By Chisum H.B. No. 526
76R2911 CBH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the restructuring of the electric industry and to the
1-3 continuation of the Public Utility Commission of Texas and the
1-4 Office of Public Utility Counsel.
1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-6 SECTION 1. Subtitle B, Title 2, Utilities Code, is amended
1-7 by adding Chapter 39 to read as follows:
1-8 CHAPTER 39. IMPLEMENTATION OF RETAIL COMPETITION
1-9 SUBCHAPTER A. GENERAL PROVISIONS
1-10 Sec. 39.001. DEFINITIONS. In this chapter:
1-11 (1) "Generation assets" includes generation plants and
1-12 generation-related costs that have been deferred for future
1-13 recovery by order of a regulatory authority or as a result of the
1-14 practice of a regulatory authority.
1-15 (2) "Net stranded costs" means:
1-16 (A) the excess of the net book value of all
1-17 generation assets over the market value of those assets;
1-18 (B) any above-market fuel or fuel transportation
1-19 contract costs relating to generation assets;
1-20 (C) any above-market purchased power contract
1-21 costs; and
1-22 (D) any other investment the commission by rule
1-23 classifies as a net stranded cost.
1-24 (3) "Stranded cost" means:
2-1 (A) the excess of the book value of a generation
2-2 asset over the market value of the asset;
2-3 (B) any above-market fuel or fuel transportation
2-4 contract costs relating to a generation asset;
2-5 (C) any above-market purchased power contract
2-6 costs; and
2-7 (D) any other investment the commission by rule
2-8 classifies as a stranded cost.
2-9 (Sections 39.002-39.050 reserved for expansion
2-10 SUBCHAPTER B. GENERAL GUIDELINES
2-11 Sec. 39.051. APPLICATION OF SUBCHAPTER. Except as otherwise
2-12 expressly provided by this subchapter, this subchapter applies to
2-13 each electric utility and municipally owned utility.
2-14 Sec. 39.052. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. Each
2-15 computation required by this chapter shall be made using applicable
2-16 generally accepted accounting principles.
2-17 Sec. 39.053. RETAIL COMPETITION FOR ALL CUSTOMERS. On and
2-18 after December 31, 2003, each electricity customer in this state
2-19 shall have the right to choose the customer's supplier of
2-20 electricity.
2-21 Sec. 39.054. COMMISSION AUTHORITY REGARDING RETAIL
2-22 COMPETITION. A rule, policy, or action of the commission relating
2-23 to the implementation of retail competition may not take effect
2-24 before December 31, 2003, unless otherwise expressly required by
2-25 statute.
2-26 Sec. 39.055. OPEN ACCESS TO TRANSMISSION AND DISTRIBUTION
2-27 FACILITIES. (a) On and after December 31, 2003, each electric
3-1 utility and municipally owned utility that owns or operates
3-2 transmission or distribution facilities shall provide transmission
3-3 or distribution service, or both, at rates and terms, including
3-4 terms of access, that are comparable to the rates and terms of the
3-5 entity's use of its system.
3-6 (b) The commission shall ensure that, on and after December
3-7 31, 2003, each electric utility and municipally owned utility
3-8 provides nondiscriminatory access to transmission and distribution
3-9 service for qualifying facilities, exempt wholesale generators,
3-10 power marketers, utilities, and other electricity sellers.
3-11 (c) Notwithstanding Subchapter C or Section 36.201, the
3-12 commission shall use an appropriate method to provide for the
3-13 concurrent recovery of, and a reasonable return on, an electric
3-14 utility's investments in new transmission facilities incurred after
3-15 September 1, 1999. For purposes of this subsection, a reasonable
3-16 return on investment is the rate of return approved for the utility
3-17 in the utility's most recent transmission cost-of-service case.
