Amend SB 743 on third reading by adding the following new 
appropriately numbered SECTION and renumbering the remaining 
SECTIONS:
	SECTION      . Subsection (c), Section 39.051, Utilities Code, 
is amended as follows:
	(c)  An electric utility may accomplish the separation 
required by Subsection (b) either through the creation of separate 
nonaffiliated companies or separate affiliated companies owned by a 
common holding company or through the sale of assets to a third 
party.  An electric utility may create separate transmission and 
distribution utilities.  Notwithstanding any other provision of 
this Chapter, an electric utility that does not have stranded costs 
described by Section 39.254 and that on September 1, 2005 has not 
finalized unbundling pursuant to a commission order approving an 
unbundling plan may also meet the requirements of Subsection (b) 
for generation facilities existing on September 1, 2005 in the 
Electric Reliability Council of Texas if it meets and maintains 
compliance with the following requirements:
		(1)  the electric utility has no more than 400 megawatts 
of Texas jurisdictional capacity from generating units within the 
Electric Reliability Council of Texas that have not been mothballed 
or retired;
		(2)  the electric utility has a contract or contracts 
with separate nonaffiliated companies or separate affiliated 
companies for the sale of all of the output from its generating 
units that have not been mothballed or retired with a contract term 
that is no shorter than twenty years or the life of the generating 
units, whichever is shorter; and
		(3)  the electric utility has a separate division within 
the electric utility for its generation business activities.
	(c-1)  A separate division described by Subsection (c)(3) is 
subject to subsection (d) and, for the purposes of this Chapter, is 
considered a separate affiliated power generation company and a 
competitive affiliate.