HB 3293

relating to rates for electric service provided to public school
districts and other local governmental entities in certain
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Subchapter H, Chapter 36, Utilities Code, is
amended by adding Section 36.3511 to read as follows:
Sec. 36.3511.  DISCOUNTED RATES FOR PUBLIC SCHOOL DISTRICTS
AND OTHER POLITICAL SUBDIVISIONS IN CERTAIN COUNTIES.  (a)  This
section applies only to a facility receiving electric service in a
county that is located on the international border and contains a
municipality with a population of 500,000 or more.
(b)  Notwithstanding any other provision of this title, each
electric utility and municipally owned utility shall provide to a
facility of a public school district or another political
subdivision that is authorized to impose an ad valorem tax the same
discount for charges for electric service as the discount required
to be provided to a facility of an institution of higher education
(c)  An electric or municipally owned utility is exempt from
this section if the discount results in a reduction equal to more
than one percent of the utility's total annual revenues.
(d)  An electric utility may not recover from residential
customers or any other customer class the assigned and allocated
costs of serving a public school district or other political
subdivision that receives a discount under this section.
(e)  Each electric utility shall file tariffs with the
commission reflecting the discount required under this section.
The initial tariff filing is not a rate change for purposes of
SECTION 2.  The changes in law made by this Act apply only to
a contract entered into on or after the effective date of this Act.
A contract entered into before the effective date of this Act is
governed by the law as it existed immediately before the effective
date of this Act, and that law is continued in effect for that
SECTION 3.  This Act takes effect September 1, 2025.