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WHEREAS non-ERCOT utilities operate under an outdated regulatory model that produces “regulatory lag,” which is an extended time period between the date that infrastructure is placed in service and the date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
NOW, THEREFORE, BE IT RESOLVED BY THE TOWN OF ANDERSON:
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