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2005S0530-1  03/09/05


By:  Fraser                                                       S.B. No. 1494


A BILL TO BE ENTITLED

AN ACT

relating to the unbundling of electric utilities in the transition 
to competitive retail electric markets in the Electric Reliability 
Council of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subsection (c), Section 39.051, Utilities Code, 
is amended to read 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.  An electric utility has also met the 
requirements of Subsection (b) for its generation business 
activities if it meets 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 separate division 
within the electric utility for its generation business activities; 
and
		(3)  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 20 years or the life of the generating 
units, whichever is shorter.
	SECTION 2.  This Act takes effect September 1, 2005.