Tex. Utils. Code Section 36.401
Securitization for Recovery of System Restoration Costs; Purpose

(a)

The purpose of this subchapter is to enable an electric utility to obtain timely recovery of system restoration costs and to use securitization financing to recover these costs, because that type of debt will lower the carrying costs associated with the recovery of these costs, relative to the costs that would be incurred using conventional financing methods. The proceeds of the transition bonds may be used only for the purposes of reducing the amount of recoverable system restoration costs, as determined by the commission in accordance with this subchapter, including the refinancing or retirement of utility debt or equity.

(b)

It is the intent of the legislature that:

(1)

securitization of system restoration costs will be accomplished using the same procedures, standards, and protections for securitization authorized under Subchapter G (Purpose), Chapter 39 (Restructuring of Electric Utility Industry), as in effect on the effective date of this section, except as provided by this subchapter; and

(2)

the commission will ensure that securitization of system restoration costs provides greater tangible and quantifiable benefits to ratepayers than would have been achieved without the issuance of transition bonds.
Added by Acts 2009, 81st Leg., R.S., Ch. 1 (S.B. 769), Sec. 1, eff. April 16, 2009.

Source: Section 36.401 — Securitization for Recovery of System Restoration Costs; Purpose, https://statutes.­capitol.­texas.­gov/Docs/UT/htm/UT.­36.­htm#36.­401 (accessed May 26, 2025).

36.001
Authorization to Establish and Regulate Rates 36.002
Compliance with Title 36.003
Just and Reasonable Rates 36.004
Equality of Rates and Services 36.005
Rates for Area Not in Municipality 36.006
Burden of Proof 36.007
Discounted Wholesale or Retail Rates 36.008
State Transmission System 36.009
Billing Demand for Certain Utility Customers 36.051
Establishing Overall Revenues 36.052
Establishing Reasonable Return 36.053
Components of Invested Capital 36.054
Construction Work in Progress 36.055
Separations and Allocations 36.056
Depreciation, Amortization, and Depletion 36.057
Net Income 36.058
Consideration of Payment to Affiliate 36.059
Treatment of Certain Tax Benefits 36.060
Consolidated Income Tax Returns 36.061
Allowance of Certain Expenses 36.062
Consideration of Certain Expenses 36.063
Consideration of Profit or Loss from Sale or Lease of Merchandise 36.064
Self-insurance 36.065
Pension and Other Postemployment Benefits 36.066
Costs Related to Reporting on Safety Processes and Inspections for Certain Utilities 36.067
Consideration of Compensation and Benefit Expenses 36.101
Definition 36.102
Statement of Intent to Change Rates 36.103
Notice of Intent to Change Rates 36.104
Early Effective Date of Rate Change 36.105
Determination of Propriety of Rate Change 36.106
Regional Hearing 36.107
Preference to Hearing 36.108
Rate Suspension 36.109
Temporary Rates 36.110
Bonded Rates 36.111
Establishment of Final Rates 36.112
Cost Recovery and Rate Adjustment Standards and Procedures for Certain Non-ercot Utilities 36.151
Unreasonable or Violative Existing Rates 36.152
Investigating Costs of Obtaining Service from Another Source 36.153
Rate-filing Package 36.154
Deadline 36.155
Interim Order Establishing Temporary Rates 36.156
Automatic Temporary Rates 36.157
Rate Review Schedule 36.201
Automatic Adjustment for Changes in Costs 36.202
Adjustment for Change in Tax Liability 36.203
Fuel and Purchased Power Cost Recovery 36.204
Cost Recovery and Incentives 36.205
Purchased Power Cost Recovery 36.206
Mark-ups 36.207
Use of Mark-ups 36.208
Payment to Qualifying Facility 36.209
Recovery by Certain Non-ercot Utilities of Certain Transmission Costs 36.210
Periodic Rate Adjustments 36.211
Relation Back of Rates for Certain Non-ercot Utilities 36.212
Rate Case Requirement for Certain Non-ercot Utilities 36.213
Adjustment for Cybersecurity Monitor Costs for Certain Utilities 36.214
Recovery of Generation Investment by Non-ercot Utilities 36.215
Recovery of Investment in Distributed Generation and Rates for Backup Electric Service for Certain Non-ercot Utilities 36.351
Discounted Rates for Certain Institutions of Higher Education 36.352
Special Rate Class 36.353
Payment in Lieu of Tax 36.354
Discounted Rates for Military Bases 36.401
Securitization for Recovery of System Restoration Costs 36.402
System Restoration Costs 36.403
Standards and Procedures Governing Securitization and Recovery of System Restoration Costs 36.404
Nonbypassable Charges 36.405
Determination of System Restoration Costs 36.406
Severability 36.451
Purpose and Applicability 36.452
Definitions 36.453
Creation of Corporation 36.454
Powers and Duties of Corporation 36.455
Commission Regulation of Corporation 36.456
Financing Order 36.457
Severability
Green check means up to date. Up to date

Verified:
May 26, 2025

§ 36.401. Securitization for Recovery of System Restoration Costs; Purpose's source at texas​.gov