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By:  Armbrister                                                   S.B. No. 1383


A BILL TO BE ENTITLED

AN ACT

relating to metering services provided to certain electricity 
customers.    
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 39.107, Utilities Code, is amended by 
amending Subsections (a) and (b) and adding Subsection (h) to read 
as follows:
	(a)  On introduction of customer choice in a service area, 
metering services for the area shall continue to be provided by the 
transmission and distribution utility affiliate of the electric 
utility that was serving the area before the introduction of 
customer choice.  Metering services provided to large commercial 
and industrial customers shall begin to be provided on a 
competitive basis beginning on January 1, 2004.  The commission 
shall determine a schedule for making those services available.  In 
this subsection, the term "large commercial and industrial 
customer" includes any nonresidential customer with a peak demand 
greater than 200 kilowatts, as well as the aggregated loads of 
nonresidential customers having an aggregated peak demand greater 
than 200 kilowatts, provided that all affected customers are:
		(1)  commonly owned; or                                                
		(2)  franchisees of the same franchisor.                               
	(b)  Metering services provided to small commercial and 
residential customers shall continue to be provided by the 
transmission and distribution utility affiliate of the electric 
utility that was serving the area before the introduction of 
customer choice [until the later of September 1, 2005, or the date 
on which at least 40 percent of those residential customers are 
taking service from unaffiliated retail electric providers].  
Metering and billing services provided to residential customers 
shall be governed by the customer safeguards adopted by the 
commission under Section 39.101.  In this subsection, the term "
small commercial customer" means any nonresidential customer not 
defined in subsection (a).
	(h)  Competitive metering implementation expenses of the 
independent system operator and the transmission and distribution 
utility shall be paid through rates and shall be allocated to the 
customer classes receiving competitive metering services.
	SECTION 2.  This Act takes effect September 1, 2003.