By Danburg H.B. No. 3480
75R3217 DWS-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the authority of a political subdivision to select the
1-3 provider of electric service provided to the political subdivision.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Subtitle F, Title II, Public Utility Regulatory
1-6 Act of 1995 (Article 1446c-0, Vernon's Texas Civil Statutes), is
1-7 amended by adding Section 2.265 to read as follows:
1-8 Sec. 2.265. SELECTION OF PROVIDER BY SCHOOL DISTRICT.
1-9 (a) Notwithstanding any other provision of this Act, a political
1-10 subdivision may contract with any person for the provision of
1-11 electric energy to the facilities of the political subdivision.
1-12 The political subdivision and provider shall determine the price
1-13 and terms of provision of the service.
1-14 (b) A provider of electric energy to a political
1-15 subdivision:
1-16 (1) is not required to obtain a certificate of
1-17 convenience and necessity under this title;
1-18 (2) is not subject to rate or other price review under
1-19 this title in relation to service provided under this section; and
1-20 (3) is entitled to equal and nondiscriminatory access
1-21 to transmission and distribution services on an unbundled basis
1-22 that are provided by an electric or municipally owned utility.
1-23 (c) The commission by rule shall prescribe standards
1-24 relating to the authority of a political subdivision to contract
2-1 with a provider. The rules adopted under this subsection must, at
2-2 a minimum, address:
2-3 (1) the provision of transmission and distribution
2-4 services to the provider by an electric or municipally owned
2-5 utility at rates and under terms that are just, reasonable, and
2-6 nondiscriminatory;
2-7 (2) unbundling of electric or municipally owned
2-8 utility transmission and distribution facilities and services as
2-9 necessary to implement and administer this section; and
2-10 (3) the provision of service to the political
2-11 subdivision, including standards relating to:
2-12 (A) safety and reliability of the service;
2-13 (B) protecting the health and safety of the
2-14 public; and
2-15 (C) safety, reliability, and accuracy of any
2-16 equipment or meters required in relation to the service.
2-17 (d) Notwithstanding any other law, an electric or
2-18 municipally owned utility is not entitled to recover any stranded
2-19 investment that directly or indirectly results from:
2-20 (1) a political subdivision contracting with another
2-21 provider for the provision of electric energy; or
2-22 (2) unbundling of transmission and distribution
2-23 facilities and services as necessary to implement and administer
2-24 this section.
2-25 (e) Notwithstanding any other law, savings realized by a
2-26 school district under this section may not be considered in
2-27 determining the amount of state funding the district is entitled to
3-1 receive.
3-2 (f) In this section:
3-3 (1) "Political subdivision" means a municipality,
3-4 county, or school district.
3-5 (2) "School district" includes an independent school
3-6 district, a common school district, and a rural high school
3-7 district.
3-8 SECTION 2. (a) The Public Utility Commission of Texas shall
3-9 adopt the rules required by Section 2.265, Public Utility
3-10 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
3-11 Statutes), as added by this Act, not later than January 1, 1998.
3-12 (b) A political subdivision may not contract for the
3-13 provision of electric energy under Section 2.265, Public Utility
3-14 Regulatory Act of 1995 (Article 1446c-0, Vernon's Texas Civil
3-15 Statutes), as added by this Act, before the Public Utility
3-16 Commission of Texas adopts rules under Subsection (a) of this
3-17 section.
3-18 SECTION 3. The importance of this legislation and the
3-19 crowded condition of the calendars in both houses create an
3-20 emergency and an imperative public necessity that the
3-21 constitutional rule requiring bills to be read on three several
3-22 days in each house be suspended, and this rule is hereby suspended,
3-23 and that this Act take effect and be in force from and after its
3-24 passage, and it is so enacted.