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A BILL TO BE ENTITLED
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AN ACT
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relating to water control and improvement district customers of |
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certain electric cooperatives. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. It is the intent of the legislature that this Act |
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ensure cost-effective and reliable siting of critical water |
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infrastructure operated by a water control and improvement |
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district. |
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SECTION 2. Subchapter B, Chapter 37, Utilities Code, is |
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amended by adding Section 37.062 to read as follows: |
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Sec. 37.062. SERVICE AREA EXCEPTION REQUESTED BY CERTAIN |
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WATER CONTROL AND IMPROVEMENT DISTRICTS. (a) In this section: |
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(1) "Consenting entity" means an electric utility that |
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consents to providing a district with retail electric service; |
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(2) "District" means a water control and improvement |
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district; |
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(3) "District facility" means a power-consuming |
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facility owned by a district that takes retail electric service at |
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transmission voltage; |
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(4) "ERCOT" has the meaning assigned by Section |
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31.002; |
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(5) "Requesting district" means a water control and |
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improvement district that has requested to receive retail electric |
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service provided at transmission voltage from a consenting entity |
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other than the electric cooperative certificated to provide the |
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district with such service. |
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(b) This section applies only to a water control and |
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improvement district that: |
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(1) receives retail electric service in ERCOT from an |
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electric cooperative on the date this Act takes effect; |
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(2) has the authority to impose an ad valorem tax; and |
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(3) only provides wholesale water service. |
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(c) Notwithstanding any other provision of this chapter, on |
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the request of a water control and improvement district described |
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by Subsection (b) of this section, a consenting utility may request |
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a service area exception from the commission to provide retail |
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electric service to the requesting district at: |
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(1) the location of a designated district facility |
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where the requesting district is currently receiving retail |
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electric service from an electric cooperative on the date the |
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request for service area exception is filed with the commission; or |
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(2) the site of a future district facility that will be |
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located in the certificated area of the electric cooperative. |
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(d) A consenting entity may request a service area exception |
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under Subsection (c) of this section if the consenting entity: |
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(1) has an existing certificated area on the date the |
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request is filed that is contiguous to the certificated area of the |
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electric cooperative from which the district facility is receiving |
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service or the site where a future district facility will receive |
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service; and |
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(2) has an existing certificated area within 10 miles |
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or less of the applicable district facility. |
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(e) Section 37.056(c) does not apply to a request filed |
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under Subsection (c) of this section. |
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(f) Notwithstanding any other provision in 16 T.A.C. |
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Chapter 25, an electric cooperative may not contest and need not |
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consent to an application filed under Subsection (c) of this |
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section. |
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(g) The commission shall grant an application received |
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under Subsection (c) of this section within 45 days of the filing of |
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a complete application, and in accordance with the application |
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shall either: |
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(1) amend the consenting entity's certificate to |
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include the locations of each water control and improvement |
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district facility identified in the application; and amend the |
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certificate of the electric cooperative that was previously |
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certificated, on the date the application was filed, to remove the |
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locations of each water control and improvement district facility |
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identified in the application; or |
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(2) notwithstanding Section 37.060 or any other |
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provision of this chapter, amend the consenting entity's |
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certificate to include the locations of each water control and |
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improvement district facility identified in the application. |
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(h) Following approval of an application under this |
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section, a requesting district shall be responsible for paying |
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associated costs as follows: |
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(1) construction costs of any new transmission |
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facilities required to interconnect the district facilities |
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identified in the application to the consenting entity's |
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transmission system, to the extent that such costs are not |
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otherwise recoverable in the consenting utility's wholesale |
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transmission rates; |
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(2) any nonbypassable charges and other amounts that |
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the district is contractually obligated to pay to the electric |
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cooperative that was providing retail transmission service to the |
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requesting district on the date the application was filed; and |
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(3) other than the costs described in Subsection |
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(h)(2) of this section, the requesting district is not required to |
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pay additional stranded costs or penalties to the electric |
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cooperative as a result of the service area exception. |
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(i) The commission may only approve one application per |
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district facility from each water control and improvement district |
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under this section. |
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SECTION 3. This Act takes effect September 1, 2023. |