|
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. |