HB 116 — Rates for electric service provided to public school dis

90R369 CXP-F By: González of El Paso H.B. No. 116 relating to rates for electric service provided to public school districts and other local governmental entities in certain counties.

SECTION 1. Subchapter H, Chapter 36, Utilities Code, is amended by adding Section 36.3511 to read as follows: Sec. 36.3511. DISCOUNTED RATES FOR PUBLIC SCHOOL DISTRICTS AND OTHER POLITICAL SUBDIVISIONS IN CERTAIN COUNTIES. (a) This section applies only to a facility receiving electric service in a county that is located on the international border and contains a municipality with a population of 500,000 or more. (b) Notwithstanding any other provision of this title, each electric utility and municipally owned utility shall provide to a facility of a public school district or another political subdivision that is authorized to impose an ad valorem tax the same discount for charges for electric service as the discount required to be provided to a facility of an institution of higher education under Section 36.351. (c) An electric or municipally owned utility is exempt from this section if the discount results in a reduction equal to more than one percent of the utility's total annual revenues. (d) An electric utility may not recover from residential customers or any other customer class the assigned and allocated costs of serving a public school district or other political subdivision that receives a discount under this section. (e) Each electric utility shall file tariffs with the commission reflecting the discount required under this section. The initial tariff filing is not a rate change for purposes of Subchapter C.

SECTION 2. (a) Except as provided by Subsection (b) of this section, the change in law made by this Act applies only to a charge for electric service that accrues on or after the effective date of this Act. A charge for electric service that accrues before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose. (b) The changes in law made by this Act do not apply to a charge for electric service incurred under a contract entered into before the effective date of this Act. A charge for electric service incurred under a contract entered into before the effective date of this Act is governed by the law as it existed immediately before the effective date of this Act, and that law is continued in effect for that purpose.

SECTION 3. This Act takes effect September 1, 2027.