3-18 Sec. 39.056. EXEMPTION FOR CERTAIN UTILITIES. (a) An
3-19 investor-owned electric utility that had in effect on January 1,
3-20 1997, and extending beyond December 31, 2003, a system-wide rate
3-21 freeze for residential and commercial customers in this state that
3-22 has been found by the regulatory authority to be in the public
3-23 interest is exempt from the requirements of this chapter only if
3-24 application of this chapter to such a utility is not permitted by
3-25 a federal court having jurisdiction or by the regulatory authority.
3-26 (b) If application of this chapter to a utility described by
3-27 Subsection (a) is not permitted by a federal court having
4-1 jurisdiction or by the regulatory authority, the utility:
4-2 (1) shall offer customer choice at the end of the
4-3 utility's previously approved rate freeze period; and
4-4 (2) does not have a claim for stranded cost recovery
4-5 under Subchapter C.
4-6 (c) Any ratepayer of a utility described by but not yet
4-7 exempt under Subsection (a) may request that the regulatory
4-8 authority determine whether the utility should be exempt from the
4-9 requirements of this chapter. In making a determination under this
4-10 subsection, the regulatory authority shall consider:
4-11 (1) the total economic cost to customers if this
4-12 chapter is applied to the utility as compared to the system-wide
4-13 rate freeze described by Subsection (a);
4-14 (2) the effect applying this chapter would have on the
4-15 utility's financial integrity; and
4-16 (3) whether applying this chapter to the utility is in
4-17 the public interest.
4-18 (Sections 39.057-39.100 reserved for expansion
4-19 SUBCHAPTER C. RATE FREEZE AND STRANDED COST RECOVERY
4-20 Sec. 39.101. APPLICATION OF SUBCHAPTER. Except as otherwise
4-21 expressly provided by this subchapter, this subchapter applies only
4-22 to an electric utility that is:
4-23 (1) an investor-owned electric utility; or
4-24 (2) an electric cooperative corporation that has not
4-25 elected partial rate deregulation under Subchapters F and G,
4-26 Chapter 36.
4-27 Sec. 39.102. DEFINITIONS. In this subchapter:
5-1 (1) "Cost of service" means the total reasonable and
5-2 necessary operating expenses incurred by an electric utility in
5-3 rendering electric service to its customers, plus a reasonable
5-4 return on invested capital.
5-5 (2) "Rate of return on common stock equity" means the
5-6 percentage measure of an investor-owned electric utility's earnings
5-7 on the utility's common stock, computed by dividing after-tax
5-8 income, minus preferred dividends and interest payments, by the
5-9 average book value of common equity over an annual period.
5-10 Sec. 39.103. RATE FREEZE. (a) In this section, "force
5-11 majeure" means a major event or combination of major events beyond
5-12 the control of an electric utility that the regulatory authority
5-13 finds has increased the utility's total nonfuel costs or decreased
5-14 the utility's total nonfuel revenues related to the generation and
5-15 delivery of electricity by five percent or more for any calendar
5-16 year during the rate freeze, including:
5-17 (1) a new or expanded state or federal statutory or
5-18 regulatory requirement or program;
5-19 (2) a hurricane, tornado, ice storm, or other natural
5-20 disaster;
5-21 (3) an act of war, terrorism, or civil disturbance; or
5-22 (4) any other major event that the commission
5-23 determines should reasonably be classified as force majeure.
5-24 (b) Each electric utility shall freeze the utility's retail
5-25 base rate tariffs as those tariffs exist on January 1, 1999.
5-26 Except for force majeure, the utility may not change those retail
5-27 base rate tariffs before December 30, 2003.
6-1 (c) This section does not limit or alter the ability of an
6-2 electric utility to revise the utility's fuel factor or reconcile
6-3 fuel expenses and to refund fuel overcollections or to surcharge
6-4 fuel undercollections to customers as authorized by the utility's
6-5 tariffs or Section 36.203.
