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Amend CSSB 483 (House Committee Report) as follows:
(1) In SECTION 1 of the bill, added Section 39.152(a-1)(2), Utilities Code (page 2, line 4), strike "the commission has
approved the agreement" and substitute "the person has submitted
the agreement under Subdivision (1) to the commission for approval
and the agreement is approved as the person's market power
mitigation plan in accordance with Section 39.156(f) or (f-4)".
(2) In SECTION 2 of the bill, added Section 39.153(a-2)(2),
Utilities Code (page 3, line 1), strike "the commission has
approved the agreement" and substitute "the utility or company has
submitted the agreement under Subdivision (1) to the commission for
approval and the agreement is approved as the utility's or company's
market power mitigation plan in accordance with Section 39.156(f)
or (f-4)".
(3) In the recital to SECTION 3 of the bill (page 4, line
19), strike "(a) and (c)" and substitute "(a), (c), and (e)".
(4) In SECTION 3 of the bill, added Section 39.154(a-1)(2),
Utilities Code (page 5, line 4), strike "the commission has
approved the agreement" and substitute "the power generation
company has submitted the agreement under Subdivision (1) to the
commission for approval and the agreement is approved as the
company's market power mitigation plan in accordance with Section
39.156(f) or (f-4)".
(5) In SECTION 3 of the bill, in amended Section 39.154,
Utilities Code (page 5, between lines 12 and 13), insert the
following:
(e) In determining the percentage shares of installed
generation capacity owned, controlled, or owned and controlled in
any combination by a power generation company under this section
and Section 39.156, the commission shall, for purposes of
calculating the numerator, reduce the installed generation
capacity owned, controlled, or owned and controlled in any
combination by that power generation company by the installed
generation capacity from wind generation renewable energy
technologies built or acquired by [of any "grandfathered facility"
within an ozone nonattainment area as of September 1, 1999, for
which] that power generation company after January 1, 2006 [has
commenced complying or made a binding commitment to comply with
Section 39.264. This subsection applies only to a power generation
company that is affiliated with an electric utility that owned and
controlled more than 27 percent of the installed generation
capacity in the power region on January 1, 1999].
(6) In SECTION 5 of the bill (page 6, lines 2 and 3), strike
"Sections 39.156(a), (b), (f), and (g), Utilities Code, are
amended" and substitute "Section 39.156, Utilities Code, is amended
by amending Subsections (a), (b), (f), and (g) and adding
Subsections (f-1), (f-2), (f-3), and (f-4)".
(7) In SECTION 5 of the bill, strike added Section
39.156(a)(2), Utilities Code (page 6, lines 10 and 11), and
substitute the following:
(2) an agreement with the wholesale electric market
monitor to mitigate the potential for market power abuse.
(8) In SECTION 5 of the bill, in amended Section 39.156(b),
Utilities Code (page 6, lines 16 and 17), strike "utility's or
company's" and substitute "utility or company knew or should have
known that its".
(9) In SECTION 5 of the bill, in amended Section
39.156(b)(1), Utilities Code (page 6, line 19), between "mitigation
plan" and "with the", insert "described by Subsection (a)(1)".
(10) In SECTION 5 of the bill, in amended Section
39.156(b)(2), Utilities Code (page 6, lines 22 and 23), strike
"enter into an agreement to mitigate the potential for market power
abuse with the wholesale electric power monitor" and substitute
"file a market power mitigation plan described by Subsection (a)(2)
with the commission".
(11) In SECTION 5 of the bill, strike amended Section
39.156(f), Utilities Code (page 6, line 26 through page 7, line 5),
and substitute the following:
(f) The commission shall approve[, modify,] or reject a plan
within 90 [180] days after the date [of] a utility or company files
a plan [filing] under Subsection (b)(1) or (2) [(b)].
