Bill > SB1856

This bill establishes a new mechanism for electric utilities operating outside of the Electric Reliability Council of Texas (ERCOT) in the Southeastern Electric Reliability Council region to recover capacity-related costs through a specialized rider on customer bills. The bill allows these utilities to apply to the Public Utility Commission to create an annual capacity cost recovery rider that enables them to pass through costs and revenues associated with multi-state capacity auctions regulated by federal agencies, provided the utility has not exceeded its authorized return on equity. The rider must be annually updated and will include the utility's projected costs and revenues for the upcoming year, along with a true-up amount that reconciles any differences between actual and previously collected costs. The bill requires careful review to ensure only reasonable and prudent costs are recovered, and mandates that these specific costs be removed from base rates. The rider charges will be calculated using existing production demand allocation factors and projected billing determinants, with provisions for load growth adjustments. The Public Utility Commission must process these applications within 60 days, and the entire provision is set to expire on September 1, 2035, providing a temporary mechanism for these specific electric utilities to manage capacity-related financial adjustments.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1856