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A BILL TO BE ENTITLED
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AN ACT
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relating to the delay of retail electric competition in the areas of |
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the state covered by the Southeastern Electric Reliability Council |
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and to the recovery of certain transmission costs by electric |
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utilities in those areas and to the provision of power during a |
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natural disaster or declared emergency. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subsection (a), Section 36.209, Utilities Code, |
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is amended to read as follows: |
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(a) This section applies only to an electric utility that |
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operates solely outside of ERCOT in areas of this state included in |
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the Southeastern Electric Reliability Council, the Southwest Power |
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Pool, or the Western Electricity Coordinating Council and that owns |
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or operates transmission facilities. |
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SECTION 2. Subchapter D, Chapter 38, Utilities Code, is |
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amended by adding Section 38.073 to read as follows: |
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Sec. 38.073. AUTHORITY OF COMMISSION DURING AN EMERGENCY. |
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(a) On a declaration of a natural disaster or other emergency by |
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the governor, the commission may require an electric utility, |
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municipally owned utility, electric cooperative, qualifying |
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facility, power generation company, exempt wholesale generator, or |
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power marketer to sell electricity to an electric utility, |
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municipally owned utility, or electric cooperative that is unable |
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to supply power to meet customer demand due to the natural disaster |
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or other emergency. Any plant, property, equipment, or other items |
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used to receive or deliver electricity under this subsection are |
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used and useful in delivering service to the public, and the |
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commission shall allow timely recovery for the costs of those |
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items. The commission may order an electric utility, municipally |
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owned utility, or electric cooperative to provide interconnection |
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service to another electric utility, municipally owned utility, or |
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electric cooperative to facilitate a sale of electricity under this |
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section. If the commission does not order the sale of electricity |
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during a declared emergency as described by this subsection, the |
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commission shall promptly submit to the legislature a report |
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describing the reasons why the commission did not make that order. |
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(b) If an entity receives electricity under Subsection (a), |
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the receiving entity shall reimburse the supplying entity for the |
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actual cost of providing the electricity. The entity receiving the |
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electricity is responsible for any transmission and distribution |
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service charges specifically incurred in relation to providing the |
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electricity. |
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(c) An entity that pays for electricity received under |
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Subsection (b) and that is regulated by the commission may fully |
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recover the cost of the electricity in a timely manner by: |
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(1) including the cost in the entity's fuel cost under |
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Section 36.203; or |
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(2) notwithstanding Section 36.201, imposing a |
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different surcharge. |
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SECTION 3. Section 39.452, Utilities Code, is amended by |
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amending Subsection (b) and adding Subsection (i) to read as |
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follows: |
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(b) An electric [Notwithstanding Subsection (a), except for
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adjustments authorized by Sections 36.203, 39.454, 39.455, and
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39.456, and except for proceedings and cost recovery mechanisms
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authorized by Sections 39.458-39.463, a person may not file a
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proceeding to change, alter, or revoke any rate offered or charged
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by an electric utility subject to this subchapter before June 30,
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2007, with an effective date no earlier than June 30, 2008.
As part
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of a Subchapter C, Chapter 36, rate proceeding, the] utility |
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subject to this subchapter shall propose a competitive generation |
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tariff to allow eligible customers the ability to contract for |
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competitive generation. The commission shall approve, reject, or |
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modify the proposed tariff not later than September 1, 2010. The |
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tariffs subject to this subsection may not be considered to offer a |
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discounted rate or rates under Section 36.007, and the utility's |
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rates shall be set, in the proceeding in which the tariff is |
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adopted, to recover any costs unrecovered as a result of the |
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implementation of the tariff. The commission shall ensure that a |
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competitive generation tariff shall not be implemented in a manner |
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that harms the sustainability or competitiveness of manufacturers |
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that choose not to take advantage of competitive generation. |
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Pursuant to the competitive generation tariff, an electric utility |
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subject to this subsection shall purchase competitive generation |
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service, selected by the customer, and provide the generation at |
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retail to the customer. An electric utility subject to this |
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subsection shall provide and price retail transmission service, |
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including necessary ancillary services, to retail customers who |
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choose to take advantage of the competitive generation tariff at a |
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rate that is unbundled from the utility's cost of service. Such |
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customers shall not be considered wholesale transmission |
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customers. Notwithstanding any other provision of this chapter, |
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the commission may not issue a decision relating to a competitive |
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generation tariff that is contrary to an applicable decision, rule, |
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or policy statement of a federal regulatory agency having |
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jurisdiction. |
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(i) Notwithstanding any other provision of this chapter, if |
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the commission has not approved the transition to competition plan |
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under this section before January 1, 2009, an electric utility |
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subject to this subchapter shall cease all activities relating to |
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the transition to competition under this section. The commission |
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may, on its own motion or the motion of any affected person, |
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initiate a proceeding under Section 39.152 to certify a power |
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region to which the utility belongs as a qualified power region when |
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the conditions supporting such a proceeding exist. The commission |
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may not approve a plan under Subsection (g) until the expiration of |
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four years from the time that the commission certifies a power |
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region under Subsection (f). If after the expiration of four years |
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from the time the commission certifies a power region under |
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Subsection (f), and after notice and a hearing, the commission |
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determines consistent with the study required by Section 5, S.B. |
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No. 1492, Acts of the 81st Legislature, Regular Session, 2009, that |
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the electric utility cannot comply with Section 38.073, it shall |
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consider approving a plan under Subsection (g). |
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SECTION 4. Not later than the 90th day after the effective |
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date of this Act, an electric utility operating in the Southeastern |
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Electric Reliability Council that is subject to traditional cost of |
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service rate regulation and on the effective date of this Act has a |
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transition to competition plan on file with the Public Utility |
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Commission of Texas shall: |
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(1) withdraw the plan from the commission; and |
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(2) cease all activities related to the plan. |
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SECTION 5. (a) Not later than November 1, 2009, the Public |
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Utility Commission of Texas shall conduct and complete a study to |
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evaluate: |
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(1) the locations in this state that are most likely to |
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experience a natural disaster or other emergency; |
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(2) the ability of each entity described by Subsection |
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(a), Section 38.073, Utilities Code, as added by this Act, to comply |
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with that section in the event of a natural disaster or other |
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emergency; and |
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(3) any steps an entity described by Subsection (a), |
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Section 38.073, Utilities Code, as added by this Act, should take to |
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prepare to comply with that section. |
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(b) An entity described by Subsection (a), Section 38.073, |
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Utilities Code, as added by this Act, shall comply with any order |
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issued by the Public Utility Commission of Texas under that |
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subsection while the study required by Subsection (a) of this |
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section is conducted. |
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(c) The Public Utility Commission of Texas shall prepare a |
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report based on the study conducted under Subsection (a) of this |
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section. The report must include any recommendations the |
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commission considers advisable in relation to the implementation of |
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and compliance with Section 38.073, Utilities Code, as added by |
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this Act. The commission may include the report in the report |
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required by Section 31.003, Utilities Code. |
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SECTION 6. 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. |