79R4277 CBH-F

By:  Armbrister                                                   S.B. No. 759



A BILL TO BE ENTITLED

AN ACT

relating to energy aggregation by political subdivisions.                     
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 304.001(d), Local Government Code, is 
amended to read as follows:
	(d)  A political subdivision corporation may negotiate on 
behalf of its incorporating political subdivisions and the citizens 
of member political subdivisions who create citizen aggregation 
programs under Section 304.002 for the purchase of electricity, 
make contracts for the purchase of electricity, purchase 
electricity, and take any other action necessary to purchase 
electricity for use in the public facilities or by citizens of the 
political subdivision or subdivisions represented by the political 
subdivision corporation.  In this subsection, "electricity" means 
electric energy, capacity, energy services, ancillary services, or 
other electric services for retail or wholesale consumption by the 
political subdivisions.
	SECTION 2.  Section 304.002, Local Government Code, is 
amended by amending Subsection (a) and adding Subsections (b-1), 
(d), and (e) to read as follows:
	(a)  A political subdivision aggregator may negotiate for 
the purchase of electricity and energy services, contract for the 
purchase of electricity, purchase electricity, and take any other 
action necessary to purchase electricity on behalf of the citizens 
of the political subdivision or subdivisions[.  The citizens must 
affirmatively request to be included in the aggregation services by 
the political subdivision aggregator].
	(b-1)  The governing body of a political subdivision with a 
population of less than 40,000 may adopt an ordinance or resolution 
providing for automatic enrollment of citizens of the political 
subdivision in aggregation services.  If the governing body of the 
political subdivision provides for automatic enrollment of the 
citizens in aggregation services, the political subdivision shall 
send to each citizen by mail a written notice that citizens served 
by an affiliated retail electric provider will be automatically 
enrolled unless a citizen expressly requests to not be enrolled.
	(d)  An affiliated retail electric provider and the 
transmission and distribution utility shall provide to a political 
subdivision any information the political subdivision considers 
necessary to solicit or administer an aggregation program under 
this section, including the name, address, electric service 
identifier, and monthly usage of each residential customer who 
resides in the political subdivision.  The consent of a customer may 
not be required as a condition of providing information to a 
political subdivision under this subsection.  The political 
subdivision may provide to a third party or an aggregator 
information received under this subsection, but only for the 
purpose of bidding on, implementing, and administering the 
aggregation program.
	(e)  This section is not intended to abrogate an electric 
service contract between a citizen of any municipality and a 
competitive retail electric provider.
	SECTION 3.  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, 2005.