By Danburg H.B. No. 2505
77R5834 CBH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the "price to beat" for residential and small
1-3 commercial electricity customers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Sections 39.202(a), (e), (f), and (n), Utilities
1-6 Code, are amended to read as follows:
1-7 (a) An [From January 1, 2002, until January 1, 2007, an]
1-8 affiliated retail electric provider shall make available to
1-9 residential and small commercial customers of its affiliated
1-10 transmission and distribution utility rates that, on a bundled
1-11 basis, are six percent less than the affiliated electric utility's
1-12 corresponding average residential and small commercial rates, on a
1-13 bundled basis, that were in effect on January 1, 1999, adjusted to
1-14 reflect the fuel factor determined as provided by Subsection (b)
1-15 and adjusted for any base rate reduction as stipulated to by an
1-16 electric utility in a proceeding for which a final order had not
1-17 been issued by January 1, 1999. These rates on a bundled basis
1-18 shall be known as the "price to beat" for residential and small
1-19 commercial customers, except that the "price to beat" for a utility
1-20 is the rate in effect as a result of a settlement approved by the
1-21 commission after January 1, 1999, if the commission determines that
1-22 base rates for that utility have been reduced by more than 12
1-23 percent as a result of a final order issued by the commission after
1-24 October 1, 1998. The affiliated retail electric provider shall
2-1 make those rates available to residential and small commercial
2-2 providers until the later of January 1, 2007, or the date the
2-3 commission determines that:
2-4 (1) for service to residential customers:
2-5 (A) 40 percent or more of the electric power
2-6 consumed by residential customers within the affiliated
2-7 transmission and distribution utility's certificated service area
2-8 before the onset of customer choice is committed to be served by
2-9 nonaffiliated retail electric providers; and
2-10 (B) there are viable and effective competitive
2-11 alternatives for the residential customers who have not chosen to
2-12 be served by a nonaffiliated retail electric provider; or
2-13 (2) for service to small commercial customers:
2-14 (A) 40 percent or more of the electric power
2-15 consumed by small commercial customers within the affiliated
2-16 transmission and distribution utility's certificated service area
2-17 before the onset of customer choice is committed to be served by
2-18 nonaffiliated retail electric providers; and
2-19 (B) there are viable and effective competitive
2-20 alternatives for the small commercial customers who have not chosen
2-21 to be served by a nonaffiliated retail electric provider.
2-22 (e) The affiliated retail electric provider may not charge
2-23 rates for residential or small commercial customers that are lower
2-24 than [different from] the price to beat until the earlier of 36
2-25 months after the date customer choice is introduced or:
2-26 (1) for service to residential customers, the date the
2-27 commission determines that 40 percent or more of the electric power
3-1 consumed by residential customers within the affiliated
3-2 transmission and distribution utility's certificated service area
3-3 before the onset of customer choice is committed to be served by
3-4 nonaffiliated retail electric providers; or
3-5 (2) for service to small commercial customers, the
3-6 date the commission determines that 40 percent or more of the
3-7 electric power consumed by small commercial customers within the
3-8 affiliated transmission and distribution utility's certificated
3-9 service area before the onset of customer choice is committed to be
3-10 served by nonaffiliated retail electric providers.
3-11 (f) Notwithstanding Subsection (e), the affiliated retail
3-12 electric provider may charge rates that are lower than [different
3-13 from] the price to beat for service to aggregated loads of
3-14 nonresidential customers having an aggregated peak demand greater
3-15 than 1,000 kilowatts, provided that all affected customers are:
3-16 (1) commonly owned; or
3-17 (2) franchisees of the same franchisor.
3-18 (n) Notwithstanding Subsection (a), in a power region
3-19 outside of ERCOT, if customer choice is introduced before the
3-20 requirements of Section 39.152(a) are met, an affiliated retail
3-21 electric provider shall continue to offer the price to beat to
3-22 residential and small commercial customers, unless the price is
3-23 changed by the commission in accordance with this chapter, until
3-24 the later of:
3-25 (1) 60 months after the date customer choice is
3-26 introduced;
3-27 (2) the date [or] the requirements of Section
4-1 39.152(a) are met; or
4-2 (3) the date the commission determines that:
4-3 (A) for service to residential customers:
4-4 (i) 40 percent or more of the electric
4-5 power consumed by residential customers within the affiliated
4-6 transmission and distribution utility's certificated service area
4-7 before the onset of customer choice is committed to be served by
4-8 nonaffiliated retail electric providers; and
4-9 (ii) there are viable and effective
4-10 competitive alternatives for the residential customers who have not
4-11 chosen to be served by a nonaffiliated retail electric provider; or
4-12 (B) for service to small commercial customers:
4-13 (i) 40 percent or more of the electric
4-14 power consumed by small commercial customers within the affiliated
4-15 transmission and distribution utility's certificated service area
4-16 before the onset of customer choice is committed to be served by
4-17 nonaffiliated retail electric providers; and
4-18 (ii) there are viable and effective
4-19 competitive alternatives for the small commercial customers who
4-20 have not chosen to be served by a nonaffiliated retail electric
4-21 provider.
4-22 SECTION 2. This Act takes effect September 1, 2001.