Amend CSSB 7 in Section 39.157 as added by SECTION 33 of the
bill (Committee Printing page 23, lines 7-9), by striking
Subsection (f) and substituting the following new Subsection (f):
"(f)  On a finding, after notice and opportunity for hearing, that
a power generation company has engaged in predatory pricing, the
commission may invoke the remedies provided for in Subsection
15.20(a) of the Business and Commerce Code.  Alternatively, the
commission may refer a finding of predatory pricing to the attorney
general for investigation and potential suit under Chapter 15,
Title 2 of the Business and Commerce Code.  The commission shall
not find that a power generation company has engaged in predatory
pricing unless it is established that the following elements are
met:
            (1)  the power generation company has an objectively
reasonable expectation of recouping its losses due to the alleged
predatory pricing by charging higher prices later, that is,
predatory pricing is economically feasible; and
            (2)  one of the following is met:
                  (A)  the price charged is below average variable
cost; or
                  (B)  the following conditions exist:
                        (i)  there are substantial barriers to
market entry;
                        (ii)  the power generation company is
charging a price below its short-run profit-maximizing price and
its average total cost; and
                        (iii)  the benefits of the power generation
company's price depended on its tendency to discipline or eliminate
competition and thereby enhance the firm's long-term ability to
reap the benefits of monopoly power."