under this subchapter, if any provision in this title or portion of this title is held to be invalid or is invalidated, superseded, replaced, repealed, or expires for any reason, that occurrence does not affect the validity or continuation of this subchapter, Subchapter G as it applies to an electric utility subject to this subchapter, or any part of those provisions, or any other provision of this title that is relevant to the issuance, administration, payment, retirement, or refunding of transition bonds or to any actions of the electric utility, its successors, an assignee, a collection agent, or a financing party, and those provisions shall remain in full force and effect.
Added by Acts 2006, 79th Leg., 3rd C.S., Ch. 11 (H.B. 163), Sec. 2, eff. May 31, 2006.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter K. Transition to Competition for Certain › Section 39.501. Applicability

Sec. 39.501.  APPLICABILITY.  (a)  This subchapter applies to an investor-owned electric utility:
(1)  that is operating solely outside of ERCOT in areas of this state that were included in the Southwest Power Pool on January 1, 2008;
(2)  that was not affiliated with the Southeastern Electric Reliability Council on January 1, 2008; and
(3)  to which Subchapter I does not apply.
(b)  The legislature finds that an electric utility subject to this subchapter is unable at this time to offer fair competition and reliable service to all retail customer classes in the area served by the utility.  As a result, the introduction of retail competition for such an electric utility is delayed until fair competition and reliable service are available to all retail customer classes as determined under this subchapter.
Added by Acts 2009, 81st Leg., R.S., Ch. 128 (S.B. 547), Sec. 1, eff. September 1, 2009.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter K. Transition to Competition for Certain › Section 39.502. Cost-of-Service Regulation

Sec. 39.502.  COST-OF-SERVICE REGULATION.  (a)  Until the date on which an electric utility subject to this subchapter is authorized by the commission under Section 39.503(f) to implement retail customer choice, the rates of the utility are subject to regulation under Chapter 36.
(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 and 39.905, do not apply to that utility.
Added by Acts 2009, 81st Leg., R.S., Ch. 128 (S.B. 547), Sec. 1, eff. September 1, 2009.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 610 (S.B. 936), Sec. 6, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 32, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter K. Transition to Competition for Certain › Section 39.5021. Metering

Sec. 39.5021. METERING.  (a)  Notwithstanding Section 39.502, an electric utility subject to this subchapter that elects to deploy advanced metering and meter information networks may recover reasonable and necessary costs incurred in deploying advanced metering and meter information networks.  An electric utility that elects to deploy advanced metering or meter information networks is subject to commission rules adopted under Sections 39.107(h) and (k).  The commission shall ensure that any deployment plan approved under this section and any related customer surcharge:
(1)  are not applicable to customer accounts that receive service at transmission voltage; and
(2)  are consistent with commission rules related to advanced metering systems regarding:
(A)  customer protections;
(B)  data security, privacy, and  ownership; and
(C)  options given consumers to continue to receive service through a non-advanced meter.
(b)  An electric utility subject to this subchapter that elects to deploy an advanced meter information network shall deploy the network as rapidly as practicable to allow customers to better manage energy use and control costs.
Added by Acts 2019, 86th Leg., R.S., Ch. 33 (H.B. 1595), Sec. 1, eff. May 14, 2019.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter K. Transition to Competition for Certain › Section 39.504. Hiring Assistance for Federal Proceedings