6-6 Sec. 39.104. ECONOMIC DEVELOPMENT RATES. (a)
6-7 Notwithstanding Section 39.103, an electric utility or municipally
6-8 owned utility may, at the utility's option, provide electricity at
6-9 a price that is less than the utility's retail tariff rate, but not
6-10 less than the entity's marginal cost, to:
6-11 (1) a new industrial or commercial customer; or
6-12 (2) a new or expanded facility of an existing
6-13 industrial or commercial customer.
6-14 (b) An economic development rate under Subsection (a) must
6-15 be provided to a single point of delivery that:
6-16 (1) is within the certificated service area of the
6-17 electric utility or municipally owned utility offering the rate;
6-18 and
6-19 (2) has the potential to create new full-time
6-20 employment positions at least equal to the lesser of:
6-21 (A) 500; or
6-22 (B) one-tenth of one percent of the population
6-23 of the county in which the point of delivery is located.
6-24 (c) Approval of the regulatory authority is not required for
6-25 an economic development rate established under this section.
6-26 Sec. 39.105. QUALIFIED EARNINGS. (a) For purposes of this
6-27 subchapter, the "qualified earnings" of an investor-owned electric
7-1 utility are earnings that would cause the utility's rate of return
7-2 on common stock equity to exceed the rate last established for that
7-3 utility by the regulatory authority, and the "qualified earnings"
7-4 of an electric cooperative corporation are earnings that exceed the
7-5 corporation's cost of service.
7-6 (b) An electric utility shall use qualified earnings to
7-7 recover net stranded costs or to benefit ratepayers in accordance
7-8 with Section 39.108.
7-9 (c) In determining whether qualified earnings exist for an
7-10 electric utility, the utility's actual annual costs shall be used,
7-11 except that the utility's operating and maintenance costs are
7-12 limited to the amount of those operating and maintenance costs
7-13 incurred in calendar year 1998, with an allowance for yearly
7-14 inflation.
7-15 Sec. 39.106. DETERMINATION OF MARKET VALUE OF GENERATING
7-16 CAPACITY. (a) Not later than August 1 of each year, beginning in
7-17 1999 and ending in 2003, the commission shall determine and
7-18 publicly announce the commission's preliminary determination of the
7-19 market value of fossil-fueled and nuclear-fueled electric
7-20 generating capacity, on a dollar-per-megawatt basis.
7-21 (b) The commission shall base the market value of
7-22 fossil-fueled generating capacity on the average sale price for all
7-23 fossil-fueled electric generating units sold since January 1, 1997,
7-24 in the United States in market-based transactions in which the
7-25 transaction prices are published or otherwise obtainable by the
7-26 commission.
7-27 (c) The commission shall base the market value of
8-1 nuclear-fueled electric generating capacity on the average sale
8-2 price for all nuclear-fueled generating units sold since January 1,
8-3 1997, in the United States in market-based transactions in which
8-4 the transaction prices are published or otherwise obtainable by the
8-5 commission.
8-6 (d) After the commission announces the commission's
8-7 preliminary determinations under Subsections (b) and (c), the
8-8 commission shall request and consider the comments of any
8-9 interested person regarding the commission's collection of sales
8-10 data and computation of average sale prices.
8-11 (e) The commission shall announce the commission's final
8-12 determination not later than September 1 of each year.
8-13 (f) The commission may make a determination under this
8-14 section in an informal proceeding. A determination under this
8-15 section is not a contested case for purposes of Chapter 2001,
8-16 Government Code, or a rate change for purposes of Chapter 36.
8-17 Sec. 39.107. DETERMINATION OF GENERATION PLANT NET STRANDED
8-18 COSTS. (a) Each electric utility shall annually compute the
8-19 utility's net stranded costs that relate to generation plants in
8-20 accordance with this section.
8-21 (b) If, after January 1, 1999, the electric utility sells
8-22 all or some of the utility's generation plants in a bona fide
8-23 third-party transaction under a competitive offering, the market
8-24 value of the generation plants sold is the total net value realized
8-25 from the sale.
