78R11131 CBH-D


By:  King, Swinford, Baxter, et al.                               H.B. No. 2548

Substitute the following for H.B. No. 2548:                                   

By:  King                                                     C.S.H.B. No. 2548



A BILL TO BE ENTITLED

AN ACT

relating to electric transmission capacity.                                   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 35.004(d), Utilities Code, is amended to 
read as follows:
	(d)  The commission shall price wholesale transmission 
services within ERCOT based on the postage stamp method of pricing 
under which a transmission-owning utility's rate is based on the 
ERCOT utilities' combined annual costs of transmission divided by 
the total demand placed on the combined transmission systems of all 
such transmission-owning utilities within a power region.  An 
electric utility subject to the freeze period imposed by Section 
39.052 may treat transmission costs in excess of transmission 
revenues during the freeze period as an expense for purposes of 
determining annual costs in the annual report filed under Section 
39.257.  Notwithstanding Section 36.201, the commission may approve 
wholesale rates that may be periodically adjusted to ensure timely 
recovery of transmission investment.  Notwithstanding Section 
36.054, the commission may authorize incentives or the inclusion of 
construction work in progress in the rate base for transmission 
investment required by the commission under Section 39.203(e).
	SECTION 2.  Section 37.056(c), Utilities Code, is amended to 
read as follows:
	(c)  The commission shall grant each certificate on a 
nondiscriminatory basis after considering:
		(1)  the adequacy of existing service;                                        
		(2)  the need for additional service;                                         
		(3)  the effect of granting the certificate on the 
recipient of the certificate and any electric utility serving the 
proximate area; [and]
		(4)  other factors, such as:                                                  
			(A)  community values;                                                       
			(B)  recreational and park areas;                                            
			(C)  historical and aesthetic values;                                        
			(D)  environmental integrity; and                                            
			(E)  the probable improvement of service or 
lowering of cost to consumers in the area if the certificate is 
granted; and
		(5)  the ability of the electric utility to meet the 
goal for renewable capacity established by Section 39.904(a).
	SECTION 3.  Section 39.203(e), Utilities Code, is amended to 
read as follows:
	(e)  The commission may require an electric utility or a 
transmission and distribution utility to construct or enlarge 
facilities to ensure safe and reliable service for the state's 
electric markets and to reduce transmission constraints.  In any 
proceeding brought under Chapter 37, an electric utility or 
transmission and distribution utility ordered to construct or 
enlarge facilities under this subchapter need not prove that the 
construction ordered is necessary for the service, accommodation, 
convenience, or safety of the public and need not address the 
factors listed in Sections 37.056(c)(1)-(3) and (4)(E).
	SECTION 4.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.