Sec. 39.504.  HIRING ASSISTANCE FOR FEDERAL PROCEEDINGS.  (a)  The commission may retain any consultant, accountant, auditor, engineer, or attorney the commission considers necessary to represent the commission in a proceeding before the Federal Energy Regulatory Commission, or before a court reviewing proceedings of that federal commission, related to:
(1)  the relationship of an electric utility subject to this subchapter to a power region, regional transmission organization, or independent system operator;
(2)  the approval of an agreement among the electric utility and the electric utility's affiliates concerning the coordination of the operations of the electric utility and the electric utility's affiliates; or
(3)  other matters related to the electric utility subject to this subchapter that may affect the ultimate rates paid by retail customers in this state.
(b)  Assistance for which a consultant, accountant, auditor, engineer, or attorney may be retained under Subsection (a) may include:
(1)  conducting a study;
(2)  conducting an investigation;
(3)  presenting evidence;
(4)  advising the commission; or
(5)  representing the commission.
(c)  The electric utility shall pay timely the reasonable costs of the services of a person retained under Subsection (a), as determined by the commission.  The total costs an electric utility is required to pay under this subsection may not exceed $1.5 million in a 12-month period.
(d)  The commission shall allow the electric utility to recover both the total costs the electric utility paid under Subsection (c) and the carrying charges for those costs through a rider established annually to recover the costs paid and carrying charges incurred during the preceding calendar year.  The rider may not be implemented before the rider is reviewed and approved by the commission.
(e)  The commission shall consult the attorney general before the commission retains a consultant, accountant, auditor, or engineer under Subsection (a).  The retention of an attorney under Subsection (a) is subject to the approval of the attorney general under Section 402.0212, Government Code.
(f)  The commission shall be precluded from engaging any individual who is required to register under Section 305.003, Government Code.
(g)  This section expires September 1, 2029.
Added by Acts 2015, 84th Leg., R.S., Ch. 849 (S.B. 932), Sec. 3, eff. September 1, 2015.
Amended by:
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 33, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter L. Transition to Competition and Other Provisions for Certain Areas Outside of Ercot › Section 39.551. Applicability

Sec. 39.551.  APPLICABILITY.  (a)  This subchapter applies only to an investor-owned electric utility:
(1)  that is operating solely outside of ERCOT in areas of this state that were included in the Western Electricity Coordinating Council on January 1, 2011;
(2)  that was not affiliated with ERCOT on January 1, 2011; and
(3)  to which Subchapters I, J, and K do not apply.
(b)  The legislature finds that an electric utility subject to this subchapter is unable at this time to offer fair competition and reliable service to all retail customer classes in the area served by the utility.  As a result, the introduction of retail competition for such an electric utility is delayed until fair competition and reliable service are available to all retail customer classes as determined under this subchapter.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1113 (S.B. 1910), Sec. 1, eff. June 17, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter L. Transition to Competition and Other Provisions for Certain Areas Outside of Ercot › Section 39.552. Cost-of-Service Regulation

Sec. 39.552.  COST-OF-SERVICE REGULATION.  (a)  Until the date on which an electric utility subject to this subchapter is authorized by the commission under Section 39.553(f) to implement retail customer choice, the rates of the utility are subject to regulation under Chapter 36.
(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 and 39.905, do not apply to that utility.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1113 (S.B. 1910), Sec. 1, eff. June 17, 2011.
Amended by:
Acts 2019, 86th Leg., R.S., Ch. 610 (S.B. 936), Sec. 7, eff. September 1, 2019.
Acts 2023, 88th Leg., R.S., Ch. 410 (H.B. 1500), Sec. 34, eff. September 1, 2023.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter L. Transition to Competition and Other Provisions for Certain Areas Outside of Ercot › Section 39.5521. Metering

Sec. 39.5521. METERING.  (a)  Notwithstanding Section 39.552, an electric utility subject to this subchapter that elects to deploy advanced metering and meter information networks may recover reasonable and necessary costs incurred in deploying advanced metering and meter information networks. An electric utility that elects to deploy advanced metering or meter information networks is subject to commission rules adopted under Sections 39.107(h) and (k).  The commission shall ensure that any deployment plan approved under this section and any related customer surcharge:
(1)  are not applicable to customer accounts that receive service at transmission voltage; and
(2)  are consistent with commission rules related to advanced metering systems regarding:
(A)  customer protections;
(B)  data security, privacy, and  ownership; and
(C)  options given consumers to continue to receive service through a non-advanced meter.
(b)  An electric utility subject to this subchapter that elects to deploy an advanced meter information network shall deploy the network as rapidly as practicable to allow customers to better manage energy use and control costs.
Added by Acts 2019, 86th Leg., R.S., Ch. 168 (H.B. 853), Sec. 1, eff. May 24, 2019.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter L. Transition to Competition and Other Provisions for Certain Areas Outside of Ercot › Section 39.555. Marketing of Energy Efficiency and Renewable Energy Programs

