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A BILL TO BE ENTITLED
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AN ACT
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relating to the formation and certification of a new municipally |
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owned electric utility. |
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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. FORMATION AND SPECIAL CERTIFICATION OF |
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MUNICIPALLY OWNED UTILITY. (a) Notwithstanding any other law, the |
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governing body of a municipality may acquire the infrastructure |
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necessary for the municipality to offer and provide retail electric |
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service and related services in the corporate limits and the |
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extraterritorial jurisdiction of the municipality, regardless of |
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whether the corporate limits or extraterritorial jurisdiction is in |
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an existing certificated service area of a holder of a certificate |
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of convenience and necessity issued under this chapter or is in an |
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area in which customer choice is available as provided by Chapter |
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39. |
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(b) To acquire the necessary infrastructure to offer and |
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provide electric service and related services, a municipality may |
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exercise the right of eminent domain and may secure the financing |
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necessary to acquire assets using any money available to the |
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municipality, including bonds supported by a pledge of ad valorem |
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taxes, sales and use taxes, or any other municipal revenue. |
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(c) Before or after a municipality acquires infrastructure |
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necessary to offer and provide retail electric service and related |
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services, the governing body of the municipality may apply to the |
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commission for a special certificate of convenience and necessity |
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for the municipality to provide retail electric service and related |
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services to customers residing in the corporate limits or |
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extraterritorial jurisdiction of the municipality. The |
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application may be supported by evidence related to the |
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infrastructure owned by the municipality or by a plan that |
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describes the manner in which the municipality will acquire |
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existing infrastructure. |
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(d) Notwithstanding Section 37.056, after notice and |
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hearing the commission shall grant the special certificate if the |
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municipality demonstrates that: |
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(1) the municipality can provide service with |
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infrastructure that: |
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(A) the municipality owns; or |
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(B) the municipality can acquire in accordance |
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with the plan presented with the application; and |
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(2) electric service provided by the municipality in |
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the municipality's corporate limits and extraterritorial |
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jurisdiction would be reliable and will serve the public |
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convenience and safety. |
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(e) Notwithstanding Sections 37.059 and 37.060, on issuing |
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a special certificate to a municipality under this section, the |
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commission shall revoke a certificate of convenience and necessity |
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held by any other certificate holder to the extent that the existing |
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certificate covers any part of the area for which the municipality |
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is granted a special certificate under this section. |
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(f) Except as provided by Section 39.002, Chapter 39 does |
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not apply to a municipally owned utility that receives a special |
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certificate under this section. |
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(g) The commission by rule shall provide standards and a |
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mechanism under which a municipality that receives a special |
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certificate under this section shall compensate the holder of a |
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certificate of convenience and necessity if any part of the |
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holder's certificate is revoked under Subsection (e) for losses |
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that result from the revocation. |
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SECTION 2. The Public Utility Commission of Texas shall |
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adopt rules as are necessary to begin accepting applications for |
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special certificates of convenience and necessity under Section |
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37.103, Utilities Code, as added by this Act, on or before January |
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1, 2010. |
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SECTION 3. This Act takes effect September 1, 2009. |