2007S0355-1 02/13/07
  By: Lucio S.B. No. 1401
relating to energy aggregation by political subdivisions.
       SECTION 1.  Subsection (d), Section 304.001, Local
Government Code, is amended to read as follows:
       (d)  A political subdivision corporation may negotiate on
behalf of its incorporating political subdivisions and the citizens
of member political subdivisions that create citizen 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 in the public facilities or by citizens of the
political subdivision or subdivisions represented by the political
subdivision corporation.  In 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),
(d), (e), and (f) to read as follows:
       (a)  A political subdivision aggregator may negotiate for
the purchase of electricity and energy services, contract for the
purchase of electricity, purchase electricity, and take any other
action necessary to purchase electricity 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)  The governing body of a political subdivision with a
population of less than 50,000 that is a member of a political
subdivision corporation as of September 1, 2007, may adopt an
ordinance or resolution providing for the automatic enrollment in
aggregation services of citizens of the political subdivision and
providing for the enrollment, upon request, of citizens of
unincorporated areas residing within 20 miles of the geographic
boundaries of the political subdivision.  If the governing body of
the political subdivision provides for automatic enrollment of the
citizens in aggregation services, the political subdivision shall
send to each citizen by mail 60 days' written notice that citizens
will be automatically enrolled unless a citizen expressly requests
not to be enrolled.  Citizens residing in unincorporated areas
eligible for aggregation services must affirmatively request to be
included in the aggregation services offered by the political
subdivision aggregator.
       (d)  Each retail electric provider and the transmission and
distribution utility shall provide to a political subdivision any
information the political subdivision 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
political subdivision.  The retail electric provider or the utility
may not require the consent of a customer as a condition of
providing information to a political subdivision under this
subsection.  The political subdivision may provide to a third party
or an aggregator information received under this subsection, but
only for the purpose of bidding on, implementing, or administering
the aggregation program.
       (e)  This section is not intended to abrogate an electric
service contract between a citizen of any political subdivision and
a competitive retail electric provider.  The initial customer base
for a citizen aggregation program shall only consist of individuals
who remained on price to beat rates as of December 31, 2006, and who
continue to receive service from an affiliated retail electric
provider on the date that an ordinance or resolution creating the
citizen aggregation program is passed.  Citizens who receive power
from competitive retail electric providers as of the date the
ordinance or resolution passes may not join the citizen aggregation
program until the expiration of their contract with the competitive
retail electric provider.
       (f)  Any savings attributable to the aggregation program
shall accrue to citizen participants, except that the political
subdivision 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.