By: King, Swinford, Baxter, et al. H.B. No. 2548
(Senate Sponsor - Fraser)
(In the Senate - Received from the House May 12, 2003;
May 13, 2003, read first time and referred to Committee on Business
and Commerce; May 21, 2003, reported favorably by the following
vote: Yeas 9, Nays 0; May 21, 2003, sent to printer.)
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(a), if the commission determines that conditions warrant the
action, the commission may authorize 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
(F) to the extent applicable, the effect of
granting the certificate on the ability of this state to meet the
goal established by Section 39.904(a) of this title.
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 within
ERCOT in a cost-effective manner where the constraints are such
that they are not being resolved through Chapter 37 or the ERCOT
transmission planning process. 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.
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