(f-1) In determining whether to approve or reject a plan
under Subsection (f), the commission shall give substantial
deference to a plan described by Subsection (a)(2), and may reject
that plan only if the commission finds by clear and convincing
evidence that the plan does not reduce the utility's or company's
ability to influence prices.
(f-2) If the commission rejects a plan under Subsection (f),
the commission shall issue an order that includes specific findings
identifying all changes to the plan that would be required for
commission approval, provided that the [The] commission may not
[modify a plan to] require divestiture or auction of generation
capacity by the electric utility or the power generation company if
the divestiture or auction was not included in the plan filed by the
utility or company.
(f-3) An electric utility or power generation company does
not violate this chapter if the utility or company operates in
accordance with a plan described by Subsection (a)(2) that is
subsequently rejected by the commission if the utility or company
ceases to operate in accordance with the plan not later than the
45th day after the date the commission issues an order rejecting the
plan.
(f-4) If the commission does not approve or reject a plan
within 90 days after the date the plan is filed with the commission,
the plan is considered to be approved.
(12) In SECTION 6 of the bill, in amended Section 39.157(a),
Utilities Code (page 8, line 8), between "disgorgement of" and
"revenues received" insert "excess".
(13) In SECTION 6 of the bill, in amended Section 39.157(a),
Utilities Code (page 8, line 10), between "capacity" and ", by
imposing" insert "if the person does not agree to a market power
mitigation plan under Section 39.156(b)".
(14) In SECTION 6 of the bill, in added Section 39.157(j),
Utilities Code (page 14, line 6), between "competitive affiliate"
and "may not" insert "and a utility".
(15) In SECTION 6 of the bill, in added Section 39.157(j),
Utilities Code (page 14, line 7), strike "utility's corporate" and
substitute "same".
(16) In SECTION 6 of the bill, in added Section 39.157(j),
Utilities Code (page 14, line 8), strike "utility's corporate" and
substitute "same".
(17) On page 16, lines 16 and 17, strike all of SECTION 9 and
substitute "SECTION 9. Section 39.153(b), Utilities Code, is
repealed."
(18) Add the following appropriately numbered SECTIONS to
read as follows:
SECTION ____. Chapter 31, Utilities Code, is amended by
adding Section 31.006 to read as follows:
Sec. 31.006. ELECTRIC ENERGY AND ENVIRONMENTAL IMPACT TASK
FORCE. (a) In this section, "task force" means the electric
energy and environmental impact task force.
(b) The task force shall meet quarterly to:
(1) study the state's long-term demand for electric
generation capacity and the infrastructure and technology
available and necessary for meeting that demand;
(2) study the environmental effects of existing and
proposed electric generating facilities;
(3) inventory all existing electric generating
facilities operating in this state; and
(4) review changes to state statutes, administrative
rules and regulations, judicial decisions, and executive branch
policies regarding electric energy generation.
(c) The task force is composed of:
(1) a member of the commission appointed by the
chairman of the commission;
(2) a member of the Texas Commission on Environmental
Quality appointed by the chairman of the Texas Commission on
Environmental Quality; and
(3) the president and chief executive officer of
ERCOT.
(d) The members of the task force shall elect a presiding
officer from among the members and shall adopt rules governing the
operation of the task force.
(e) All meetings of the task force shall be conducted in
accordance with Chapter 551, Government Code.
SECTION ____. Not later than October 1, 2007, the electric
energy and environmental impact task force established under
Section 31.006, Utilities Code, as added by this Act, shall conduct
an organizational meeting.
SECTION ____. Section 37.057, Utilities Code, is amended to
read as follows:
Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
FACILITY. (a) Except as provided by Section 37.0575, the [The]
commission must approve or deny an application for a certificate
for a new transmission facility not later than the first
anniversary of the date the application is filed. If the commission
does not approve or deny the application on or before that date, a
party may seek a writ of mandamus in a district court of Travis
County to compel the commission to decide on the application.
