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By:  Fraser                                                       S.B. No. 1280


A BILL TO BE ENTITLED

AN ACT

relating to the regulation of certain successors of electric 
cooperatives.  
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subdivision (9), Section 11.003, Utilities Code, 
is amended to read as follows:
		(9)  "Electric cooperative" means:                                            
			(A)  a corporation organized under Chapter 161 or 
a predecessor statute to Chapter 161 and operating under that 
chapter; or
			(B)  a corporation organized as an electric 
cooperative in a state other than Texas that has obtained a 
certificate of authority to conduct affairs in the State of Texas[; 
or
			[(C)  a successor to an electric cooperative 
created before June 1, 1999, in accordance with a conversion plan 
approved by a vote of the members of the electric cooperative, 
regardless of whether the successor later purchases, acquires, 
merges with, or consolidates with other electric cooperatives].
	SECTION 2.  Section 39.102, Utilities Code, is amended by 
adding Subsections (d) and (e) to read as follows:
	(d)  The commission shall oversee the compliance with this 
chapter by electric utilities that were not subject to this chapter 
before September 1, 2003, and in so doing shall establish schedules 
and procedures and require commission approvals as it deems 
necessary to achieve the objectives of this chapter.  This 
subsection does not apply to an electric utility to which 
Subsection (c) applies.
	(e)  In establishing a schedule under Subsection (d), the 
commission shall consider:
		(1)  the effect of customer choice on the reliability 
of service provided by the electric utility;
		(2)  whether the electric utility's service area is 
located in more than one power region;
		(3)  whether any applicable power region has been 
certified as a qualifying power region under Section 39.152(a);
		(4)  whether other electric utilities in the power 
region offer retail customer choice; and
		(5)  any other relevant factor.                                        
	SECTION 3.  Section 41.063, Utilities Code, is repealed.                       
	SECTION 4.  This Act takes effect September 1, 2003.