Texas Utilities Code 39.254 – Use of Revenues for Utilities With Stranded Costs
Terms Used In Texas Utilities Code 39.254
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Jurisdiction: (1) The legal authority of a court to hear and decide a case. Concurrent jurisdiction exists when two courts have simultaneous responsibility for the same case. (2) The geographic area over which the court has authority to decide cases.
- Year: means 12 consecutive months. See Texas Government Code 311.005
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 § 39.257(b) shall be applied to the net book value of generation assets.