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A BILL TO BE ENTITLED
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AN ACT
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relating to a study of the provision of retail electric service and |
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the regulation of components of the electric utilities industry. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. (a) The Public Utility Commission of Texas shall |
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conduct a study of the conditions under which electric service is |
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provided to retail customers in this state. |
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(b) The state energy conservation office shall assist the |
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commission as requested. |
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(c) The study must examine: |
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(1) prices and reliability of retail electric service |
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in this state, including a comparison of prices and degrees of |
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reliability of service in: |
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(A) urban and rural areas of this state; |
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(B) different geographic regions of this state; |
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and |
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(C) regulated and deregulated retail electric |
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service areas of this state; |
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(2) prices and degrees of reliability of retail |
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electric service in this state as compared to the prices and degrees |
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of reliability of service in other states with regulated, |
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deregulated, or mixed regulated and deregulated retail electric |
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service; and |
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(3) factors related to differences in prices and |
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degrees of reliability of retail electric service shown by |
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comparisons made under Subdivisions (1) and (2) of this subsection, |
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including: |
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(A) differences in the generation and |
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transmission of electric power among various urban, rural, |
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regulated, and deregulated areas, including: |
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(i) differences in the ages of generating |
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and transmission facilities prevalent in the areas considered; |
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(ii) differences in the types of generation |
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and transmission technologies prevalent in the areas considered; |
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(iii) differences in fuel types used for |
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generation of electric power in the areas considered; and |
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(iv) other factors the commission considers |
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relevant, including economies of scale, power transmission |
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distances, rates of adoption of distributed generation |
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technologies and renewable energy technologies for electric power |
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generation, rates of adoption of demand response, load management, |
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and energy efficiency measures; and |
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(B) differences in the structure of retail |
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electric service markets among various urban, rural, regulated, and |
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deregulated areas. |
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SECTION 2. The Public Utility Commission of Texas, as part |
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of the study conducted under this Act, shall examine and compare the |
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history of retail electric service prices and degrees of |
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reliability in the following states: |
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(1) Arizona; |
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(2) Arkansas; |
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(3) California; |
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(4) Illinois; |
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(5) Montana; |
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(6) Nevada; |
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(7) New Mexico; |
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(8) Ohio; |
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(9) Oregon; |
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(10) Pennsylvania; |
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(11) Virginia; and |
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(12) any other state that has pursued retail electric |
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service restructuring to provide for customer choice but that |
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subsequently has significantly amended its laws on the subject. |
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SECTION 3. (a) The Public Utility Commission of Texas, |
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based on information collected and conclusions drawn from the study |
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conducted under Sections 1 and 2 of this Act, shall develop |
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alternative retail electric service market restructuring plans |
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under which retail electric service in this state or in certain |
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areas of this state may be made the most affordable and reliable. A |
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plan developed under this section must include specific legislative |
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or rulemaking proposals necessary or convenient to implement the |
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plan. |
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(b) A plan developed under Subsection (a) of this section |
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may provide for re-regulation of one or more components of the |
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retail electric service market in one or more areas of this state in |
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which customer choice has been implemented. |
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(c) The Public Utility Commission of Texas, based on |
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information collected and conclusions drawn from the study |
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conducted under Sections 1 and 2 of this Act, shall determine |
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whether retail electric service in those areas of this state in |
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which customer choice has not been implemented will likely be more |
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affordable and reliable if customer choice is delayed or not |
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implemented. The commission shall make recommendations for any |
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necessary legislative or rulemaking action the commission |
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determines would make retail electric service the most affordable |
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and reliable in those areas. |
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SECTION 4. (a) The Public Utility Commission of Texas shall |
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prepare a report on the information collected and conclusions drawn |
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as a result of the study conducted under Sections 1 and 2 of this Act |
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and the recommendations made under Section 3 of this Act as a result |
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of the study. |
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(b) The Public Utility Commission of Texas shall: |
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(1) present the report prepared under this section to: |
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(A) the governor; |
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(B) the lieutenant governor; |
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(C) the speaker of the house of representatives; |
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and |
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(D) each standing or interim committee of the |
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legislature that has jurisdiction over the commission or a |
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component of retail electric service provision in this state; and |
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(2) publish the report on the commission's Internet |
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website for public access. |
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SECTION 5. 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. |