Texas HB2868 amends the Utilities Code to affect rate setting for electric utilities operating within ERCOT.

HB2868 amends the Texas Utilities Code to affect how electric utilities' rates are set. Specifically, it requires the regulatory authority to presume the return on a utility's invested capital is reasonable if calculated using the utility's actual proportion of long-term debt and equity capitalization. If the regulatory authority finds the capitalization ratio unreasonable, it must use the national average for electric utility operating companies.

Texas HB2868 amends the Utilities Code to affect rate setting for electric utilities operating within ERCOT.

HB2868 amends the Texas Utilities Code to affect how electric utilities' rates are set. Specifically, it requires the regulatory authority to presume the return on a utility's invested capital is reasonable if calculated using the utility's actual proportion of long-term debt and equity capitalization. If the regulatory authority finds the capitalization ratio unreasonable, it must use the national average for electric utility operating companies.