The bill amends the Utilities Code to establish a financing mechanism that allows electric utilities to recover costs associated with weather-related events or other natural disasters through the issuance of system restoration bonds. Specifically, it modifies Section 36.451 by removing the requirement that the electric utility operates solely outside of ERCOT and introduces a new provision allowing utilities to apply for securitization and bond issuance for system restoration costs of $50 million or more in any calendar year.

Additionally, the bill adds new subsections to Section 36.456, which outline the process for electric utilities to file applications for determining eligible restoration costs and obtaining financing orders. The commission is required to issue a determination and financing order within 150 days of the application, and it establishes that estimated costs will be subject to true-up and reconciliation once actual costs are known. The bill aims to provide a timely and efficient method for utilities to recover significant restoration costs while ensuring regulatory oversight.

Statutes affected:
Introduced: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)
House Committee Report: Utilities Code 36.451, Utilities Code 36.456 (Utilities Code 36)