HB 4302 — Relating to the recovery of vegetation management costs by electric utilities.

Summary

Relating to the recovery of vegetation management costs by electric utilities.

Bill Text

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 1 section(s) of the Texas statutes: Section 36.2031, Utilities Code.

• Section 36.2031, Utilities Code

  Sec. 36.2031. VEGETATION MANAGEMENT COST RECOVERY; ADJUSTMENT OF VEGETATION MANAGEMENT FACTOR. (a) Section 36.201 does not prohibit the commission from reviewing and providing for adjustments of an electric utility's vegetation management factor. (b) The commission by rule shall implement procedures that provide for the timely adjustment of an electric utility's vegetation management factor. The rules must require that the findings required by Section 36.058 regarding vegetation management transactions with affiliated interests be made in a vegetation management reconciliation proceeding or in a rate case filed under Subchapter C or D. The rules must ensure that: (1) the utility collects as contemporaneously as reasonably possible the vegetation management costs that the utility incurs and that the commission determines are eligible; (2) the total of the utility's eligible vegetation management costs, including any under-collected or over-collected amounts to be recovered through an interim adjustment, is allocated among customer classes based on actual historical calendar month usage; (3) any material balance of amounts under-collected or over-collected for eligible vegetation management costs is collected from or refunded to customers through an interim adjustment: (A) not later than the 90th day after the date the balance is accrued; or (B) if the adjustment would result in a total bill increase of 10 percent or more compared to the total bill in the month before implementation, not later than a date ordered by the commission which must be after the 90th day after the date the balance is accrued; and (4) an affected party will receive notice and have the opportunity to request a hearing before the commission. (c) Notwithstanding Subsection (b)(3), on a finding that an electric utility has an under-collected balance that is the result of extraordinary vegetation management costs that are unlikely to continue, the commission may approve an interim vegetation management adjustment that would defer recovery to take place over a period longer than 90 days. (d) The commission is not required to hold a hearing on the adjustment of an electric utility's vegetation management factor under this section. If the commission holds a hearing, the commission may consider at the hearing any evidence that is appropriate and in the public interest. (e) A customer of the electric utility, a municipality with original jurisdiction over the utility, or the office may protest a vegetation management factor or interim adjustment proposed under this section. The prudence of costs may not be considered in a vegetation management factor or interim adjustment proceeding and may only be considered in a vegetation management reconciliation proceeding under Subsection (h) or another appropriate proceeding. (f) The sole issue that may be considered on a protest of a vegetation management factor under Subsection (e) is whether the factor reasonably reflects costs the electric utility will incur so that the utility will not substantially under-collect or over-collect the utility's reasonably stated vegetation management costs on an ongoing basis. The commission may adjust the utility's vegetation management factor based on its determination on that issue. (g) The commission shall hold a hearing on a protest of an interim adjustment under Subsection (e) if the adjustment would result in a total bill increase of 10 percent or more as described by Subsection (b)(3) or if the adjustment results from extraordinary vegetation management costs as described by Subsection (c). In response to a protest of an interim adjustment, if the commission finds that the electric utility is in a state of material under-collection or over-collection of the utility's reasonably stated eligible vegetation management costs and is projected to remain in that state on an ongoing basis, the commission shall order the utility to establish or modify an interim adjustment to address the

  added

Action History

1. April 14, 2025

   Left pending in committee

2. April 14, 2025

   Testimony taken/registration(s) recorded in committee

3. April 14, 2025

   Committee substitute considered in committee

4. April 14, 2025

   Considered in public hearing

5. April 14, 2025

   Scheduled for public hearing on . . .

6. April 01, 2025

   Referred to State Affairs

7. April 01, 2025

   Read first time

8. March 11, 2025

   Filed

Sponsors

• Will Metcalf · Primary

Subjects