89R1100 CS-D     By: Hernandez H.B. No. 1359       A BILL TO BE ENTITLED   AN ACT   relating to a program to provide assistance for certain retail   electric customers; authorizing a fee.          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 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.  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, "fund" means the income-based assistance fund.           (b)  The income-based assistance fund is established as a   trust fund outside the state treasury to be held by the comptroller   and administered without further appropriation by the commission as   trustee on behalf of persons eligible to receive monetary   assistance from the fund or support from programs paid for using   money in the fund.          (c)  The fund is financed by a nonbypassable fee collected by   each retail electric provider and each municipally owned utility   and electric cooperative that has adopted customer choice.  The   commission shall set the amount of the fee, which may not exceed 65   cents per megawatt hour. The fee must be charged to retail electric   customers based on the number of kilowatt hours used by the   customer.  The commission shall set the fee biennially in a   reasonable amount necessary to produce sufficient revenue to cover   the estimated cost of administering this section during the period   for which the fee is in effect.  When setting the fee for an   applicable period, the commission must consider the balance of the   fund, if any, that is available for the purposes for which the fund   may be used during that period.  The commission shall publish the   fee set under this subsection and the period for which the fee will   be in effect in the Texas Register.  The proceeds of the fee shall be   remitted to the comptroller for deposit to the credit of the fund.          (d)  The fund consists of:                (1)  revenue from the fee established under Subsection   (c);                (2)  money appropriated, credited, transferred, or   deposited to the credit of the fund by the legislature;                (3)  gifts, grants, or donations made to the fund; and                (4)  interest or other earnings attributable to the   investment of money in the fund.          (e)  Money in the fund may be 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 discounts described by Subsection (g); and                      (B)  provide one-time bill payment assistance as   described by Subsection (m) 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.          (f)  The commission shall adopt rules regarding programs to   assist low-income electric customers in areas where customer choice   is available. The programs may not be targeted to areas served by   municipally owned utilities or electric cooperatives that have not   adopted customer choice.          (g)  Programs adopted under Subsection (f) must include a   retail electric service discount program for low-income electric   customers that the commission implements for the purpose of making   the reimbursements authorized under Subsection (j). The commission   by rule shall require electric cooperatives that have adopted   customer choice, municipally owned utilities that have adopted   customer choice, and retail electric providers to provide the   discount. The commission shall set the amount of the discount as a   fixed amount and may periodically revise the fixed amount. The   discount for electric cooperatives that have adopted customer   choice and municipally owned utilities that have adopted customer   choice must be in addition to any rate reduction that may result   from local programs for low-income electric customers of the   municipally owned utility or electric cooperative.          (h)  The commission by rule shall establish eligibility   criteria for the discount program required under Subsection (g).   The criteria must provide that a customer is eligible for a discount   if identified by the Health and Human Services Commission as   eligible as a low-income customer under Section 17.007.          (i)  The commission by rule shall prescribe methods of   enrolling customers eligible to receive a discount under Subsection   (g) that are compatible with the automatic identification process   established under Section 17.007. The rules must provide for   automatic enrollment as one enrollment option for customers that   have been identified as low-income customers under Section 17.007.          (j)  The commission shall provide reimbursement from the   fund for each electric cooperative, municipally owned utility, or   retail electric provider that provides a discount under Subsection   (g) for the amount of the discount provided to eligible customers.   The commission shall adopt rules providing for the reimbursement.          (k)  Money distributed from the fund to a municipally owned   utility or an electric cooperative shall be proportional to the   nonbypassable fee paid by the municipally owned utility or electric   cooperative, subject to the reimbursement provided by Subsection   (j). On request by a municipally owned utility or an electric   cooperative, the commission shall reduce the nonbypassable fee   imposed on retail electric customers served by the municipally   owned utility or electric cooperative by an amount equal to the   amount provided by the municipally owned utility or electric   cooperative or its ratepayers for local low-income programs.          (l)  A retail electric provider may not charge the customer a   fee for receiving a discount.          (m)  Programs adopted under Subsection (f) must include a   bill payment assistance program as described by Subsection   (e)(1)(B). 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, 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.          (n)  The commission shall annually review and approve fund   accounts, projected revenue requirements, and proposed   nonbypassable fees.          SECTION 4.  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 5.  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 6.  This Act takes effect September 1, 2025.