HB2869 - Relating to a financing mechanism allowing electric utilities to obtain recovery of costs associated with a weather-related event or other natural disaster; granting authority to issue bonds.

  89R12142 SCR-F     By: Metcalf H.B. No. 2869       A BILL TO BE ENTITLED   AN ACT   relating to a financing mechanism allowing electric utilities to   obtain recovery of costs associated with a weather-related event or   other natural disaster; granting authority to issue bonds.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Section 36.451, Utilities Code, is amended by   amending Subsection (b) and adding Subsection (i) to read as   follows:          (b)  The purpose of this subchapter is to make available a   lower-cost, supplemental financing mechanism to allow an electric   utility [ operating solely outside of ERCOT ] to obtain timely   recovery of system restoration costs under Subchapter I through   securitization and the issuance of transition bonds or system   restoration bonds by an issuer other than the electric utility or an   affiliated special purpose entity. Financing of system restoration   costs under this subchapter is a valid and essential public   purpose.           (i)     Notwithstanding Section 36.403(j), an electric utility   may apply for securitization and the issuance of system restoration   bonds under this subchapter for estimated and actual system   restoration costs of $50 million or more in any calendar year.          SECTION 2.  Section 36.456, Utilities Code, is amended by   adding Subsections (b-1), (b-2), and (b-3) to read as follows:           (b-1)     Notwithstanding Sections 36.405(c) and (d), an   electric utility may file an application with the commission under   this subchapter for:                 (1)     a determination of the amount of estimated and   actual system restoration costs eligible for recovery and   securitization; and                 (2)     a financing order that authorizes the   securitization of estimated and actual system restoration costs,   the issuance of system restoration bonds, and the creation of   system restoration charges for the recovery of qualified costs.           (b-2)     For an application filed under Subsection (b-1), the   commission shall issue an order that determines the amount of   estimated and actual system restoration costs eligible for recovery   and securitization and a financing order that authorizes the   securitization of estimated and actual system restoration costs,   the issuance of system restoration bonds, and the creation of   system restoration charges for the recovery of qualified costs not   later than the 150th day after the date the application is filed.           (b-3)     For an application filed under Subsection (b-1), the   estimated system restoration costs shall be subject to true-up and   reconciliation and system restoration charges shall be adjusted   after the actual system restoration costs are known.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2025.