89R19230 CS-D     By: Hernandez, Hunter, Thompson, Darby, H.B. No. 1359       Moody     Substitute the following for H.B. No. 1359:     By:  Y. Davis of Dallas C.S.H.B. No. 1359       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, and   39.9035 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 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.