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A BILL TO BE ENTITLED
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AN ACT
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relating to rates charged by an electric utility or retail electric |
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provider on acquisition by another electric utility or retail |
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electric provider. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 39, Utilities Code, is |
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amended by adding Section 39.110 to read as follows: |
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Sec. 39.110. RATES OF RETAIL ELECTRIC PROVIDER ON |
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ACQUISITION BY ANOTHER RETAIL ELECTRIC PROVIDER. A retail electric |
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provider that acquires another retail electric provider shall: |
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(1) in relation to a customer of the acquired retail |
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electric provider who received service under a term contract, |
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continue to charge the customer the rates specified in the contract |
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for the remaining term of the contract; and |
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(2) in relation to a customer of the acquired retail |
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electric provider who did not receive service under a term |
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contract: |
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(A) continue, for at least 90 days, to charge |
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that customer the rates charged by the acquired retail electric |
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provider at the time of acquisition if the rates of the acquired |
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retail electric provider at the time of acquisition are lower than |
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the rates charged by the acquiring retail electric provider; or |
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(B) extend the rates of the acquiring retail |
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electric provider to that customer if the rates charged by the |
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acquiring retail electric provider at the time of acquisition are |
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lower than the rates charged by the acquired retail electric |
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provider. |
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SECTION 2. Section 39.915, Utilities Code, is amended by |
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amending Subsection (b) and adding Subsection (b-1) to read as |
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follows: |
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(b) The commission shall approve a transaction under |
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Subsection (a) if the commission finds that the transaction is in |
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the public interest. For a transaction involving the acquisition of |
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one electric utility by another electric utility, the commission |
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may find the transaction to be in the public interest only if the |
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acquiring utility: |
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(1) in relation to a customer of the acquired utility |
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who received services under a term contract, agrees to continue to |
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charge the customer the rates specified in the contract for the |
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remaining term of the contract; and |
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(2) in relation to a customer of the acquired utility |
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who did not receive service under a term contract, agrees to: |
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(A) continue, for at least 90 days, to charge |
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that customer the rates charged by the acquired utility at the time |
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of acquisition if the rates of the acquired utility at the time of |
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acquisition are lower than the rates charged by the acquiring |
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utility; or |
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(B) extend the rates of the acquiring utility to |
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that customer if the rates charged by the acquiring utility at the |
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time of acquisition are lower than the rates charged by the acquired |
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utility. |
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(b-1) In making its determination of whether a transaction |
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is in the public interest, the commission shall consider whether |
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the transaction will adversely affect the reliability of service, |
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availability of service, or cost of service of the electric utility |
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or transmission and distribution utility. The commission shall |
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make the determination concerning a transaction under this |
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subsection not later than the 180th day after the date the |
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commission receives the relevant report. If the commission has not |
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made a determination before the 181st day after that date, the |
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transaction is considered approved. |
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SECTION 3. The changes in law made by Section 39.110, |
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Utilities Code, as added by this Act, apply only to a retail |
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electric provider acquired by another retail electric provider on |
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or after the effective date of this Act. A retail electric provider |
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acquired after the effective date of this Act is subject to the law |
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in effect on the date of acquisition, and that law is continued in |
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effect for that purpose. |
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SECTION 4. The changes in law made by this Act to Section |
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39.915, Utilities Code, apply only to a report submitted to the |
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Public Utility Commission of Texas on or after the effective date of |
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this Act. A report submitted to the Public Utility Commission of |
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Texas before the effective date of this Act is subject to the law in |
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effect on the date the report is submitted, and that law is |
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continued in effect for that purpose. |
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SECTION 5. This Act takes effect September 1, 2009. |