HB 139 — Maximum nonfuel rates certain electric utilities may cha

90R3437 CXP-D By: González of El Paso H.B. No. 139 relating to maximum nonfuel rates certain electric utilities may charge residential retail customers.

SECTION 1. Subchapter E, Chapter 36, Utilities Code, is amended by adding Section 36.218 to read as follows: Sec. 36.218. MAXIMUM NONFUEL RATES CHARGED BY CERTAIN NON-ERCOT UTILITIES TO RESIDENTIAL RETAIL CUSTOMERS. (a) This section applies only to an electric utility that operates solely outside of ERCOT. (b) The commission by rule shall adopt a process for setting during a base rate proceeding a maximum nonfuel rate that an electric utility may charge residential retail customers. The rate must be equal to the average of the nonfuel rates the utility charged that class of customers at times of summer weather-adjusted peak demand during the five-year period preceding the year in which the base rate proceeding occurs, adjusted for inflation. (c) Notwithstanding any other provision of this chapter, a regulatory authority may approve an adjustment of the maximum nonfuel rate in a proceeding other than a base rate proceeding only: (1) for inflation; or (2) if the regulatory authority determines that the rate is unreasonable. (d) An electric utility shall provide notice to each residential retail customer at least 30 days before the date the utility anticipates charging the customer a new maximum nonfuel rate set under Subsection (b). The notice must be provided using the customer's preferred method of communication with the electric utility.

SECTION 2. This Act takes effect September 1, 2027.