Sec. 39.555.  MARKETING OF ENERGY EFFICIENCY AND RENEWABLE ENERGY PROGRAMS.  An electric utility subject to this subchapter may market an energy efficiency or renewable energy program directly to a retail electric customer in its service territory and provide rebate or incentive funds directly to a customer to promote or facilitate the success of programs implemented under Section 39.905.
Added by Acts 2011, 82nd Leg., R.S., Ch. 1113 (S.B. 1910), Sec. 1, eff. June 17, 2011.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.601. Purpose

Sec. 39.601.  PURPOSE.  (a) The purpose of this subchapter is to address the Winter Storm Uri default balance, as defined by Section 39.602, in a manner that benefits the public interest by:
(1)  enabling the independent organization to finance the payment of the default balance with debt obligations; and
(2)  authorizing the commission to contract with the comptroller under Section 404.0241, Government Code, to finance the payment of the default balance with debt obligations.
(b)  Financing the default balance in the manner provided by this subchapter will:
(1)  allow wholesale market participants that are owed money to be paid in a more timely manner;
(2)  replenish financial revenue auction receipts temporarily used by the independent organization to reduce the Winter Storm Uri-related amounts short-paid to the wholesale market participants; and
(3)  allow the wholesale market to repay the default balance over time.
(c)  The legislature finds that the financing authorized by this subchapter serves the public purpose of preserving the integrity of the electricity market in the ERCOT power region.
(d)  The proceeds of debt obligations issued under this subchapter must be used solely for the purpose of financing default balances that otherwise would be or have been uplifted to the wholesale market.
(e)  The commission shall ensure that the structuring and pricing of debt obligations issued under this subchapter result in the lowest financing costs consistent with market conditions and the terms of the commission's order.  The present value calculation must use a discount rate equal to the proposed interest rate on the debt obligations.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.602. Definitions

Sec. 39.602.  DEFINITIONS.  In this subchapter:
(1)  "Default balance" means an amount of money of not more than $800 million that includes only:
(A)  amounts owed to the independent organization by competitive wholesale market participants from the period of emergency that otherwise would be or have been uplifted to other wholesale market participants;
(B)  financial revenue auction receipts used by the independent organization to temporarily reduce amounts short-paid to wholesale market participants related to the period of emergency; and
(C)  reasonable costs incurred by a state agency or the independent organization to implement a debt obligation order under Sections 39.603 and 39.604, including the cost of retiring or refunding existing debt.
(2)  "Default charges" means charges assessed to wholesale market participants to repay amounts financed under this subchapter to pay the default balance.
(3)  "Independent organization" means the independent organization certified under Section 39.151 for the ERCOT power region.
(4)  "Period of emergency" means the period beginning 12:01 a.m., February 12, 2021, and ending 11:59 p.m., February 20, 2021.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.605. Default Charges Nonbypassable

Sec. 39.605.  DEFAULT CHARGES NONBYPASSABLE.  An order issued under Section 39.603 or 39.604 must:
(1)  include terms ensuring that the imposition and collection of default charges authorized in the order shall be nonbypassable by wholesale market participants; and
(2)  authorize the independent organization to establish appropriate fees and other methods for pursuing amounts owed from entities exiting the wholesale market.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.606. True-Up Mechanism

Sec. 39.606.  TRUE-UP MECHANISM.  An order issued under Section 39.603 or 39.604 must include a mechanism requiring that default charges be reviewed and adjusted at least annually, not later than the 45th day after the anniversary date of the issuance of the order, to:
(1)  correct over-collections or under-collections over the preceding 12 months; and
(2)  ensure the expected recovery of amounts sufficient to timely provide all payments of debt service.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.607. Tax Exemption

Sec. 39.607.  TAX EXEMPTION.  The transfer and receipt of default charges are exempt from state and local sales and use, franchise, and gross receipts taxes.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.608. Property Rights

