| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
|
|
relating to the availability of baseload generation at a price |
|
|
reflective of its cost in this state's competitive wholesale |
|
|
market. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
|
|
amended by adding Section 39.1531 to read as follows: |
|
|
Sec. 39.1531. SALES PRICE BY CERTAIN GENERATORS. (a) Each |
|
|
generator described by Subsection (b) must sell 15 percent of its |
|
|
total energy sales from its coal, lignite, and nuclear capacity for |
|
|
each period described by Subsection (c) to retail electric |
|
|
providers at a price equal to the average variable cost of its coal, |
|
|
lignite, and nuclear-fueled resources plus 10 percent. |
|
|
(b) The requirement described by Subsection (a) applies to |
|
|
each generator that owns coal, lignite, or nuclear generating |
|
|
capacity and that was at any time owned by an entity affiliated with |
|
|
a formerly regulated investor-owned utility. The requirement does |
|
|
not apply to municipal utilities, electric cooperatives, or river |
|
|
authorities. |
|
|
(c) At the end of each quarterly period, generators to which |
|
|
this section applies must submit to the commission a report |
|
|
detailing the quantity, price, and buyer of the energy sold under |
|
|
this section for the quarterly period. The commission shall make |
|
|
this information publicly available. If, based on this report, the |
|
|
commission staff or any party believes that the required amount of |
|
|
capacity was not sold at the required price, the commission staff or |
|
|
any party may seek a commission hearing to determine the |
|
|
generator's compliance with this section. If the commission |
|
|
determines that a generator did not sell the required quantity of |
|
|
generation at the required price, the commission may: |
|
|
(1) initiate an enforcement proceeding against the |
|
|
generator; or |
|
|
(2) require the generator to conduct capacity auctions |
|
|
to ensure that the required quantity of coal-fired, lignite-fired, |
|
|
or nuclear-fueled generation is available to the market. |
|
|
(d) The requirement described by Subsection (a) does not |
|
|
apply if the market price for energy is less than the average |
|
|
variable cost of energy produced by a generator's coal, lignite, |
|
|
and nuclear units plus 10 percent. Any generator claiming |
|
|
exemption from the requirement for a particular quarterly period or |
|
|
portion of a quarterly period must substantiate its qualification |
|
|
for the exemption in its regular quarterly filing. |
|
|
(e) It is a violation of this section for an entity subject |
|
|
to this section to adjust its prices or offers of its remaining |
|
|
capacity or energy to negate the effect of this section's |
|
|
requirement. |
|
|
(f) The commission shall adopt rules to implement this |
|
|
section. |
|
|
SECTION 2. (a) The Public Utility Commission of Texas |
|
|
shall adopt rules implementing Section 39.1531, Utilities Code, as |
|
|
added by this Act, not later than December 1, 2007. |
|
|
(b) The quarterly report required under Subsection (c), |
|
|
Section 39.1531, Utilities Code, as added by this Act, must be |
|
|
submitted to the Public Utility Commission of Texas by a date |
|
|
determined by the commission by rule. The first quarterly report |
|
|
must be submitted for the quarterly period ending March 31, 2008. |
|
|
SECTION 3. 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. |