Amend Amendment No. 65 by Wilson to CSHB 2912 (page 126,
proposed amendments packet) by striking all below line 3 and
substituting:
      SECTION ____. (a) 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.
      (c)  If the commission 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 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 commission shall
reflect the reversal of previous mitigation in the transmission and
distribution rates.  In addition, the commission 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 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 commission 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 make a filing with the commission to
finalize stranded costs and reconcile those costs in the manner
required by Section 39.262, Utilities Code.
      (b)  Notwithstanding any other law, the powers of the Public
Utilities Commission of Texas relative to the subject matter of
Section 5.130, Water Code, as added by this Act, are transferred to
the Texas Natural Conservation Commission.