Sec. 39.254. USE OF REVENUES FOR UTILITIES WITH STRANDED COSTS. This subchapter provides a number of tools to an electric utility to mitigate stranded costs. Each electric utility that was reported by the commission to have positive "excess costs over market" (ECOM), denoted as the "base case" for the amount of stranded costs before full retail competition in 2002 with respect to its Texas jurisdiction, in the April 1998 Report to the Texas Senate Interim Committee on Electric Utility Restructuring entitled "Potentially Strandable Investment (ECOM) Report: 1998 Update," must use these tools to reduce the net book value of, otherwise referred to as "accelerate" the cost recovery of, its stranded costs each year. Any positive difference under the report required by Section 39.257(b) shall be applied to the net book value of generation assets.
Added by Acts 1999, 76th Leg., ch. 405, Sec. 39, eff. Sept. 1, 1999.
Structure Texas Statutes
Title 2 - Public Utility Regulatory Act
Subtitle B - Electric Utilities
Chapter 39 - Restructuring of Electric Utility Industry
Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge
Section 39.252. Right to Recover Stranded Costs
Section 39.253. Allocation of Stranded Costs
Section 39.254. Use of Revenues for Utilities With Stranded Costs
Section 39.255. Use of Revenues for Utilities With No Stranded Costs
Section 39.256. Option to Redirect Depreciation
Section 39.258. Annual Report: Determination of Annual Costs
Section 39.259. Annual Report: Determination of Invested Capital
Section 39.260. Use of Generally Accepted Accounting Principles
Section 39.261. Review of Annual Report
Section 39.262. True-Up Proceeding
Section 39.263. Stranded Cost Recovery of Environmental Cleanup Costs
Section 39.264. Emissions Reductions of "Grandfathered Facilities"