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A BILL TO BE ENTITLED
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AN ACT
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relating to the mechanism by which prices are established in the |
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competitive wholesale electric energy and capacity markets in |
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Texas. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 35.002, Utilities Code, is amended to |
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read as follows: |
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Sec. 35.002. RIGHT TO COMPETE AT WHOLESALE. (a) A |
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provider of generation, including an electric utility affiliate, |
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exempt wholesale generator, and qualifying facility, may compete |
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for the business of selling power. |
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(b) The price paid to each seller in any wholesale market |
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for energy or capacity operated by an independent organization |
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certified under Section 39.151(c) shall not be established by the |
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highest-priced bid accepted by the independent organization in |
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order to meet the energy or capacity requirements of the market. |
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The legislature finds that a wholesale market in which all sellers |
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receive a price that is based upon the highest price accepted by the |
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independent organization is not in the public interest and is |
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harmful to the availability of just and reasonable electric rates |
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in the competitive areas of the state. |
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(c) The commission shall adopt rules establishing a |
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wholesale market consistent with this section. |
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SECTION 2. The Public Utility Commission of Texas shall |
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adopt rules establishing a wholesale market consistent with |
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Subsection (b), Section 35.002, Utilities Code, as added by this |
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Act, not later than July 1, 2008. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2007. |