By Gallego                                              H.B. No. 78
         76R478 JJT-F                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the appropriate mix of resources of an electric
 1-3     utility.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Section 34.003(c), Utilities Code, is amended to
 1-6     read as follows:
 1-7           (c)  The mix of resources [An appropriate and reliable mix]
 1-8     under Subsection (b)(4) must [may] include a portfolio of
 1-9     cost-effective  sources of power, including fueled and nonfueled
1-10     resources, such as renewable resources and conservation measures,
1-11     and a mixture of long-term and short-term contracts.
1-12           SECTION 2.  Subchapter A, Chapter 34, Utilities Code, is
1-13     amended by adding Section 34.0055 to read as follows:
1-14           Sec. 34.0055.  RENEWABLE RESOURCES REQUIREMENT.  (a)  The
1-15     commission by rule shall establish a renewable generation credit
1-16     program under which each generating electric utility that sells
1-17     power to another entity shall submit to the commission renewable
1-18     generation credits equal to:
1-19                 (1)  at least one percent of the power the utility sold
1-20     during the previous year for each year of the period beginning
1-21     January 1, 2000, and ending December 31, 2004;
1-22                 (2)  at least five percent of the power the utility
1-23     sold during the previous year for each year of the period beginning
1-24     January 1, 2005, and ending December 31, 2009; and
 2-1                 (3)  at least 10 percent of the power the utility sold
 2-2     during the previous year for each year beginning on or after
 2-3     January 1, 2010.
 2-4           (b)  The commission shall issue to a generating electric
 2-5     utility that sells power to another entity one renewable generation
 2-6     credit for each megawatt of power the utility generates using
 2-7     renewable resources.
 2-8           (c)  An electric utility that possesses a renewable
 2-9     generation credit may convey the credit to another utility subject
2-10     to the credit program.
2-11           (d)  The commission by rule shall prescribe procedures
2-12     governing:
2-13                 (1)  the issuance and submission of renewable
2-14     generation credits; and
2-15                 (2)  the recording and monitoring of credits conveyed
2-16     under the program.
2-17           (e)  The commission may assess a fee against a person
2-18     submitting or conveying renewable generation credits in an amount
2-19     necessary to cover the costs of administering the credit program.
2-20           SECTION 3.  Not later than January 15, 2005, the Public
2-21     Utility Commission of Texas shall submit a report to the 79th
2-22     Legislature on:
2-23                 (1)  the use of renewable resources for electric
2-24     generation in this state;
2-25                 (2)  the progress of electric utilities in meeting the
2-26     requirements of Section 34.0055, Utilities Code, as added by this
2-27     Act; and
 3-1                 (3)  whether it is possible for electric utilities to
 3-2     meet the requirements of Section 34.0055, Utilities Code, as added
 3-3     by this Act, by January 1, 2010, without threatening the
 3-4     reliability  of the state's electric power system.
 3-5           SECTION 4.  This Act takes effect September 1, 1999.
 3-6           SECTION 5.  The importance of this legislation and the
 3-7     crowded condition of the calendars in both houses create an
 3-8     emergency and an imperative public necessity that the
 3-9     constitutional rule requiring bills to be read on three several
3-10     days in each house be suspended, and this rule is hereby suspended.