8-26 (c) The market value of a non-nuclear generation plant that
8-27 is not sold in accordance with Subsection (b) is determined by
9-1 applying to the utility's installed fossil-fuel capacity the most
9-2 recent commission determination of average market value of
9-3 fossil-fueled electric generating capacity under Section 39.106(e).
9-4 (d) The market value of a nuclear generation plant that is
9-5 not sold in accordance with Subsection (b) is the greater of $450
9-6 per kilowatt of installed capacity or the value determined by
9-7 applying to the utility's installed nuclear capacity the most
9-8 recent commission determination of average market value of
9-9 nuclear-fueled electric generating capacity under Section
9-10 39.106(e).
9-11 Sec. 39.108. USE OF QUALIFIED EARNINGS. (a) An electric
9-12 utility that has positive net stranded costs shall:
9-13 (1) use the utility's qualified earnings to reduce net
9-14 stranded costs on a dollar-for-dollar basis by accelerating
9-15 depreciation and amortization of generation assets;
9-16 (2) redirect depreciation from transmission and
9-17 distribution assets to generation assets as necessary to mitigate
9-18 stranded costs; and
9-19 (3) employ reasonable methods to mitigate stranded
9-20 costs by renegotiating, where appropriate, purchased power and fuel
9-21 contracts.
9-22 (b) An electric utility that applies qualified earnings to
9-23 reduce net stranded costs in accordance with Subdivision (a)(1)
9-24 shall immediately stop applying qualified earnings to reduce net
9-25 stranded costs when the utility no longer has positive net stranded
9-26 costs and shall immediately begin applying qualified earnings to
9-27 benefit ratepayers in accordance with Subsection (c).
10-1 (c) An electric utility that does not have positive net
10-2 stranded costs shall use qualified earnings to benefit ratepayers
10-3 by refunding at least 75 percent of those qualified earnings to the
10-4 utility's customers through the purchased power cost recovery
10-5 factor or other similar mechanism.
10-6 Sec. 39.109. REPORTS AND COMMISSION ACTION. (a) Each
10-7 electric utility to which this subchapter applies shall file with
10-8 the commission an annual report showing:
10-9 (1) the utility's net stranded costs, including
10-10 generation plant costs computed in accordance with Section 39.107;
10-11 (2) the annual and cumulative amounts recovered under
10-12 Section 39.108; and
10-13 (3) whether the utility has started using qualified
10-14 earnings to benefit ratepayers in accordance with Section 39.108(c)
10-15 or when the utility anticipates it will begin to use qualified
10-16 earnings for that purpose.
10-17 (b) If the commission finds that an electric utility did not
10-18 timely comply with Section 39.108(c), the commission may:
10-19 (1) bring an enforcement action against the utility to
10-20 require the utility to comply; and
10-21 (2) impose an administrative penalty against the
10-22 utility equal to 25 percent of the amount the utility would have
10-23 retained if the utility had timely complied with Section 39.108(c).
10-24 Sec. 39.110. TRUE-UP. (a) Not earlier than January 1,
10-25 2004, the commission shall conduct a "true-up" proceeding for an
10-26 electric utility that is still applying qualified earnings to
10-27 reduce net stranded costs in accordance with Section 39.108 on
11-1 December 30, 2003.
11-2 (b) In determining the utility's remaining positive net
11-3 stranded costs the commission shall compare the book value of the
11-4 utility's generation assets, with consideration of the measures
11-5 used under Sections 39.105-39.108, to the market value of those
11-6 assets as of December 31, 2003. The commission shall compute the
11-7 market value of a generation asset in accordance with the
11-8 applicable provisions of Section 39.106, except that the commission
11-9 shall adjust the average market value of a fossil-fueled generation
11-10 asset for locational, environmental, and other plant-specific
11-11 circumstances that affect the generating capacity being valued.
