Enrolled Bill Summary

Previous law exempted electric cooperatives from competition unless a cooperative's governing body opted to provide customer choice. The definition of an electric cooperative included certain successor utilities formed as a result of cooperative conversion, and for those successors, the law established special statutory provisions on retail rates, including rate review by the courts. Senate Bill 1280 amends the Public Utility Regulatory Act to remove such successors from the definition of an electric cooperative and to repeal the special rate provisions applicable to them. In addition, for utilities that, before September 1, 2003, were not subject to the chapter restructuring the electric utility industry, the bill adds provisions to establish regulatory oversight by the Public Utility Commission of Texas (PUC). The bill empowers the PUC to establish related schedules and procedures, taking into account specified service factors.