H.B. No. 5247 introduces a new section, Section 36.216, to the Utilities Code, establishing a single capital investment procedure specifically for certain electric utilities operating within the Electric Reliability Council of Texas (ERCOT). This section applies to electric utilities identified by the commission as responsible for constructing transmission as part of the reliability plan for the Permian Basin. It allows these utilities to file a single annual proceeding to adjust nonfuel rates if their capital expenditures exceed 300 percent of annual depreciation in a calendar year. The bill outlines the requirements for utilities to make this election, including filing notices and providing evidence of ongoing eligibility.

Additionally, the bill stipulates that utilities making this election may defer costs associated with transmission and distribution capital and must update cost allocations among customer classes. The commission is required to approve adjustments within 120 days of filing, and utilities can implement temporary rates if the commission does not issue a final order within the specified timeframe. The section also includes provisions for the treatment of over-earnings and the amortization of regulatory assets, while ensuring that the utilities' rates remain in effect until modified in future proceedings. This new section is set to expire on December 31, 2035.

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