Bill To Allow Non-ERCOT Riders For Quicker Investment Recovery Among Utilities Passes Legislature

May 8, 2019


A bill fast-tracking the recovery of some non-ERCOT electric generation investment has passed the Texas Legislature.

A committee substitute (amended) version of Rep. Dade Phelan‘s HB 1397 passed the Texas Senate on Wednesday, aimed at authorizing a utility outside of ERCOT to apply to the PUC for a rider to recover the utility’s “reasonable and necessary power generation investment and costs associated with that investment.”

The rider would allow up to 18 months for recovery of investments totaling more than $200 million

It’s intended to spur more investment in electricity infrastructure by allowing a quicker recovery on investments, according to Senate sponsor Robert Nichols, giving the PUC the ability to allow such riders but not requiring such riders.

“There have been some questions on why we took out the adjustment for low-growth revenues,” Sen. Nichols explained to the Senate upon passage of the bill, “which was in the engrossed version, that change was requested by the customers in the areas served and was meant to give the Public Utility Commission flexibility to make whatever adjustments they think appropriate.”