11-12 (c) If the book value exceeds market value, the commission
11-13 shall authorize the utility to recover that excess through a
11-14 non-bypassable wires charge. If the book value is less than market
11-15 value, the commission shall order the utility to correct the
11-16 over-recovery by refunding the over-recovery, with interest, to
11-17 customers or reversing the depreciation redirection taken under
11-18 Section 39.108(a), as necessary.
11-19 Sec. 39.111. DUTY OF MUNICIPALLY OWNED UTILITY. Each
11-20 municipally owned utility shall:
11-21 (1) take all necessary steps to mitigate any stranded
11-22 costs before December 31, 2003; and
11-23 (2) file with the commission an annual report showing
11-24 the municipally owned utility's estimate of the utility's net
11-25 stranded costs and the annual and cumulative amounts of net
11-26 stranded costs recovered.
11-27 Sec. 39.112. EFFECT OF SUBCHAPTER; SALE REQUIREMENT
12-1 PROHIBITED. (a) This subchapter does not require the abrogation
12-2 of lawful contracts.
12-3 (b) The regulatory authority may not require the sale of
12-4 assets by an electric utility.
12-5 (Sections 39.113-39.150 reserved for expansion
12-6 SUBCHAPTER D. JOINT COMMITTEE ON ELECTRIC INDUSTRY RESTRUCTURING
12-7 Sec. 39.151. CREATION OF COMMITTEE. (a) The Joint
12-8 Committee on Electric Industry Restructuring is created to oversee
12-9 the transition to and establishment of a competitive retail
12-10 electric industry on December 31, 2003.
12-11 (b) The committee is composed of six senators appointed by
12-12 the lieutenant governor and six members of the house of
12-13 representatives appointed by the speaker of the house of
12-14 representatives. Members of the committee serve at the pleasure of
12-15 the appointing officer.
12-16 (c) The lieutenant governor and speaker of the house of
12-17 representatives shall designate members of the committee to serve
12-18 as the presiding officer and assistant presiding officer and shall
12-19 alternate that designation.
12-20 Sec. 39.152. GENERAL POWERS AND DUTIES OF COMMITTEE. The
12-21 committee shall thoroughly assess the issues relevant to the
12-22 implementation of retail competition in the electric industry,
12-23 including:
12-24 (1) consumer protection measures that will be
12-25 necessary to ensure protection of consumers' interests in a
12-26 competitive retail electricity market;
12-27 (2) alternative methods for recovering any positive
13-1 net stranded costs that remain when retail competition is
13-2 implemented;
13-3 (3) appropriate programs to ensure effective consumer
13-4 education regarding changes in the electric industry and consumer
13-5 protection measures;
13-6 (4) the effects of electric industry restructuring on
13-7 state and local tax revenues;
13-8 (5) the proper manner for implementing unbundling of
13-9 utilities' existing integrated functions into generation functions,
13-10 transmission and distribution functions, and retail sales and
13-11 customer service functions so as to ensure that an entity does not
13-12 receive preferential access to regulated services by virtue of an
13-13 affiliate relationship;
13-14 (6) a code of conduct to prohibit the subsidization of
13-15 competitive functions through the use of revenues from affiliated
13-16 companies providing regulated services and to prohibit
13-17 discrimination with respect to the provision of regulated services
13-18 such as transmission and distribution access;
13-19 (7) reliability standards relating to the delivery of
13-20 electricity to retail customers by electric utilities; and
13-21 (8) any other issues the committee considers relevant.
13-22 Sec. 39.153. MONITORING AND OVERSIGHT DUTIES. The committee
13-23 shall:
13-24 (1) monitor the transition to retail competition in
13-25 the electricity market; and
13-26 (2) conduct active oversight of the activities of the
13-27 commission relating to the implementation of retail competition in
14-1 the electricity market.