Sec. 39.608.  PROPERTY RIGHTS.  (a)  The rights and interests of the independent organization or its successor under a debt obligation order issued under this subchapter, including the right to impose, collect, and receive default charges, shall be only contract rights until they are first transferred to an assignee or pledged in connection with an investment agreement entered into under Section 404.0241, Government Code, or the issuance of debt obligations, at which time they will become default property, as described by Subsection (b).
(b)  Default property shall constitute a present property right for purposes of contracts concerning the sale or pledge of property, even though the imposition and collection of default charges depends on further acts of the independent organization or others that have not yet occurred.  A debt obligation order issued under this subchapter shall remain in effect and the property shall continue to exist for the same period as the pledge of the state described by Section 39.609.
(c)  All revenues and collections resulting from default charges shall constitute proceeds only of the default property arising from the debt obligation order.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter M. Winter Storm Uri Default Balance Financing › Section 39.609. Pledge of State

Sec. 39.609.  PLEDGE OF STATE.  Debt obligations issued pursuant to this subchapter, including any bonds, are not a debt or obligation of the state and are not a charge on its full faith and credit or taxing power.  The state pledges, however, for the benefit and protection of financing parties and the independent organization that it will not take or permit any action that would impair the value of default property, or reduce, alter, or impair the default charges to be imposed, collected, and remitted to financing parties, until the principal, interest and premium, and any other charges incurred and contracts to be performed in connection with the related debt obligations have been paid and performed in full.  Any party issuing a debt obligation under this subchapter is authorized to include this pledge in any documentation relating to the obligation.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.651. Purpose; Use of Proceeds

Sec. 39.651.  PURPOSE; USE OF PROCEEDS.  (a) The purpose of this subchapter is to address the Winter Storm Uri uplift balance by:
(1)  enabling the independent organization certified under Section 39.151 for the ERCOT power region to finance the uplift balance on behalf of wholesale market participants through debt obligations; and
(2)  authorizing the commission to contract with another state agency to finance the payment of the uplift balance with debt obligations or use any another financial mechanism consistent with this subchapter for that purpose.
(b)  Financing the uplift balance in the manner provided by this subchapter will allow wholesale market participants who were assessed extraordinary uplift charges due to consumption during the period of emergency to pay those charges over a longer period of time, alleviating liquidity issues and reducing the risk of additional defaults in the wholesale market.
(c)  The legislature finds that authorizing financing under this subchapter serves the public purpose of allowing the commission to stabilize the wholesale electricity market in the ERCOT power region.
(d)  The proceeds of debt obligations issued under this subchapter must be used solely for the purpose of financing reliability deployment price adder charges and ancillary service costs that exceeded the commission's system-wide offer cap and were uplifted to load-serving entities based on consumption during the period of emergency.  A load-serving entity that receives proceeds from the debt obligations may use the proceeds solely for the purposes of fulfilling payment obligations directly related to such costs and refunding such costs to retail customers who have paid or otherwise would be obligated to pay such costs.
(e)  The commission shall ensure that the structuring and pricing of the debt obligations results in the lowest uplift charges consistent with market conditions and the terms of the order issued under this subchapter.  The present value calculation must use a discount rate equal to the proposed interest rate on the debt obligations.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.652. Definitions

Sec. 39.652.  DEFINITIONS.  In this subchapter:
(1)  "Independent organization" means the independent organization certified under Section 39.151 for the ERCOT power region.
(2)  "Load-serving entity" means a municipally owned utility, an electric cooperative, or a retail electric provider.
(3)  "Period of emergency" means the period beginning 12:01 a.m., February 12, 2021, and ending 11:59 p.m., February 20, 2021.
(4)  "Uplift balance" means an amount of money of not more than $2.1 billion that was uplifted to load-serving entities on a load ratio share basis due to energy consumption during the period of emergency for reliability deployment price adder charges and ancillary services costs in excess of the commission's system-wide offer cap, excluding amounts securitized under Subchapter D, Chapter 41.  The term does not include amounts that were part of the prevailing settlement point price during the period of emergency.
(5)  "Uplift charges" means charges assessed to load-serving entities to repay amounts financed under this subchapter to pay the uplift balance and reasonable costs incurred by a state agency or the independent organization to implement a debt obligation order under Section 39.653, 39.654, or 39.655, including the cost of retiring or refunding existing debt.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.654. Commission-Authorized Financing

