88R14146 CXP-F     By: González of El Paso H.B. No. 4735       A BILL TO BE ENTITLED   AN ACT   relating to discounted rates for electric service provided to   certain political subdivisions.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter H, Chapter 36, Utilities Code, is   amended by adding Section 36.3511 to read as follows:          Sec. 36.3511.  DISCOUNTED RATES FOR PUBLIC SCHOOL DISTRICTS   AND OTHER POLITICAL SUBDIVISIONS IN CERTAIN COUNTIES. (a)  This   section applies only to a facility receiving electric service in a   county that is located on the international border and contains a   municipality with a population of 500,000 or more.          (b)  Notwithstanding any other provision of this title, each   electric utility and municipally owned utility shall discount   charges for electric service provided to a facility of a public   school district or other political subdivision that:                (1)  is authorized to impose an ad valorem tax; or                (2)  provides public housing.          (c)  The discount is a 20 percent reduction of the utility's   base rates that would otherwise be paid under the applicable   tariffed rate.          (d)  An electric or municipally owned utility is exempt from   this section if the 20 percent discount results in a reduction equal   to more than one percent of the utility's total annual revenues.          (e)  An electric utility may not recover from residential   customers or any other customer class the assigned and allocated   costs of serving a public school district or other political   subdivision that receives a discount under this section.          (f)  Each electric utility shall file tariffs with the   commission reflecting the discount required under this section.   The initial tariff filing is not a rate change for purposes of   Subchapter C.          SECTION 2.  The changes in law made by this Act apply only to   a contract entered into on or after the effective date of this Act.   A contract entered into before the effective date of this Act is   governed by the law as it existed immediately before the effective   date of this Act, and that law is continued in effect for that   purpose.          SECTION 3.  This Act takes effect September 1, 2023.