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A BILL TO BE ENTITLED
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AN ACT
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relating to the authority of the Public Utility Commission of Texas |
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to order restitution for violations. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.003, Utilities Code, is amended to |
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read as follows: |
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Sec. 39.003. CONTESTED CASES. Unless specifically provided |
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otherwise, each commission proceeding under this chapter, other |
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than a rulemaking proceeding, report, notification, or |
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registration, shall be conducted as a contested case and the burden |
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of proof is on the incumbent electric utility. Any affected party |
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may file a case for restitution under Section 39.157(a). In any |
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proceeding involving market power abuse, any affected party shall |
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be granted the right to intervene. |
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SECTION 2. Subsection (a), Section 39.157, Utilities Code, |
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is amended to read as follows: |
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(a) The commission shall monitor market power associated |
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with the generation, transmission, distribution, and sale of |
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electricity in this state. On a finding that market power abuses or |
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other violations of this section have occurred or are occurring, |
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the commission shall require reasonable mitigation of the market |
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power by any combination of the following actions: ordering the |
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construction of additional transmission or distribution |
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facilities, [by] seeking an injunction or civil penalties as |
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necessary to eliminate or to remedy the market power abuse or |
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violation as authorized by Chapter 15, [by] imposing an |
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administrative penalty as authorized by Chapter 15, ordering |
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restitution to those parties affected by the market power abuse, or |
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[by] suspending, revoking, or amending a certificate or |
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registration as authorized by Section 39.356. Section 15.024(c) |
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does not apply to an administrative penalty imposed under this |
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section. For purposes of this subchapter, market power abuses are |
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practices by persons possessing market power that are unreasonably |
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discriminatory or tend to unreasonably restrict, impair, or reduce |
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the level of competition, including practices that tie unregulated |
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products or services to regulated products or services or |
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unreasonably discriminate in the provision of regulated services. |
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For purposes of this section, "market power abuses" include |
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predatory pricing, withholding of production, precluding entry, |
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and collusion. A violation of the code of conduct provided by |
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Subsection (d) that materially impairs the ability of a person to |
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compete in a competitive market shall be deemed to be an abuse of |
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market power. The possession of a high market share in a market |
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open to competition may not, of itself, be deemed to be an abuse of |
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market power; however, this sentence shall not affect the |
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application of state and federal antitrust laws. |
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SECTION 3. The changes in law made by this Act apply only to |
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a violation that occurs or continues to occur on or after the |
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effective date of this Act. A violation that occurred before the |
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effective date of this Act is covered by the law in effect at the |
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time the violation occurred, and the former law is continued in |
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effect for that purpose. |
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SECTION 4. 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. |