Bill not drafted by TLC or Senate E&E.
Line and page numbers may not match official copy.
By Gallego H.B. No. 3165
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the appropriateness and reliability of the mix of
1-3 resources by electric utilities.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. The legislature finds that a diverse portfolio of
1-6 sources of electricity is critical to assure the reliability of our
1-7 supply of electricity, prevent unpredictable cost increases, and to
1-8 develop new industries that can benefit Texans. As the electric
1-9 industry moves to full cost competition, it may be difficult to
1-10 maintain a diverse portfolio of generating resources in a
1-11 competitive market when emphasis is on cost. If left unchecked,
1-12 the competitive market may put Texas consumers in a situation where
1-13 electric utilities are overly relevant on one resource and
1-14 dangerously vulnerable to any rise in the price of the resource.
1-15 S.E.D.C. found that Texas finds itself as rich in renewable
1-16 energy as it was in fossil fuels at the beginning of the 20th
1-17 century. Renewable energy resources coupled with energy efficiency
1-18 measures will sustain the state indefinitely, provide both
1-19 environmental and economic benefits, and maintain for Texas its
1-20 position as a world energy leader. Ensuring a secure and cost
1-21 effective energy future for the state of Texas is an important
1-22 goal.
1-23 SECTION 2. Subtitle B, Title II, The Public Utility
1-24 Regulatory Act of 1995 (Article 1446c-0 Vernon's Texas Civil
2-1 Statutes), section 2.051(a)(3) is amended as follows:
2-2 (a) The commission by rule shall develop an integrated
2-3 resource planning process to provide reliable energy service at the
2-4 lowest reasonable system cost. In determining the lowest
2-5 reasonable system cost of an electric utility's plan, the
2-6 commission shall consider in addition to direct costs the
2-7 following:
2-8 (1) the effect on the rates and bills of various types
2-9 of customers;
2-10 (2) minimization of the risks of future fuel costs and
2-11 regulations;
2-12 (3) the appropriateness and reliability of a mix of
2-13 resources; and appropriate and reliable mix of resources shall
2-14 [may] include a portfolio of cost effective resources of power
2-15 including but not limited to resources that are fueled and non
2-16 fueled, such as renewable resources and conservation measures and a
2-17 mixture of long and short term contracts[;] By the year 2001 each
2-18 utility shall either generate or purchase at least 1% of the power
2-19 they sell from renewable resources. This renewable portfolio
2-20 requirement shall increase to 5% of power purchased or generated by
2-21 2005 and 10% by 2010. Any utility or power marketer who generates
2-22 an excess power may sell renewable generation credits to other
2-23 utilities.
2-24 SECTION 3. This Act takes effect September 1, 1997.
2-25 SECTION 4. The importance of this legislation and the
2-26 crowded condition of the calendars in both houses create an
2-27 emergency and an imperative public necessity that the
2-28 constitutional rule requiring bills to be read on three several
2-29 days in each house be suspended, and this rule is hereby suspended.