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A BILL TO BE ENTITLED
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AN ACT
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relating to mergers and acquisitions in the electric industry. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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amended by adding Section 39.159 to read as follows: |
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Sec. 39.159. Mergers of Power Generation Companies and |
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Retail Electric Providers. |
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(a) An owner of electric generation facilities that offers |
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electricity for sale in the state and proposes to merge, |
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consolidate, or otherwise become affiliated with a retail electric |
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provider that offers electricity for sale to retail customers in |
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this state shall obtain the approval of the commission before |
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closing, if the owner of the electric generation facilities owns or |
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controls more than ten percent (10%) of the electricity generated |
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in an ERCOT zone. |
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(b) Upon the filing of an application with the commission, |
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the commission shall investigate the transaction to determine |
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whether the action is consistent with the public interest. In |
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reaching its determination, the commission shall consider whether |
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the transaction will: |
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(1) adversely affect the health or safety of customers |
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or employees; |
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(2) result in the transfer of jobs of citizens of this |
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state to workers domiciled outside the state; |
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(3) result in the decline of service; |
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(4) result in the potential for impairment of |
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competition, cross-subsidization, customer confusion or any |
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preferential advantage, access or treatment for either the power |
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generation company, the retail electric provider or the combination |
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thereof; or |
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(5) otherwise be adverse to the public interest. |
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(c) If the commission finds that the transaction as proposed |
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would not be in the public interest, the commission may reject the |
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transaction or may condition approval of the transaction on such |
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conditions as the commission may deem reasonable and necessary to |
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protect the public interest. |
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(d) Nothing in this chapter shall be construed to confer |
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immunity from state or federal antitrust laws. This chapter is |
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intended to complement other state and federal antitrust |
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provisions. Therefore, antitrust remedies may also be sought in |
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state or federal court to remedy anticompetitive activities. |
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(e) The commission has the authority to adopt such rules as |
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may be necessary to implement this section. |
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(f) This section shall apply to any merger, consolidation or |
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affiliation proposed after January 1, 2009. No such merger, |
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consolidation or affiliation shall be effective until approved by |
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the commission at least 120 days after the effective date of this |
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act. |
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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 votes necessary for immediate effect, this |
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Act takes effect September 1, 2009. |