Amend CSHB 2912 by inserting a new appropriately numbered
SECTION to the bill to read as follows and renumbering subsequent
SECTIONS of the bill accordingly:
      SECTION ____. Subchapter D, Chapter 5, Water Code, is amended
by adding Section 5.130 to read as follows:
      Sec. 5.130.  ELECTRIC UTILITY NEGATIVE STRANDED COSTS. (a)
In this section:
            (1)  "Affiliated power generation company," "affiliated
retail electric provider," "electric utility," "freeze period," and
"transmission and distribution utility"  have the meanings assigned
by Section 31.002, Utilities Code.
            (2)  "Negative stranded costs" means the excess of the
market value of electric generation assets over the net book value
of those assets.
            (3)  "Stranded cost" has the meaning assigned by
Section 39.251, Utilities Code.
      (b)  Notwithstanding any other provision of law, the
commission has the necessary jurisdiction to administer and enforce
this section.  This subsection expires January 2, 2002.
      (c)  If at any time before January 1, 2002, the commission,
in conjunction with the Public Utility Commission of Texas,
determines that an electric utility that is subject to Section
39.254, Utilities Code,  does not have positive stranded costs
based on a computation under Section 39.201(h), Utilities Code, the
commission shall require the Public Utility Commission of Texas to
order the utility to discontinue the mitigation tools that are
allowed by Chapter 39, Utilities Code, and to reverse any prior
mitigation to the extent required to eliminate any estimated
negative stranded costs.  On issuance of an order under this
subsection, the Public Utility Commission of Texas  shall reflect
the reversal of previous mitigation in the transmission and
distribution rates.  In addition, the Public Utility Commission of
Texas shall reduce the affiliated retail electric provider's price
to beat as necessary to flow through any reductions to the
transmission and distribution rates associated with the reversal of
the previous mitigation.
      (d)  During the freeze period, the commission may require the
Public Utility Commission of Texas to order an electric utility
that has negative stranded costs under Section 39.254, Utilities
Code, together with the utility's affiliated retail electric
provider and affiliated transmission and distribution utility, to
credit the negative stranded costs to customers.  The Public
Utility Commission of Texas  shall prescribe the manner in which
the credit of negative stranded costs is made.  The electric
utility, together with its affiliated electric retail provider,
affiliated power generation company, and affiliated transmission
and distribution utility, shall file to finalize stranded costs and
reconcile those costs as required by Section 39.262, Utilities
Code.