SB 1438

relating to the procedure for a periodic rate adjustment by an
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Sections 36.210(a) and (i), Utilities Code, are
(a)  The commission, on the petition of an electric utility,
may approve a tariff or rate schedule in which a nonfuel rate may be
periodically adjusted upward or downward, based on changes in the
parts of the utility's invested capital, as described by Section
36.053, that are categorized or functionalized as distribution
plant, distribution-related intangible plant, and
distribution-related communication equipment and networks in
accordance with commission rules adopted after consideration of the
uniform system of accounts prescribed by the Federal Energy
Regulatory Commission.  A periodic rate adjustment must:
(1)  be approved or denied in accordance with a
(A)  allows for participation by the office and
(B)  extends for 90 days, except as provided by
(2)  take into account changes in the number of an
electric utility's customers and the effects, on a
weather-normalized basis, that energy consumption and energy
demand have on the amount of revenue recovered through the electric
(3)  be consistent with the manner in which costs for
invested capital described by this subsection were allocated to
each rate class, as approved by the commission, in an electric
utility's most recent base rate statement of intent proceeding with
changes to residential and commercial class rates reflected in
volumetric charges to the extent that residential and commercial
class rates are collected in that manner based on the electric
utility's most recent base rate statement of intent proceeding;
(4)  not diminish the ability of the commission or a
regulatory authority, on its own motion or on complaint by an
affected person as provided by Subchapter D, after reasonable
notice and hearing, to change the existing rates of an electric
utility for a service after finding that the rates are unreasonable
(5)  be applied by an electric utility on a system-wide
(6)  be supported by the sworn statement of an
appropriate employee of the electric utility that affirms that:
(A)  the filing is in compliance with the
provisions of the tariff or rate schedule; and
(B)  the filing is true and correct to the best of
the employee's knowledge, information, and belief.
(i)  The commission shall enter a final order on a request
for a periodic rate adjustment under this section not later than the
90th [60th] day after the date the request is filed.  The commission
may extend the deadline for not more than 15 days for good cause.
SECTION 2.  The changes in law made by this Act apply only to
a proceeding before the Public Utility Commission of Texas or other
regulatory authority described by Section 11.003, Utilities Code,
that commences on or after the effective date of this Act.  A
proceeding before the Public Utility Commission of Texas or other
regulatory authority described by Section 11.003, Utilities Code,
that commenced before the effective date of this Act is governed by
the law in effect on the date the proceeding commenced, and that law
is continued in effect for that purpose.
SECTION 3.  This Act takes effect September 1, 2025.