80R14608 PAM-F
 
  By: Keffer H.B. No. 3498
 
Substitute the following for H.B. No. 3498:
 
  By:  Menendez C.S.H.B. No. 3498
 
A BILL TO BE ENTITLED
AN ACT
relating to energy aggregation by political subdivisions.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 304.001, Local Government Code, is
amended by amending Subsection (d) and adding Subsection (d-1) to
read as follows:
       (d)  A political subdivision corporation may negotiate on
behalf of its incorporating political subdivisions and the citizens
of municipalities that are member political subdivisions that
create aggregation programs under Section 304.002 for the purchase
of electricity, make contracts for the purchase of electricity,
purchase electricity, and take any other action necessary to
purchase electricity for use:
             (1)  in the public facilities of the political
subdivision or subdivisions represented by the political
subdivision corporation; or
             (2)  by citizens of municipalities that are member
political subdivisions that create aggregation programs under
Section 304.002.
       (d-1)  In Subsection (d) [this subsection], "electricity" 
means electric energy, capacity, energy services, ancillary
services, or other electric services for retail or wholesale
consumption by the political subdivisions.
       SECTION 2.  Section 304.002, Local Government Code, is
amended by amending Subsection (a) and adding Subsections (b-1),
(b-2), (b-3), (d), (e), and (f) to read as follows:
       (a)  A political subdivision aggregator may negotiate for
the purchase of, contract for the purchase of, purchase, and take
any other action necessary to purchase electricity and energy
services on behalf of the citizens of the political subdivision or
subdivisions.  [The citizens must affirmatively request to be
included in the aggregation services by the political subdivision
aggregator.]
       (b-1)  After a public hearing for which notice as provided by
law is given, the governing body of a municipality with a population
of less than 50,000 located in a county with a population of less
than 200,000 may adopt an ordinance or resolution providing for:
             (1)  automatic enrollment of the citizens of the
municipality in aggregation services provided under this section;
and
             (2)  enrollment on request of citizens who reside in
the unincorporated area located within 20 miles of the geographic
boundaries of the municipality.
       (b-2)  A municipality that adopts an ordinance or resolution
under Subsection (b-1) shall order an election on the question of
whether citizens of the municipality will be automatically enrolled
in aggregation services. Automatic enrollment of citizens of a
municipality in aggregation services may not be implemented by the
municipality under this section unless:
             (1)  approved by a majority of the voters of the
municipality voting in an election held for that purpose; and
             (2)  notice is provided as required by Subsection
(b-3).
       (b-3)  If automatic enrollment of the citizens is approved at
an election held under Subsection (b-2), the municipality shall
provide written notice to each citizen not later than the 60th day
before the date the automatic enrollment will take effect.  The
notice must be mailed to each citizen and state that the citizen
will be automatically enrolled unless the citizen expressly
requests to be excluded from enrollment.  A citizen who resides in
an unincorporated area described by Subsection (b-1)(2) must
affirmatively request the municipality to include the citizen in
the aggregation services offered by the political subdivision
aggregator.
       (d)  Each retail electric provider and transmission and
distribution utility shall provide to a municipality any
information the municipality considers necessary to solicit or
administer an aggregation program under this section, including the
name, address, electric service identifier, and monthly usage of
each residential customer who resides in the municipality.  The
provider or utility may not require the consent of a customer as a
condition of providing information to a municipality under this
subsection.  The municipality may provide to a third party or an
aggregator any information received under this subsection only if
the information is provided in relation to submitting a bid on,
implementing, or administering an aggregation program under this
section.
       (e)  This section is not intended to abrogate an electric
service contract between a citizen of any municipality and a
competitive retail electric provider.  The initial customer base
for an aggregation program consists only of customers who remained
on price to beat rates established under Section 39.202, Utilities
Code, as of December 31, 2006, and who continue to receive service
from an affiliated retail electric provider on the date an
ordinance or resolution creating the citizen aggregation program is
passed.  A citizen who receives power from a competitive retail
electric provider as of the date an ordinance or resolution passes
may not join an aggregation program under this section until the
citizen's contract with the competitive retail electric provider
expires.
       (f)  Any savings attributable to an aggregation program
under this section accrues to the citizen participants, except that
a municipality may recover its actual administrative costs.
       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.