Amend CSSB 2 by adding the following ARTICLE, appropriately
numbered, and renumbering the subsequent articles and sectoins
accordingly:
  ARTICLE __.  REVOCATION OF CERTIFICATE OF RETAIL PUBLIC UTILITY
      SECTION __. Subchapter G, Chapter 13, Water Code, is amended
by adding Section 13.2541 to read as follows:
      Sec. 13.2541.  REVOCATION OF CERTIFICATE WHEN SERVICE
PROVIDED TO A MUNICIPALITY. (a)  This section applies only to a
municipality with a population of more than 1.9 million.
      (b)  On request of a municipality served by a  retail public
utility, the commission at any time after notice and hearing may
revoke the retail public utility's certificate of public
convenience and necessity if it finds that the retail public
utility:
            (1)  has never provided, is no longer providing, or has
failed to provide continuous and adequate service in the
municipality requesting the revocation; or
            (2)  has been grossly or continuously mismanaged or has
grossly or continuously not complied with this chapter, commission
rules, or commission orders.
      (c)  If the certificate of a retail public utility is revoked
under Subsection (b), the municipality that requested the
revocation shall operate the decertified retail public utility for
an interim period prescribed by commission rule and shall request
commission approval to acquire the decertified retail public
utility's facilities and to transfer the decertified retail public
utility's certificate of convenience and necessity to the
municipality.  The municipality must apply in accordance with
Subchapter H.
      (d)  The compensation paid to the decertified retail public
utility for its facilities shall be determined by a qualified
individual or firm serving as independent appraiser agreed upon by
the decertified retail public utility and the municipality.  The
determination of compensation by the independent appraiser shall be
binding on the commission.  The municipality shall pay the costs of
the independent appraiser.  For the purpose of implementing this
section, the value of real property shall be determined according
to the standards prescribed by Chapter 21, Property Code, governing
actions in eminent domain.
      (e)  The commission shall determine whether the municipality
shall pay the compensation in a lump sum or over a specified
period.