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A BILL TO BE ENTITLED
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AN ACT
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relating to the compensation of certain executive officers of |
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certain electric utilities and affiliated retail electric |
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providers. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 17, Utilities Code, is |
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amended by adding Section 17.010 to read as follows: |
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Sec. 17.010. LIMITATION ON COMPENSATION OF CERTAIN |
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EXECUTIVES OF CERTAIN UTILITIES AND AFFILIATED RETAIL ELECTRIC |
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PROVIDERS. (a) In this section, "compensation" includes: |
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(1) annual compensation, including salary and bonus |
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pay; |
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(2) other long-term compensation, awards, and |
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payouts; and |
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(3) personal use of company aircraft. |
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(b) An electric utility regulated under Chapter 36 or an |
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affiliated retail electric provider regulated under Chapter 39 may |
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not contract to provide compensation to its corporate executives in |
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an annual amount that exceeds the federal minimum wage for a |
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full-time employee if the utility or provider has a market share of |
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50 percent or greater of available retail customers and: |
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(1) the utility offers retail electric service at a |
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rate that exceeds 125 percent of the average national rate for |
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residential retail electric service; or |
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(2) the affiliated retail electric provider offers, to |
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a residential customer who has never switched the customer's retail |
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electric provider, retail electric service at a rate that exceeds |
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125 percent of the average national rate for residential electric |
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services. |
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(c) An electric utility or affiliated retail electric |
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provider that violates this section is subject to an administrative |
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penalty as provided by Chapter 15. Notwithstanding Section 15.023, |
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the commission may impose an administrative penalty in an amount |
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equal to the compensation paid in violation of this section. |
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(d) An administrative penalty collected under this section |
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shall be deposited to the credit of the system benefit fund and may |
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be appropriated only for the purposes of the commission's programs |
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under Sections 39.903(f)(2) and (h). |
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SECTION 2. Section 17.010, Utilities Code, as added by this |
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Act, applies only to a contract executed on or after September 1, |
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2007, and to compensation paid or provided under a contract |
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executed on or after September 1, 2007. |
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SECTION 3. This Act takes effect September 1, 2007. |