By: Ritter, Hamilton, Deshotel, Otto, H.B. No. 2818
      McReynolds
 
A BILL TO BE ENTITLED
AN ACT
relating to the delay of retail electric competition in the areas of
the state covered by the Southeastern Electric Reliability Council
and to the recovery of certain transmission costs by electric
utilities in those areas.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 36.209(a), Utilities Code, is amended to
read as follows:
       (a)  This section applies only to an electric utility that
operates solely outside of ERCOT in areas of this state included in
the Southeastern Electric Reliability Council, the Southwest Power
Pool, or the Western Electricity Coordinating Council and that owns
or operates transmission facilities.
       SECTION 2.  Subchapter J, Chapter 39, Utilities Code, is
amended by adding Section 39.4515 to read as follows:
       Sec. 39.4515.  DELAY OF RETAIL COMPETITION.  (a)  
Notwithstanding any other provision of this chapter, the commission
may not implement or consider the implementation of retail electric
competition in an area in the Southeastern Electric Reliability
Council that is not currently engaged in retail electric
competition unless a law enacted after the effective date of this
section requires that action.
       (b)  Notwithstanding any other provision of this chapter, an
area included in the Southeastern Electric Reliability Council must
remain in the Southeastern Electric Reliability Council.
       (c)  This section prevails over any other provision of this
subchapter to the extent of any conflict.
       SECTION 3.  (a)  Not later than the 180th day after the
effective date of this Act, an electric utility operating in the
Southeastern Electric Reliability Council that is subject to
traditional cost of service rate regulation and on the effective
date of this Act has a transition to competition plan on file with
the Public Utility Commission of Texas shall:
             (1)  withdraw the plan from the commission;
             (2)  cease all activities related to the plan; and
             (3)  file with the commission an application for
recovery of any costs incurred as a result of the preparation,
filing, and implementation of the plan.
       (b)  An electric utility described by Subsection (a) of this
section is entitled to recover the costs described by Subsection
(a)(3) of this section.
       SECTION 4.  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, 2007.