Sec. 39.654.  COMMISSION-AUTHORIZED FINANCING.  (a)  The commission may contract with another state agency with expertise in public financing to establish a debt financing mechanism to finance the payment of the uplift balance under an order that meets the requirements of Section 39.653.
(b)  The contracted state agency and any issuer must be a party to the commission's proceedings that address the issuance of an order along with the independent organization.
(c)  In addition to the other applicable requirements of this subtitle, an order issued under this section must:
(1)  require the sale, assignment, or other transfer to the contracted state agency of uplift charges created by the order and, following that sale, assignment, or transfer, require that uplift charges paid under any order be created, assessed, and collected as the property of the contracted state agency, subject to subsequent sale, assignment, or transfer by the contracted state agency as authorized under this subchapter;
(2)  authorize:
(A)  the issuance of debt obligations by the contracted state agency secured by a pledge of uplift charge revenue, and the application of the proceeds of those debt obligations, net of issuance costs, to the independent organization; or
(B)  the acquisition of uplift charge revenue from the independent organization by the contracted state agency, financed:
(i)  by a loan by an issuer to the contracted state agency of the proceeds of debt obligations, net of issuance costs; or
(ii)  by the acquisition by an issuer from the contracted state agency of the uplift charge revenue and in each case the pledge of the revenue to the repayment of the loan or debt obligations, as applicable; and
(3)  authorize the independent organization to serve as collection agent to collect the uplift charges and transfer the collected uplift charges to the contracted state agency or the issuer, as appropriate.
(d)  After issuance of the order, the contracted state agency shall arrange for the issuance of debt obligations, as specified by the order, by the contracted state agency or another issuer selected by the contracted state agency and approved by the commission.
(e)  Debt obligations issued pursuant to an order issued under this section are secured only by the uplift charge revenue and any other funds pledged under the bond documents.  No assets of the state or the independent organization are subject to claims by the holders of the debt obligations.  Following assignment of the uplift charge revenue, the independent organization does not have any beneficial interest or claim of right in the revenue.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.655. Other Financial Mechanism

Sec. 39.655.  OTHER FINANCIAL MECHANISM.  The commission may use a financial mechanism other than the mechanisms described by Sections 39.653 and 39.654 that meets the requirements of this subchapter to accomplish the purposes of this subchapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.656. Uplift Charges Nonbypassable

Sec. 39.656.  UPLIFT CHARGES NONBYPASSABLE.  An order issued under Section 39.653, 39.654, or 39.655 must:
(1)  include terms ensuring that the imposition and collection of uplift charges authorized in the order shall be nonbypassable, except for entities excluded under Section 39.653(d); and
(2)  authorize the independent organization to establish appropriate fees and other methods for pursuing amounts owed from entities exiting the wholesale market.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.657. True-Up

Sec. 39.657.  TRUE-UP.  An order shall include a mechanism requiring that uplift charges be reviewed and adjusted at least annually, not later than the 45th day after the anniversary date of the issuance of the debt obligations, to:
(1)  correct over-collections or under-collections over the preceding 12 months; and
(2)  ensure the expected recovery of amounts sufficient to timely provide all payments of debt service and other required amounts and charges in connection with the debt obligations.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.658. Tax Exemption

Sec. 39.658.  TAX EXEMPTION.  Transactions involving the transfer and ownership of uplift property and the receipt of uplift charges are exempt from state and local income, sales, franchise, gross receipts, and other taxes or similar charges.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.659. Severability

Sec. 39.659.  SEVERABILITY.  Effective on the date the first debt obligations are issued under this subchapter, if any provision in this title or portion of this title is held to be invalid or is invalidated, superseded, replaced, repealed, or expires for any reason, that occurrence does not affect the validity or continuation of this subchapter or any other provision of this title that is relevant to the issuance, administration, payment, retirement, or refunding of debt obligations or to any actions of the independent organization, its successors, an assignee, a collection agent, or a financing party, which shall remain in full force and effect.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.660. Customer Charges

