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A BILL TO BE ENTITLED
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AN ACT
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relating to the right of certain municipalities to offer electric |
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services within the service area of another certificate holder. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Chapter 37, Utilities Code, is |
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amended by adding Section 37.103 to read as follows: |
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Sec. 37.103. RIGHT OF CERTAIN MUNICIPALITIES TO OFFER |
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SERVICES IN THE SERVICE AREA OF ANOTHER CERTIFICATE HOLDER. (a) |
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This section applies only to a municipality that: |
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(1) is located outside of ERCOT; |
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(2) has a population of less than 10,000; and |
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(3) is located in an area that has historically |
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experienced serious and prolonged power outages caused by |
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hurricanes. |
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(b) Notwithstanding any other law, the governing body of a |
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municipality by ordinance may provide for the municipality to offer |
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retail electric service and related services in the corporate |
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limits and the extraterritorial jurisdiction of the municipality, |
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regardless of whether the corporate limits or extraterritorial |
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jurisdiction is in an existing certificated service area of a |
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holder of a certificate of convenience and necessity issued by the |
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state. |
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(c) The governing body of a municipality may adopt an |
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ordinance under Subsection (b) only if a majority of the |
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municipality's voters voting at an election held for that purpose |
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approve a proposition to authorize the governing body to provide |
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for the municipality to offer the services. |
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(d) On the approval of voters under Subsection (c), the |
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governing body of a municipality may apply to the commission for a |
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certificate of convenience and necessity to provide retail electric |
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service and related services to customers residing in the corporate |
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limits or extraterritorial jurisdiction of the municipality. |
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Notwithstanding Section 37.056, after notice and hearing the |
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commission shall grant the certificate if the municipality |
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demonstrates a likelihood that: |
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(1) the municipality can provide service at reasonable |
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prices; and |
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(2) reliability of service and responses to natural |
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disasters and other emergencies in the corporate limits or |
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extraterritorial jurisdiction of the municipality will improve if |
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the certificate is granted. |
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(e) Notwithstanding Section 37.059, on issuing a |
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certificate to a municipality under this section, the commission |
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shall revoke a certificate held by an existing certificate holder |
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to the extent of any overlap with an area included in the |
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certificate granted under this section. |
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(f) The commission by rule shall provide standards under |
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which a municipality offering retail electric service and related |
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services under this section shall compensate the holder of a |
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certificate if the certificate is revoked under Subsection (e) for |
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losses that result from the holder forfeiting or selling its |
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facilities. |
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(g) The commission may not require a municipality granted a |
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certificate of convenience and necessity under this subchapter to |
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purchase electricity from a retail electric provider, power |
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generation company, or exempt wholesale generator. |
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SECTION 2. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2009. |