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  83R19935 RWG-F
 
  By: Huberty, Menendez H.B. No. 2049
 
  Substitute the following for H.B. No. 2049:
 
  By:  Cook C.S.H.B. No. 2049
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to a qualifying cogeneration facility's ability to sell
  electric energy to multiple purchasers.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 31.002(13), Utilities Code, is amended
  to read as follows:
               (13)  "Qualifying cogenerator" and "qualifying small
  power producer" have the meanings assigned those terms by 16 U.S.C.
  Sections 796(18)(C) and 796(17)(D). A qualifying cogenerator that
  provides electricity to a [the] purchaser of the cogenerator's
  thermal output is not for that reason considered to be a retail
  electric provider or a power generation company.
         SECTION 2.  Subchapter B, Chapter 37, Utilities Code, is
  amended by adding Section 37.0521 to read as follows:
         Sec. 37.0521.  EXCEPTION FOR RETAIL SALES BY CERTAIN
  QUALIFYING COGENERATORS. (a) Notwithstanding any other provision
  of this title, a qualifying cogenerator may sell electric energy at
  retail to more than one purchaser of the cogenerator's thermal
  output under Sections 35.061 and 36.007.
         (b)  A qualifying cogenerator that sells electric energy at
  retail to more than one purchaser is not subject to regulation as a
  retail electric utility under Chapter 37 or subject to regulation
  as a retail electric provider or power generation company under
  this subtitle if the transmission facilities used to provide
  electricity necessary to serve the purchasers of the thermal
  output:
               (1)  do not extend beyond the site of any thermal
  purchaser; and
               (2)  are owned by the qualifying cogenerator, the
  thermal purchaser, or an affiliate of the qualifying cogenerator or
  thermal purchaser.
         (c)  The limitation on the sale of electricity does not apply
  to the sale of wholesale electricity.
         (d)  This section does not apply to a municipally owned
  utility or an electric cooperative providing service to an area
  where competition has not been introduced.
         SECTION 3.  This Act takes effect September 1, 2013.