Sec. 39.660.  CUSTOMER CHARGES.  All load-serving entities that receive offsets to specific uplift charges from the independent organization under this subchapter must adjust customer invoices to reflect the offsets for any charges that were or would otherwise be passed through to customers under the terms of service with the load-serving entity, including by providing a refund for any offset charges that were previously paid.  An electric cooperative, including an electric cooperative that elects to receive offsets, shall not otherwise become subject to rate regulation by the commission and receipt of offsets does not affect the applicability of Chapter 41 to an electric cooperative.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.661. Enforcement

Sec. 39.661.  ENFORCEMENT.  The commission may use any enforcement mechanism established by Chapter 15 or this chapter, including revocation of certification by the commission, against any entity that fails to remit excess receipts from the uplift balance financing under Section 39.653(e) or otherwise misappropriates or misuses amounts received from the uplift balance financing this subchapter.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.662. Property Rights

Sec. 39.662.  PROPERTY RIGHTS.  (a)  The rights and interests of the independent organization or its successor under a debt obligation order issued under this subchapter, including the right to impose, collect, and receive uplift charges authorized in a debt obligation order under this subchapter, shall be only contract rights until they are first transferred to an assignee or pledged in connection with the issuance of a financing agreement entered into under Section 39.654(a) or the issuance of debt obligations, at which time they will become uplift property, as described by Subsection (b).
(b)  Uplift property shall constitute a present property right for purposes of contracts concerning the sale or pledge of property, even though the imposition and collection of uplift charges depends on further acts of the independent organization or others that have not yet occurred.  A debt obligation order issued under this subchapter shall remain in effect and the property shall continue to exist for the same period as the pledge of the state described by Section 39.663.
(c)  All revenues and collections resulting from uplift charges shall constitute proceeds only of the uplift property arising from the debt obligation order.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.663. Pledge of State

Sec. 39.663.  PLEDGE OF STATE.  Debt obligations issued pursuant to this subchapter, including any bonds, are not a debt or obligation of the state and are not a charge on its full faith and credit or taxing power.  The state pledges, however, for the benefit and protection of financing parties and the independent organization that it will not take or permit any action that would impair the value of uplift property, or reduce, alter, or impair the uplift charges to be imposed, collected, and remitted to financing parties, until the principal, interest and premium, and any other charges incurred and contracts to be performed in connection with the related debt obligations have been paid and performed in full.  Any party issuing a debt obligation under this subchapter is authorized to include this pledge in any documentation relating to the obligation.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter N. Winter Storm Uri Uplift Financing › Section 39.664. Legal Actions Involving Pricing or Uplift Actions

Sec. 39.664.  LEGAL ACTIONS INVOLVING PRICING OR UPLIFT ACTIONS.  A load-serving entity that receives proceeds from the financing under this subchapter shall return an amount of the proceeds equal to any amount of money received by the entity due to litigation seeking judicial review of pricing or uplift actions taken by the commission or the independent organization in connection with the period of emergency.
Added by Acts 2021, 87th Leg., R.S., Ch. 908 (H.B. 4492), Sec. 5, eff. June 16, 2021.
2023 Texas Statutes › Utilities Code › Title 2 - Public Utility Regulatory Act › Subtitle B - Electric Utilities › Chapter 39 - Restructuring of Electric Utility Industry › Subchapter Z. Miscellaneous Provisions › Section 39.9016. Nuclear Safety Fee

Sec. 39.9016.  NUCLEAR SAFETY FEE.  An electric utility that operates a nuclear asset located in a county on the coast of the Gulf of Mexico shall pay a nuclear safety fee for the year 2000 and the year 2001 to each taxing unit in which the nuclear asset is located, other than a school district, in an amount equal to the difference between the ad valorem taxes imposed by the taxing unit in 1999 and the amount of ad valorem taxes imposed by the unit in the year for which the fee is due, except that the amount of the fee may not exceed one-half the taxes imposed on the asset by the unit in 1999.  The nuclear safety fee shall be considered a tax or fee under Section 39.258(5).
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.