|
|
A BILL TO BE ENTITLED
|
|
AN ACT
|
|
relating to certain protections for customers in the restructured |
|
electric services market. |
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
SECTION 1. Section 39.101, Utilities Code, is amended by |
|
amending Subsection (h) to read as follows: |
|
(h) A retail electric provider, power generation company, |
|
aggregator, or other entity that provides retail electric service |
|
may not disconnect service to a residential customer during an |
|
extreme weather emergency or on a weekend day. The entity providing |
|
service shall defer collection of the full payment of bills that are |
|
due during an extreme weather emergency until after the emergency |
|
is over and shall work with customers to establish a pay schedule |
|
for deferred bills. For purposes of this subsection, "extreme |
|
weather emergency" means [a period when]: |
|
(1) a period when the previous day's highest |
|
temperature did not exceed 32 degrees Fahrenheit and the |
|
temperature is predicted to remain at or below that level of the |
|
next 24 hours according to the nearest National Weather Service |
|
reports; [or] |
|
(2) a day for which the National Weather Service |
|
forecasts that the [issues a] heat index will reach or exceed 105 |
|
degrees Fahrenheit in [advisory for] any part of a county in the |
|
relevant service territory;[,] or |
|
(3) a period when, [such an advisory has been issued] |
|
on any one of the previous two calendar days, the National Weather |
|
Service observes a heat index of 105 degrees Fahrenheit or more in |
|
any part of a county in the relevant service territory. |
|
SECTION 2. Section 39.151(c), Utilities Code, is amended to |
|
read as follows: |
|
(c) The commission shall certify an independent |
|
organization or organizations to perform the functions prescribed |
|
by this section. The commission shall apply the provisions of this |
|
section and Sections 39.1511, 39.1512, [and] 39.1515, and 39.1516 |
|
so as to avoid conflict with a ruling of a federal regulatory body. |
|
SECTION 3. Subchapter D, Chapter 39, Utilities Code, is |
|
amended by adding Section 39.1516 to read as follows: |
|
Sec. 39.1516. RETAIL ELECTRIC MARKET MONITOR. (a) An |
|
independent organization certified under Section 39.151 shall |
|
contract with an entity selected by the commission to act as the |
|
commission's retail electric market monitor to detect and prevent |
|
market manipulation strategies, unfair, misleading, or deceptive |
|
practices and to recommend measures to enhance the efficiency of |
|
the retail market. |
|
(b) The independent organization shall provide to the |
|
personnel of the retail market monitor: |
|
(1) full access to the organization's records that |
|
concern operations, settlement, and reliability of the retail |
|
market; and |
|
(2) other support and cooperation the commission |
|
determines is necessary for the retail market monitor to perform |
|
the retail market monitor's functions. |
|
(c) The independent organization shall use money from the |
|
rate authorized by Section 39.151(e) to pay for the retail market |
|
monitor's activities. |
|
(d) The commission is responsible for ensuring that the |
|
retail market monitor has the resources, expertise, and authority |
|
necessary to monitor the retail electric market effectively and |
|
shall adopt rules and perform oversight of the retail market |
|
monitor as necessary. The retail market monitor shall operate |
|
under the supervision and oversight of the commission. The |
|
commission shall retain all enforcement authority conferred under |
|
this title, and this section may not be construed to confer |
|
enforcement authority on the retail market monitor or to authorize |
|
the commission to delegate the commission's enforcement authority |
|
to the retail market monitor. The commission by rule shall define: |
|
(1) the retail market monitor's monitoring |
|
responsibilities, including reporting obligations and limitations; |
|
(2) the standards for funding the retail market |
|
monitor, including staffing requirements; |
|
(3) qualifications for personnel of the retail market |
|
monitor; and |
|
(4) ethical standards for the retail market monitor |
|
and the personnel of the retail market monitor. |
|
(e) In adopting rules governing the standards for funding |
|
the retail market monitor, the commission shall consult with a |
|
subcommittee of the independent organization's governing body to |
|
receive information on how money is or should be spent for market |
|
monitoring functions. Rules governing ethical standards must |
|
include provisions designed to ensure that the personnel of the |
|
retail market monitor are professionally and financially |
|
independent from market participants. The commission shall develop |
|
and implement policies that clearly separate the policymaking |
|
responsibilities of the commission and the monitoring, analysis, |
|
and reporting responsibilities of the retail market monitor. |
|
(f) The retail market monitor immediately shall report |
|
directly to the commission any potential market manipulations and |
|