14-2 (Sections 39.154-39.200 reserved for expansion
14-3 SUBCHAPTER E. RENEWABLE ENERGY ASSISTANCE PROGRAM
14-4 Sec. 39.201. LEGISLATIVE FINDING. The legislature finds
14-5 that the encouragement and establishment of renewable energy is an
14-6 important public policy but that because of high initial capital
14-7 costs, the market cannot currently provide consumers with
14-8 sufficient renewable energy supplies.
14-9 Sec. 39.202. RENEWABLE ENERGY ASSISTANCE PROGRAM BOARD. (a)
14-10 The Renewable Energy Assistance Program Board is composed of:
14-11 (1) eight members appointed by the governor with the
14-12 advice and consent of the senate; and
14-13 (2) one member of the commission appointed by the
14-14 governor or a commission designee appointed by the commission and
14-15 approved by the governor.
14-16 (b) The governor shall designate a presiding officer and
14-17 assistant presiding officer from the members appointed under
14-18 Subsection (a)(1).
14-19 (c) Four of the members appointed under Subsection (a)(1)
14-20 must be actively engaged in or have extensive experience in the
14-21 banking or financial services industry. Two of the members
14-22 appointed under Subsection (a)(1) must be actively involved in
14-23 environmental issues. The remaining two members appointed under
14-24 Subsection (a)(1) must be public members who represent consumers.
14-25 (d) The members appointed under Subsection (a)(1) serve
14-26 staggered two-year terms.
14-27 (e) The board shall employ an executive director and not
15-1 more than two employees to whom the board may delegate the
15-2 responsibility to implement and administer the powers and duties of
15-3 the board.
15-4 Sec. 39.203. RENEWABLE ENERGY ASSISTANCE PROGRAM. (a) The
15-5 board shall administer a renewable energy assistance program to
15-6 assist businesses in the construction of new generation facilities
15-7 that use renewable energy by providing grants to businesses for
15-8 interest payments on loans for construction costs. The amount of a
15-9 grant may not exceed the prime commercial lending interest rate
15-10 plus two percent interest.
15-11 (b) The board by rule shall prescribe the qualifications for
15-12 receiving a grant under this section.
15-13 (c) In determining whether to award a grant under this
15-14 section, the board shall consider:
15-15 (1) the financial viability of an applicant's
15-16 proposal;
15-17 (2) the applicant's credit history;
15-18 (3) whether a private lending institution has
15-19 committed to loaning financial resources to an applicant for
15-20 construction of a new electric generation facility that uses
15-21 renewable energy;
15-22 (4) whether an applicant has acquired a buyer for the
15-23 renewable electricity proposed to be generated; and
15-24 (5) any other relevant information the board considers
15-25 appropriate.
15-26 Sec. 39.204. ANNUAL REPORT. Not later than January 1 of
15-27 each even-numbered year, the board shall submit a report detailing
16-1 its operations to the:
16-2 (1) governor;
16-3 (2) lieutenant governor;
16-4 (3) speaker of the house of representatives; and
16-5 (4) Joint Committee on Electric Industry
16-6 Restructuring.
16-7 Sec. 39.205. OFFICE SPACE AND MEETINGS. The commission
16-8 shall provide reasonable office space to the executive director and
16-9 employees of the board and allow the board to meet in the
16-10 commission facilities.
16-11 Sec. 39.206. FUNDING. (a) The board is funded through an
16-12 assessment imposed on each electric utility and municipally owned
16-13 utility that sells electricity to the ultimate consumer in this
16-14 state.
16-15 (b) The board shall annually set the rate of the assessment.
16-16 In setting the annual rate, the board shall ensure that:
16-17 (1) the assessment produces not more than the amount
16-18 necessary to administer this subchapter, which amount may not
16-19 exceed $5 million each fiscal year; and
16-20 (2) the rate of the assessment is equal to not more
16-21 than 1/35 of one percent of an electric utility's or municipally
16-22 owned utility's gross receipts from rates charged to the ultimate
16-23 consumer in this state for electricity.
