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A BILL TO BE ENTITLED
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AN ACT
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relating to a landowner petition to partition and transfer a |
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geographic portion of a service area of an electric cooperative. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter B, Chapter 39, Utilities Code, is |
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amended by adding Section 39.056 to read as follows: |
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Sec. 39.056. LANDOWNER PETITION TO TRANSFER TERRITORY TO |
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COMPETITIVE RETAIL MARKET. (a) The owner of a parcel of land part |
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of which is in an area open to competition in ERCOT and part of which |
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is in the certificated service area of an electric cooperative |
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created under Chapter 161 may petition the commission to: |
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(1) partition the part of the land that is subject to |
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the electric cooperative's certificate of convenience and |
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necessity; |
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(2) transfer the land described by Subdivision (1) to |
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the certificated service area of a transmission and distribution |
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utility that serves the part of the land that is in the area open to |
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competition; and |
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(3) amend accordingly the certificate of convenience |
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and necessity of the: |
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(A) electric cooperative; and |
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(B) transmission and distribution utility. |
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(b) The petition must provide the commission with an |
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accurate description of the land as necessary to facilitate the |
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requested action. |
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(c) The commission shall hold a hearing on the petition. If |
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the commission determines the partition and transfer of territory |
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is in the best interest of ratepayers, the commission shall approve |
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the partition and conduct a proceeding to effectuate the transfer. |
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(d) Through the proceeding, the commission shall determine |
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the net book value of all of the cooperative's electric |
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distribution assets attributable to the service area that is |
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proposed to be transferred. |
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(e) Not later than the 90th day after the date the |
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commission determines the value of the cooperative's electric |
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distribution assets attributable to the transferred service area, |
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the transmission and distribution utility shall compensate the |
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cooperative for the assets as directed by the commission. |
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(f) The commission shall amend or issue certificates of |
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convenience and necessity to implement the transfer of the service |
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area. |
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(g) The commission shall adopt rules to implement this |
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section. |
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SECTION 2. This Act takes effect September 1, 2021. |