HBA-DMD H.B. 3203 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3203
By: Danburg
State Affairs
4/8/1999
Introduced



BACKGROUND AND PURPOSE 

Because retail competition in their core business could lead to reduced
revenues, electric utilities or their parent corporations are diversifying
into other regulated businesses. H.B. 3203 requires the Public Utility
Commission (commission) to establish rules prohibiting a regulated utility
from providing retail customer energy services which are available in the
market, such as air conditioning installation and repair, lighting,
building controls, electrical wiring installation or related services. This
bill also requires the commission to establish rules limiting the
relationship of a regulated utility with its affiliates in order to avoid
anti-competitive abuses of market power. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the Public Utility Commission in
SECTION 1 (Section 38.023, Utilities Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter B, Chapter 38, Utilities Code, by adding
Section 38.023, as follows: 

Sec. 38.023. COMPETITIVE ACTIVITIES AND LIMITATIONS ON A UTILITY WITH
REGARD TO ITS AFFILIATES. (a) Requires the Public Utility Commission
(commission) to establish rules prohibiting a regulated utility from
providing retail customer energy services which are available in the
market, such as air conditioning installation and repair, lighting,
building controls, electrical wiring installation or related services.  

(b) Requires the commission to establish rules limiting the relationship of
a regulated utility with its affiliates in order to avoid anti-competitive
abuses of market power. Requires the rule to establish the requirements for
the implementation of contracts between regulated utilities and their
affiliates and set forth the requirements for enforcement including the
compliance proceedings necessary to assure certain provisions.  

SECTION 2.Effective date: September 1, 1999. 

SECTION 3.Emergency clause.