| |
| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to regulation of ownership and control of installed |
|
|
electric generation capacity. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Sections 39.152(a) and (d), Utilities Code, are |
|
|
amended to read as follows: |
|
|
(a) The commission shall certify a power region if: |
|
|
(1) a sufficient number of interconnected utilities in |
|
|
the power region fall under the operational control of an |
|
|
independent organization as described by Section 39.151; |
|
|
(2) the power region has a generally applicable tariff |
|
|
that guarantees open and nondiscriminatory access for all users to |
|
|
transmission and distribution facilities in the power region as |
|
|
provided by Section 39.203; and |
|
|
(3) no person owns and controls more than 25 [20] |
|
|
percent of the installed generation capacity located in or capable |
|
|
of delivering electricity to a power region, as determined |
|
|
according to Section 39.154. |
|
|
(d) For a power region outside of ERCOT, a power generation |
|
|
company that is affiliated with an electric utility may elect to |
|
|
demonstrate that it meets the requirements of Subsection (a)(3) by |
|
|
showing that it does not own and control more than 25 [20] percent |
|
|
of the installed capacity in a geographic market that includes the |
|
|
power region, using the guidelines, standards, and methods adopted |
|
|
by the Federal Energy Regulatory Commission. |
|
|
SECTION 2. Section 39.154(a), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(a) A [Beginning on the date of introduction of customer |
|
|
choice, a] power generation company may not own and control more |
|
|
than 25 [20] percent of the installed generation capacity located |
|
|
in, or capable of delivering electricity to, a power region. |
|
|
SECTION 3. Section 39.156(f), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(f) The commission shall approve, modify, or reject a plan |
|
|
within 180 days after the date the plan is filed [of a filing under |
|
|
Subsection (b)]. The commission may not modify a plan to require |
|
|
divestiture by the electric utility or the power generation |
|
|
company. |
|
|
SECTION 4. Section 39.407(a), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(a) If an electric utility chooses on or after January 1, |
|
|
2007, to participate in customer choice, the commission may not |
|
|
authorize customer choice until the applicable power region has |
|
|
been certified as a qualifying power region under Section |
|
|
39.152(a). Except as otherwise provided by this subsection, the |
|
|
commission shall certify that the requirements of Section |
|
|
39.152(a)(3) are met for electric utilities subject to this |
|
|
subchapter only upon a finding that the total capacity owned and |
|
|
controlled by each such electric utility and its affiliates does |
|
|
not exceed 25 [20] percent of the total installed generation |
|
|
capacity within the constrained geographic region served by each |
|
|
such electric utility plus the total available transmission |
|
|
capacity capable of delivering firm power and energy to that |
|
|
constrained geographic region. Not later than May 1, 2002, each |
|
|
electric utility subject to this subchapter shall submit to the |
|
|
electric utility restructuring legislative oversight committee an |
|
|
analysis of the needed transmission facilities necessary to make |
|
|
the electric utility's service area transmission capability |
|
|
comparable to areas within the ERCOT power region. On or after |
|
|
September 1, 2003, each electric utility subject to this subchapter |
|
|
shall file the utility's plans to develop the utility's |
|
|
transmission interconnections with the utility's power region or |
|
|
other adjacent power regions. The commission shall review the plan |
|
|
and not later than the 180th day after the date the plan is filed, |
|
|
determine the additional transmission facilities necessary to |
|
|
provide access to power and energy that is comparable to the access |
|
|
provided in areas within the ERCOT power region; provided, however, |
|
|
that if a hearing is requested by any party to the proceeding, the |
|
|
180-day deadline will be extended one day for each day of hearings. |
|
|
The commission shall, as a part of the commission's approval of the |
|
|
plan, approve a rate rider mechanism for the recovery of the |
|
|
incremental costs of those facilities after the facilities are |
|
|
completed and in-service. A finding of need under this subsection |
|
|
shall meet the requirements of Sections 37.056(c)(1), (2), and |
|
|
(4)(E). The commission may certify that the requirements of Section |
|
|
39.152(a)(3) are met for electric utilities subject to this |
|
|
subchapter if the commission finds that: |
|
|
(1) each such utility has sufficient transmission |
|
|
facilities to provide customers access to power and energy from |
|
|
capacity controlled by suppliers not affiliated with the incumbent |
|
|
utility that is comparable to the access to power and energy from |
|
|
capacity controlled by suppliers not affiliated with the incumbent |
|
|
utilities in areas of the ERCOT power region; and |
|
|
(2) the total capacity owned and controlled by each |
|
|
such electric utility and its affiliates does not exceed 25 [20] |
|
|
percent of the total installed generation capacity within the power |
|
|
region. |
|
|
SECTION 5. Section 39.453(b), Utilities Code, is amended to |
|
|
read as follows: |
|
|
(b) The commission shall certify that the requirement of |
|
|
Section 39.152(a)(3) is met for an electric utility subject to this |
|
|
subchapter only if the commission finds that the total capacity |
|
|
owned and controlled by the electric utility and the utility's |
|
|
affiliates does not exceed 25 [20] percent of the total installed |
|
|
generation capacity within the power region of that utility. |
|
|
SECTION 6. Section 39.156(b), Utilities Code, is repealed. |
|
|
SECTION 7. This Act takes effect September 1, 2023. |