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A BILL TO BE ENTITLED
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AN ACT
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relating to certificates of convenience and necessity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 37.051, Utilities Code, is amended by |
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amending Subsection (a) and adding Subsections (d), (e), and (f) to |
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read as follows: |
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(a) An electric utility or other person may not directly or |
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indirectly provide service to the public under a franchise or |
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permit unless the utility or other person first obtains from the |
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commission a certificate that states that the public convenience |
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and necessity requires or will require the installation, operation, |
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or extension of the service. |
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(d) A certificate may be granted to an electric utility or |
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other person under this section for a facility used as part of the |
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transmission system serving the ERCOT power region solely for the |
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transmission of electricity. |
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(e) The commission may consider an application filed by a |
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person not currently certificated as an electric utility for a |
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certificate of convenience and necessity to construct transmission |
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capacity that serves the ERCOT power region. Before granting a |
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certificate under this section, the commission must find, after |
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notice and hearing, that: |
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(1) the applicant has the technical ability, financial |
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ability, and sufficient resources in this state to own, operate, |
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and maintain reliable transmission facilities; |
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(2) the applicant has the resources and ability to |
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comply with commission rules, requirements of the independent |
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organization certified under Section 39.151 for the ERCOT power |
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region, and requirements of the National Electric Reliability |
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Council applicable to the provisions of transmission service; and |
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(3) for an application filed by a person that is not an |
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electric utility, granting the application will not adversely |
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affect wholesale transmission rates, as compared to the rates |
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projected to be charged if an existing electric utility were to |
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build the transmission facility. |
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(f) The commission shall consider the requirements of |
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Subsection (e) to have been met by an electric utility or other |
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person that: |
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(1) is selected by the commission as a transmission |
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provider under a plan adopted by the commission under Section |
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39.904 not later than September 1, 2009; and |
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(2) before the certificate is issued, provides to the |
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commission a detailed plan regarding the offices, personnel, and |
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other resources the electric utility or other person will have in |
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this state to ensure provision of continuous and adequate |
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transmission service. |
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SECTION 2. Subsection (a), Section 37.053, Utilities Code, |
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is amended to read as follows: |
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(a) An electric utility or other person that wants to obtain |
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or amend a certificate must submit an application to the |
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commission. |
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SECTION 3. Sections 37.055, 37.057, and 37.151, Utilities |
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Code, are amended to read as follows: |
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Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An |
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electric utility or other person that wants to exercise a right or |
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privilege under a franchise or permit that the utility or other |
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person anticipates obtaining but has not been granted may apply to |
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the commission for a preliminary order under this section. |
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(b) The commission may issue a preliminary order declaring |
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that the commission, on application and under commission rules, |
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will grant the requested certificate on terms the commission |
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designates, after the electric utility or other person obtains the |
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franchise or permit. |
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(c) The commission shall grant the certificate on |
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presentation of evidence satisfactory to the commission that the |
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electric utility or other person has obtained the franchise or |
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permit. |
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Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION |
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FACILITY. The commission may grant a certificate for a new |
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transmission facility to a qualified applicant that meets the |
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requirements of this subchapter. The commission must approve or |
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deny an application for a certificate for a new transmission |
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facility not later than the first anniversary of the date the |
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application is filed. If the commission does not approve or deny |
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the application on or before that date, a party may seek a writ of |
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mandamus in a district court of Travis County to compel the |
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commission to decide on the application. |
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Sec. 37.151. PROVISION OF SERVICE. Except as provided by |
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this section, Section 37.152, and Section 37.153, a certificate |
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holder, other than those granted a certificate under Section |
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37.051(d), shall: |
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(1) serve every consumer in the utility's certificated |
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area; and |
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(2) provide continuous and adequate service in that |
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area. |
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SECTION 4. This Act takes effect September 1, 2009. |
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