House Bill No. 3293 introduces a new section, 36.3511, to the Utilities Code, which mandates discounted electric service rates for public school districts and other political subdivisions located in counties on the international border with a municipality of 500,000 or more residents. The bill stipulates that electric utilities and municipally owned utilities must provide these entities with the same discounts offered to institutions of higher education under existing law. However, utilities are exempt from this requirement if the discount would reduce their total annual revenues by more than one percent.

Additionally, the bill specifies that electric utilities cannot recover the costs associated with serving these discounted entities from residential or other customer classes. Utilities are required to file tariffs with the commission to reflect the mandated discounts, and the initial tariff filing will not be considered a rate change. The provisions of this bill will apply only to contracts entered into after its effective date of September 1, 2025, while existing contracts will remain governed by the previous law.

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