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A BILL TO BE ENTITLED
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AN ACT
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relating to the allocation of transmission rights to electricity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.1513 to read as follows: |
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Sec. 39.1513. NATIVE LOAD SERVICE OBLIGATION. (a) In this |
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section: |
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(1) "Distribution utility" means an electric utility |
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that has a service obligation to end-users or to a municipally owned |
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utility or electric cooperative that, directly or indirectly, |
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through one or more additional municipally owned utilities or |
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electric cooperatives, provides electric service to end-users. |
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(2) "Load-serving entity" means a distribution |
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utility, municipally owned utility, or electric cooperative that |
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has a service obligation. |
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(3) "Service obligation" means a requirement |
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applicable to, or the exercise of authority granted to, a |
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distribution utility, municipally owned utility, or electric |
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cooperative under law or under a long-term contract to provide |
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electric service to end-users or to a distribution utility. |
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(b) This section applies to a load-serving entity in ERCOT |
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that, on the date this section is enacted, owns generation |
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facilities or holds rights under one or more wholesale contracts to |
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purchase electric energy to meet a service obligation. |
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(c) A load-serving entity shall, to the extent required to |
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meet a service obligation, be allocated firm transmission rights or |
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equivalent tradable or financial transmission rights as necessary |
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to deliver the output or purchased energy or the output of other |
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generating facilities or purchased energy to the extent deliverable |
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using the rights. |
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(d) To the extent that all or part of the service obligation |
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covered by the firm transmission rights or equivalent tradable or |
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financial transmission rights is transferred to another |
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load-serving entity, the successor load-serving entity is entitled |
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to use the firm transmission rights or equivalent tradable or |
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financial transmission rights associated with the transferred |
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service obligation. If the service obligation is subsequently |
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transferred to another load-serving entity or back to the original |
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load-serving entity, the rights are transferred with the |
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obligation. |
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(e) The commission shall exercise its authority under this |
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subtitle in a manner that facilitates the planning and expansion of |
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transmission facilities to meet the reasonable needs of |
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load-serving entities to satisfy the service obligations of the |
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load-serving entities and that enables load-serving entities to |
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secure firm transmission rights or equivalent tradable or financial |
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rights on a long-term basis for long-term power supply arrangements |
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made or planned to meet those needs. |
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(f) The commission may exercise authority under this |
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subtitle to make transmission rights not used to meet an obligation |
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described by this section available to other entities in a manner |
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determined by the commission to be just, reasonable, and not unduly |
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discriminatory or preferential. |
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(g) An entity that, to the extent required to meet its |
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service obligations, exercises rights described by this section |
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may not be considered by that action as acting in a manner that is |
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unduly discriminatory or preferential under this subtitle. |
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SECTION 2. The Public Utility Commission of Texas shall |
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implement Section 39.1513, Utilities Code, as added by this Act, |
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not later than September 1, 2008. |
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SECTION 3. This Act takes effect September 1, 2007. |