By: Fraser  S.B. No. 1913
         (In the Senate - Filed March 12, 2009; March 24, 2009, read
  first time and referred to Committee on Business and Commerce;
  April 24, 2009, reported adversely, with favorable Committee
  Substitute by the following vote:  Yeas 7, Nays 0; April 24, 2009,
  sent to printer.)
 
  COMMITTEE SUBSTITUTE FOR S.B. No. 1913 By:  Fraser
 
 
A BILL TO BE ENTITLED
 
AN ACT
 
  relating to certificates of convenience and necessity.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 37.051, Utilities Code, is amended by
  amending Subsection (a) and adding Subsections (d), (e), and (f) to
  read as follows:
         (a)  An electric utility or other person may not directly or
  indirectly provide service to the public under a franchise or
  permit unless the utility or other person first obtains from the
  commission a certificate that states that the public convenience
  and necessity requires or will require the installation, operation,
  or extension of the service.
         (d)  A certificate may be granted to an electric utility or
  other person under this section for a facility used as part of the
  transmission system serving the ERCOT power region solely for the
  transmission of electricity.
         (e)  The commission may consider an application filed by a
  person not currently certificated as an electric utility for a
  certificate of convenience and necessity to construct transmission
  capacity that serves the ERCOT power region. Before granting a
  certificate under this section, the commission must find, after
  notice and hearing, that:
               (1)  the applicant has the technical ability, financial
  ability, and sufficient resources in this state to own, operate,
  and maintain reliable transmission facilities;
               (2)  the applicant has the resources and ability to
  comply with commission rules, requirements of the independent
  organization certified under Section 39.151 for the ERCOT power
  region, and requirements of the National Electric Reliability
  Council applicable to the provisions of transmission service; and
               (3)  for an application filed by a person that is not an
  electric utility, granting the application will not adversely
  affect wholesale transmission rates, as compared to the rates
  projected to be charged if an existing electric utility were to
  build the transmission facility.
         (f)  The commission shall consider the requirements of
  Subsection (e) to have been met by an electric utility or other
  person that:
               (1)  is selected by the commission as a transmission
  provider under a plan adopted by the commission under Section
  39.904 not later than September 1, 2009; and
               (2)  before the certificate is issued, provides to the
  commission a detailed plan regarding the offices, personnel, and
  other resources the electric utility or other person will have in
  this state to ensure provision of continuous and adequate
  transmission service.
         SECTION 2.  Subsection (a), Section 37.053, Utilities Code,
  is amended to read as follows:
         (a)  An electric utility or other person that wants to obtain
  or amend a certificate must submit an application to the
  commission.
         SECTION 3.  Sections 37.055, 37.057, and 37.151, Utilities
  Code, are amended to read as follows:
         Sec. 37.055.  REQUEST FOR PRELIMINARY ORDER.  (a)  An
  electric utility or other person that wants to exercise a right or
  privilege under a franchise or permit that the utility or other
  person anticipates obtaining but has not been granted may apply to
  the commission for a preliminary order under this section.
         (b)  The commission may issue a preliminary order declaring
  that the commission, on application and under commission rules,
  will grant the requested certificate on terms the commission
  designates, after the electric utility or other person obtains the
  franchise or permit.
         (c)  The commission shall grant the certificate on
  presentation of evidence satisfactory to the commission that the
  electric utility or other person has obtained the franchise or
  permit.
         Sec. 37.057.  DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
  FACILITY.  The commission may grant a certificate for a new
  transmission facility to a qualified applicant that meets the
  requirements of this subchapter. The commission must approve or
  deny an application for a certificate for a new transmission
  facility not later than the first anniversary of the date the
  application is filed. If the commission does not approve or deny
  the application on or before that date, a party may seek a writ of
  mandamus in a district court of Travis County to compel the
  commission to decide on the application.
         Sec. 37.151.  PROVISION OF SERVICE.  Except as provided by
  this section, Section 37.152, and Section 37.153, a certificate
  holder, other than those granted a certificate under Section
  37.051(d), shall:
               (1)  serve every consumer in the utility's certificated
  area; and
               (2)  provide continuous and adequate service in that
  area.
         SECTION 4.  This Act takes effect September 1, 2009.
 
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