SECTION ____. Subchapter B, Chapter 37, Utilities Code, is
amended by adding Section 37.0575 to read as follows:
Sec. 37.0575. FACILITIES THAT ARE CRITICAL FOR RESOURCE
ADEQUACY. (a) The commission may designate certain transmission
facility projects as projects critical for resource adequacy if the
project seeks to connect to ERCOT electric generation facilities in
this state that were in operation on January 1, 2007. In
determining whether the commission should designate a project as a
project critical for resource adequacy, the commission shall
consider:
(1) the estimates of future electric reserve margins
published by the ERCOT independent system operator;
(2) the amount of electricity the proposed project
could potentially add to the reserve margins in ERCOT; and
(3) how quickly the proposed transmission facility
project can be constructed to add that electricity to the ERCOT
market.
(b) The commission must approve or deny an application for a
certificate of convenience and necessity for a transmission
facility project the commission designates as a project critical
for resource adequacy not later than the 180th day after the date a
complete application is filed unless good cause is shown for
extending that deadline. If the commission does not approve or deny
the application on or before that date, a party may seek a writ of
mandamus in a district court of Travis County to compel the
commission to decide on the application.
(c) This section expires September 1, 2009.
SECTION ____. (a) The legislature finds that:
(1) the "filed rate" doctrine is at odds with the
intent of the state legislature to restructure the electric
industry in this state;
(2) the "filed rate" doctrine in a private right of
action for a violation of Section 39.157, Utilities Code, or of
Sections 15.01 through 15.26, Business & Commerce Code, is
abolished; and
(3) the deregulated wholesale and retail markets in
ERCOT are the relevant markets for the purposes of determining
standing to sue and the existence of market power abuses under
Section 39.157, Utilities Code.
(b) Section 39.157, Utilities Code, is amended by amending
Subsection (a) and adding Subsection (a-1) to read as follows:
(a) To prevent market power abuses or other violations of
this section, the [The] commission shall monitor market power
associated with the generation, transmission, distribution, and
sale of electricity in this state. On a finding that market power
abuses or other violations of this section are occurring, the
commission shall require reasonable mitigation of the market power
by ordering the construction of additional transmission or
distribution facilities, by seeking an injunction or civil
penalties as necessary to eliminate or to remedy the market power
abuse or violation as authorized by Chapter 15, by imposing an
administrative penalty as authorized by Chapter 15, or by
suspending, revoking, or amending a certificate or registration as
authorized by Section 39.356. Section 15.024(c) does not apply to
an administrative penalty imposed under this section. For purposes
of this subchapter, market power abuses are practices by persons
possessing market power that are unreasonably discriminatory or
tend to unreasonably restrict, impair, or reduce the level of
competition, including practices that tie unregulated products or
services to regulated products or services or unreasonably
discriminate in the provision of regulated services. For purposes
of this section, "market power abuses" include predatory pricing,
withholding of production, precluding entry, and collusion. A
violation of the code of conduct provided by Subsection (d) that
materially impairs the ability of a person to compete in a
competitive market shall be deemed to be an abuse of market power.
The possession of a high market share in a market open to
competition may not, of itself, be deemed to be an abuse of market
power; however, this sentence shall not affect the application of
state and federal antitrust laws.
(a-1) Notwithstanding any other law, a qualifying person
may pursue a private right of action under Section 39.158(b) or
under Sections 15.01 through 15.26, Business & Commerce Code, based
on a violation of this section, for damages or for injunctive
relief, against a power generation company, a power marketer, a
retail electric provider, or any other supplier of wholesale or
retail electricity, other than a transmission and distribution
utility, operating in ERCOT. A qualifying person is not required to
bring an administrative action before pursuing a private right of
action. In this subsection, "qualifying person" means a retail
electric provider that meets the requirements for standing to sue
for market power abuses under Sections 15.01 through 15.26,
Business & Commerce Code.
(19) Renumber SECTIONS of the bill accordingly.