Resolution 63-15 Timely Investment in Electric Infrastructure

Town of Anderson

Resolution # _63-15_

Supporting CSHB 1535 / CSSB 841 to Encourage Timely Investment in Electric Infrastructure

WHEREAS Texas communities benefit from a reliable infrastructure, including a robust and efficient electric grid, to support economic growth; and

WHEREAS all utilities, including investor-owned electric utilities located outside Electric Reliability Council of Texas (ERCOT), require investment to update and replace aging infrastructure and meet population and industrial growth; and

WHEREAS non-ERCOT utilities operate under an outdated regulatory model that produces “regulatory lag,” which is an extended time period between the date that infrastructure is placed in service and the date utilities are allowed to start recovering their investment; and

WHEREAS regulatory lag hinders the flow of capital into these strategic regions of the state and undermines the non-ERCOT utilities ability to invest in needed infrastructure; and

WHEREAS CHSB 1535 and CSSB 841 will reduce regulatory lag and encourage investment in needed electric infrastructure in the non- ERCOT areas; and

WHEREAS CSHB 1535 and CSSB 841 will not affect municipal original jurisdiction or reduce the Public Utility Commission (PUC) of Texas’ authority to review the prudency of utility investments; and

WHEREAS CSHB 1535 and CSSB 841 will not increase the cost of electric service, but will simply align the timing of investment with the PUC-approved recovery of that investment; and

WHEREAS Representative John Frullo, CSHB 1535’s author, and Senator Brandon Creighton, CSSB841’s author, have provided an open process to allow stakeholders to provide input on CSHB 1535 and/or CSSB 841; and


1. That the Town of Anderson, encourages the Texas Legislature to pass CSHB 1535 and/or CSSB 841 to reduce regulatory lag and encourage investment in the non-ERCOT areas of Texas.

2. That this resolution is effective upon its adoption.

PASS AND APPROVED this 9th day of April 2015.

____________________________ ____________________________
Gail M. Sowell, Mayor E. Tom Johanson, Secretary
Town of Anderson Town of Anderson

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P.O. Box 592
Anderson, TX 77830

Ph: (936) 873-3102