78R7028 CBH-F
By: Ratliff S.B. No. 1437
A BILL TO BE ENTITLED
AN ACT
relating to delay in the deregulation of certain electric
utilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 39, Utilities Code, is amended by adding
Subchapter J to read as follows:
SUBCHAPTER J. DELAY OF COMPETITION IN CERTAIN NON-ERCOT AREAS
Sec. 39.451. APPLICABILITY. (a) This subchapter applies
to an investor-owned electric utility:
(1) that is operating solely outside of ERCOT in areas
of this state that were included in the Southwest Power Pool on
January 1, 2002;
(2) that was not affiliated with the Southeastern
Electric Reliability Council on January 1, 2002; and
(3) to which Subchapter I does not apply.
(b) The legislature finds that circumstances exist that
require that areas served by an electric utility described by
Subsection (a) be treated as areas in which it is not in the public
interest to transition to full retail customer choice at this time.
Sec. 39.452. REGULATION OF UTILITY AND TRANSITION TO
COMPETITION. (a) Until the later of January 1, 2007, or the date on
which an electric utility subject to this subchapter is authorized
by the commission to implement customer choice, the rates of the
electric utility shall be regulated under traditional cost of
service regulation and the electric utility is subject to all
applicable regulatory authority prescribed by this subtitle and
Subtitle A, including Chapters 14, 32, 33, 36, and 37. Until the
date on which an electric utility subject to this subchapter
implements customer choice, the provisions of this chapter do not
apply to that electric utility, other than this subchapter,
Sections 39.904 and 39.905, and the provisions relating to the duty
to obtain a permit from the Texas Commission on Environmental
Quality for an electric generating facility and to reduce emissions
from an electric generating facility.
(b) On or after January 1, 2007, an electric utility subject
to this subchapter may choose to participate in customer choice. An
electric utility that chooses to participate in customer choice
shall file a transition to competition plan with the commission.
The transition to competition plan must identify how electric
utilities subject to this subchapter intend to achieve full
customer choice, including an evaluation of the transmission
facilities, an explanation of how certification of the power region
under Section 39.152 will be achieved, auctioning rights to
generation capacity, or any other measure that is consistent with
the public interest. The utility must also include in the
transition to competition plan a provision to establish a price to
beat for residential customers and commercial customers having a
peak load of 1,000 kilowatts or less. The commission may prescribe
additional information or provisions that must be included in the
plan. The commission shall approve, modify, or reject a plan within
180 days after the date of a filing under this section unless a
hearing is requested by any party to the proceeding. If a hearing is
requested, the 180-day deadline will be extended one day for each
day of the hearing. The transition to competition plan may be
updated or amended, subject to commission approval, until the
applicable power region is certified as a qualifying power region
under Section 39.152 and the plan is approved.
(c) On implementation of customer choice, an electric
utility subject to this subchapter is subject to the provisions of
this subtitle and Subtitle A to the same extent as other electric
utilities, including the provisions of Chapter 37 concerning
certificates of convenience and necessity.
Sec. 39.453. CUSTOMER CHOICE AND RELEVANT MARKET AND
RELATED MATTERS. If an electric utility subject to this subchapter
chooses on or after January 1, 2007, to participate in customer
choice, the commission may not authorize customer choice until the
applicable power region has been certified as a qualifying power
region under Section 39.152.
SECTION 2. This Act takes effect September 1, 2003.