Amend CSHB 3309 by adding the following appropriately 
numbered SECTIONS to the bill and renumbering the remaining 
SECTIONS of the bill accordingly:
	SECTION ____.  Subsection (a), Section 36.209, Utilities 
Code, is amended to read as follows:
	(a)  This section applies only to an electric utility that 
operates solely outside of ERCOT in areas of this state included in 
the Southeastern Electric Reliability Council, the Southwest Power 
Pool, or the Western Electricity Coordinating Council and that owns 
or operates transmission facilities.
	SECTION ____.  Section 39.452, Utilities Code, is amended by 
amending Subsection (b) and adding Subsection (i) to read as 
follows:
	(b)  [Notwithstanding Subsection (a), except for adjustments 
authorized by Sections 36.203, 39.454, 39.455, and 39.456, and 
except for proceedings and cost recovery mechanisms authorized by 
Sections 39.458-39.463, a person may not file a proceeding to 
change, alter, or revoke any rate offered or charged by an electric 
utility subject to this subchapter before June 30, 2007, with an 
effective date no earlier than June 30, 2008.  As part of a 
Subchapter C, Chapter 36, rate proceeding, the] An electric utility 
subject to this subchapter shall propose a competitive generation 
tariff to allow eligible customers the ability to contract for 
competitive generation.  The commission shall approve, reject, or 
modify the proposed tariff not later than September 1, 2010.  The 
tariffs subject to this subsection may not be considered to offer a 
discounted rate or rates under Section 36.007, and the utility's 
rates shall be set, in the proceeding in which the tariff is 
adopted, to recover any costs unrecovered as a result of the 
implementation of the tariff.  The commission shall ensure that a 
competitive generation tariff shall not be implemented in a manner 
that harms the sustainability or competitiveness of manufacturers 
that choose not to take advantage of competitive generation.  
Pursuant to the competitive generation tariff, an electric utility 
subject to this subsection shall purchase competitive generation 
service, selected by the customer, and provide the generation at 
retail to the customer.  An electric utility subject to this 
subsection shall provide and price retail transmission service, 
including necessary ancillary services, to retail customers who 
choose to take advantage of the competitive generation tariff at a 
rate that is unbundled from the utility's cost of service.  Such 
customers shall not be considered wholesale transmission 
customers.  Notwithstanding any other provision of this chapter, 
the commission may not issue a decision relating to a competitive 
generation tariff that is contrary to an applicable decision, rule, 
or policy statement of a federal regulatory agency having 
jurisdiction.
	(i)  Notwithstanding any other provision of this chapter, if 
the commission has not approved the transition to competition plan 
under this section before January 1, 2009, an electric utility 
subject to this subchapter shall cease all activities relating to 
the transition to competition under this section.  The commission 
may, on its own motion or the motion of any affected person, 
initiate a proceeding under Section 39.152 to certify a power 
region to which the utility belongs as a qualified power region when 
the conditions supporting such a proceeding exist.  The commission 
may not approve a plan under Subsection (g) until the expiration of 
four years from the time that the commission certifies a power 
region under Subsection (f).
	SECTION ____.  Not later than the 90th day after the 
effective date of this Act, an electric utility operating in the 
Southeastern Electric Reliability Council that is subject to 
traditional cost of service rate regulation and on the effective 
date of this Act has a transition to competition plan on file with 
the Public Utility Commission of Texas shall:
		(1)  withdraw the plan from the commission; and                               
		(2)  cease all activities related to the plan.