The bill amends the Utilities Code to establish new provisions regarding interim rates charged by electric utilities during a rate suspension period, specifically for those operating solely within the Electric Reliability Council of Texas (ERCOT). It introduces Section 36.1091, which mandates that if a regulatory authority orders a rate suspension, the utility must implement an interim rate within 90 days of filing a statement of intent. This interim rate must be calculated based on the utility's proposed costs and established methodologies from previous rate proceedings. Additionally, the bill requires utilities to notify retail electric providers at least 45 days before the interim rate takes effect and stipulates that any excess funds collected under interim rates must be refunded with interest.

The bill also modifies existing sections of the Utilities Code, including Section 36.062, which now specifies that certain expenditures, such as those for legislative advocacy and accident costs, cannot be considered for ratemaking purposes. Furthermore, it clarifies that Sections 36.109 and 36.110 do not apply to electric utilities operating solely within ERCOT. The changes in law will only apply to rate proceedings initiated after the effective date of the Act, ensuring that any ongoing proceedings are governed by the previous law. The Act will take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if such a vote is not achieved.

Statutes affected:
Introduced: Utilities Code 36.062, Utilities Code 36.211, Utilities Code 36.109 (Utilities Code 36)
House Committee Report: Utilities Code 36.062, Utilities Code 36.109, Utilities Code 36.110, Utilities Code 36.211 (Utilities Code 36)
Engrossed: Utilities Code 36.062, Utilities Code 36.109, Utilities Code 36.110, Utilities Code 36.211 (Utilities Code 36)