16-24 (c) Sections 16.002, 16.003, and 16.004 apply to the
16-25 assessment.
16-26 Sec. 39.207. LIMITATION ON ADMINISTRATIVE EXPENSES. The
16-27 board may not use more than five percent of the revenue
17-1 appropriated to the board for administrative expenses.
17-2 Sec. 39.208. ABOLITION OF BOARD AND ASSESSMENT. The board
17-3 and the assessment are abolished December 30, 2003. Any grant
17-4 commitment and revenue shall be transferred to the comptroller for
17-5 administration on that date.
17-6 Sec. 39.209. EXPIRATION OF SUBCHAPTER. This subchapter
17-7 expires January 1, 2004.
17-8 SECTION 2. Sections 12.005 and 13.002, Utilities Code, are
17-9 amended to read as follows:
17-10 Sec. 12.005. APPLICATION OF SUNSET ACT. The Public Utility
17-11 Commission of Texas is subject to Chapter 325, Government Code
17-12 (Texas Sunset Act). Unless continued in existence as provided by
17-13 that chapter, the commission is abolished and this title expires
17-14 September 1, 2005 [2001]. Subtitle C and the functions of the
17-15 commission relating to the regulation of the telecommunications
17-16 industry are subject to review under Chapter 325, Government Code,
17-17 during the period in which state agencies abolished in 2001 are
17-18 reviewed. If Subtitle C is not continued in existence as provided
17-19 by that chapter, Subtitle C expires on September 1, 2001.
17-20 Sec. 13.002. APPLICATION OF SUNSET ACT. The Office of
17-21 Public Utility Counsel is subject to Chapter 325, Government Code
17-22 (Texas Sunset Act). Unless continued in existence as provided by
17-23 that chapter, the office is abolished and this chapter expires
17-24 September 1, 2005 [2001].
17-25 SECTION 3. Section 31.003, Utilities Code, is repealed.
17-26 SECTION 4. This Act takes effect September 1, 1999.
17-27 SECTION 5. An electric utility to which Subchapter C,
18-1 Chapter 39, Utilities Code, as added by this Act, applies shall
18-2 file the first report required by Section 39.109, Utilities Code,
18-3 as added by this Act, on December 1, 1999. A municipally owned
18-4 utility shall file the first report required by Section 39.111,
18-5 Utilities Code, as added by this Act, on December 1, 1999.
18-6 SECTION 6. (a) As soon as possible after the effective date
18-7 of this Act, the lieutenant governor and speaker of the house of
18-8 representatives shall appoint the initial members of the Joint
18-9 Committee on Electric Industry Restructuring.
18-10 (b) After appointing the initial members, the lieutenant
18-11 governor shall designate a member of the committee as the presiding
18-12 officer and the speaker of the house of representatives shall
18-13 designate a member of the committee as the assistant presiding
18-14 officer.
18-15 (c) The Joint Committee on Electric Industry Restructuring
18-16 shall make recommendations to the 77th Legislature, Regular
18-17 Session, regarding a transition to and establishment of a
18-18 competitive retail electric industry on December 31, 2003.
18-19 SECTION 7. (a) As soon as possible after the effective date
18-20 of this Act, the governor shall appoint the members of the
18-21 Renewable Energy Assistance Program Board.
18-22 (b) The governor shall appoint the members of the Renewable
18-23 Energy Assistance Program Board so that:
18-24 (1) two banking or financial services industry
18-25 members, one environmental member, and one public member serve
18-26 terms expiring on January 31, 2000; and
18-27 (2) two banking or financial services industry
19-1 members, one environmental member, and one public member serve
19-2 terms expiring on January 31, 2001.
19-3 SECTION 8. The importance of this legislation and the
19-4 crowded condition of the calendars in both houses create an
19-5 emergency and an imperative public necessity that the
19-6 constitutional rule requiring bills to be read on three several
19-7 days in each house be suspended, and this rule is hereby suspended.