TX HB5247

Allows electric utilities operating solely within ERCOT that were assigned transmission construction responsibilities under the Permian Basin reliability plan to elect an alternative capital recovery process when their annual capital expenditures exceed 300% of annual depreciation

Eligible utilities may file a single annual proceeding to adjust nonfuel rates system-wide for transmission and distribution invested capital, instead of using multiple separate rate adjustment mechanisms

Utilities electing this process may defer costs including depreciation and carrying expenses as a regulatory asset, with amortization typically not exceeding 18 months; any over-earnings above the allowed return on investment must be applied to reduce the regulatory asset balance

The Public Utility Commission must approve rate adjustments within 120 days of filing; if no final order is issued, utilities may implement temporary rates after 165 days, subject to refund with interest if final rates differ

The section expires December 31, 2035, and does not prevent the commission from reviewing whether investment costs were prudent, reasonable, and necessary in subsequent base rate proceedings, with potential refunds to customers for improperly recovered amounts