any discovered or potential violations of commission rules or rules |
|
of the independent organization. |
|
(g) The personnel of the retail market monitor may |
|
communicate with commission staff on any matter without |
|
restriction. |
|
(h) The retail market monitor annually shall submit to the |
|
commission and the independent organization a report that |
|
identifies market design flaws and recommends methods to correct |
|
the flaws. The commission and the independent organization shall |
|
review the report and evaluate whether changes to rules of the |
|
commission or the independent organization should be made. |
|
SECTION 4. Section 39.157, Utilities Code, is amended by |
|
amending Subsection (a) and adding Subsection (a-1) to read as |
|
follows: |
|
(a) The commission shall monitor market power associated |
|
with the generation, transmission, distribution, and sale of |
|
electricity in this state. On a finding that market power abuses or |
|
other violations of this section have occurred or are occurring, |
|
the commission shall require reasonable mitigation of the market |
|
power by one or any combination of the following: |
|
(1) ordering the construction of additional |
|
transmission or distribution facilities; |
|
(2) [, by] seeking an injunction or civil penalties as |
|
necessary to eliminate or to remedy the market power abuse or |
|
violation as authorized by Chapter 15; |
|
(3) [, by] imposing an administrative penalty as |
|
authorized by Chapter 15; |
|
(4) ordering refunds to affected parties pursuant to |
|
Section 17.157; |
|
(5) with regard to the wholesale market, ordering |
|
refunds to affected parties in a manner established by the |
|
commission; or |
|
(6) [, or by] suspending, revoking, or amending a |
|
certificate or registration as authorized by Section 39.356. |
|
(a-1) The commission shall permit the office, in exercising |
|
its powers to represent residential and small commercial consumers, |
|
to participate in enforcement proceedings to seek refunds for |
|
alleged market power abuses or manipulation of the wholesale |
|
market. Section 15.024(c) does not apply to an administrative |
|
penalty imposed under this section. For purposes of this |
|
subchapter, market power abuses are practices by persons possessing |
|
market power that are unreasonably discriminatory or tend to |
|
unreasonably restrict, impair, or reduce the level of competition, |
|
including practices that tie unregulated products or services to |
|
regulated products or services or unreasonably discriminate in the |
|
provision of regulated services. For purposes of this section, |
|
"market power abuses" include predatory pricing, withholding of |
|
production, precluding entry, and collusion. A violation of the |
|
code of conduct provided by Subsection (d) that materially impairs |
|
the ability of a person to compete in a competitive market shall be |
|
deemed to be an abuse of market power. The possession of a high |
|
market share in a market open to competition may not, of itself, be |
|
deemed to be an abuse of market power; however, this sentence shall |
|
not affect the application of state and federal antitrust laws. |
|
SECTION 5. Subchapter D, Chapter 39, Utilities Code, is |
|
amended by adding Section 39.1575 to read as follows: |
|
Sec. 39.1575. INVESTIGATORY AUTHORITY OVER RETAIL PRICES. |
|
(a) The commission shall investigate whether a retail electric |
|
provider is abusing market power or engaging in unfair, misleading, |
|
or deceptive practices. Retail electric providers shall cooperate |
|
with the commission in any investigation and shall provide |
|
information requested. |
|
(b) The commission may assess administrative penalties |
|
under Section 15.023 for any violation discovered under this |
|
section. |
|
SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is |
|
amended by adding Sections 39.928 and 39.929 to read as follows: |
|
Sec. 39.928. COST OF NODAL MARKET IMPLEMENTATION. An |
|
independent organization certified under Section 39.151 may not |
|
pass through to a retail customer or retail electric provider a cost |
|
or charge associated with nodal wholesale market design |
|
implementation. |
|
Sec. 39.929. PUBLICATION OF NATURAL GAS FUEL AND ELECTRIC |
|
ENERGY PRICING INFORMATION. (a) The commission shall publish on |
|
the Internet websites http://www.puc.state.tx.us and |
|
http://www.powertochoose.org charts or provide a link that |
|
compares the prices of: |
|
(1) natural gas; |
|
(2) real-time or balancing electric energy; and |
|
(3) retail electricity. |
|
(b) The commission shall provide that the charts be updated |
|
at least once each business day that the commission's offices are |
|
open. |
|
SECTION 7. The Public Utility Commission of Texas shall |
|
adopt rules to implement the changes in law made by this Act as |
|
quickly as practicable. |
|
SECTION 8. This Act takes effect immediately if it receives |
|
a vote of two-thirds of all the members elected to each house, as |
|
provided by Section 39, Article III, Texas Constitution. If this |
|
Act does not receive the vote necessary for immediate effect, this |
|
Act takes effect September 1, 2009. |