Texas Utilities Code
§ 36.216 — RECOVERY OF ANNUAL CAPACITY-RELATED COSTS
UT § 36.216Title 2. PUBLIC UTILITY REGULATORY ACT · Part B. ELECTRIC UTILITIES · Ch. 36. RATES · Art. E. COST RECOVERY AND RATE ADJUSTMENT
Statute text
View on source(a)This section applies only to an electric utility that operates solely outside of ERCOT in areas of this state included in the Southeastern Electric Reliability Council.
(b)It is the intent of the legislature that certain changes to the level of an electric utility's capacity-related costs and capacity-related revenues due to wholesale rate decisions and determinations by a federal agency or a regional transmission organization subject to federal jurisdiction should be timely reflected in the utility's rates.
(c)On application by an electric utility that has not exceeded the utility's authorized return on equity as shown in the utility's most recent earnings monitoring report at the time of the application, the commission shall establish a capacity cost recovery rider that must be annually updated and that allows:
(1)recovery of the utility's costs that are eligible as provided by Subsection (d); and
(2)return to ratepayers of the utility's revenues that are eligible as provided by Subsection (d).
(d)In this section, eligible costs and revenues are capacity-related costs and revenues associated with the electric utility's participation in a multi-state capacity auction operated by a regional transmission organization or independent system organization authorized by the Federal Energy Regulatory Commission, to the extent the costs and revenues are not already being recovered through the utility's base rates.
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Legislative history
Added by Acts 2025, 89th Leg., R.S., Ch. 1010 (S.B. 1856), Sec. 1, eff. June 20, 2025.