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A BILL TO BE ENTITLED
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AN ACT
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relating to the regulation of the amount of installed electric |
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generation capacity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.001, Utilities Code, is amended by |
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amending Subsection (a) and adding Subsection (d-1) to read as |
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follows: |
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(a) The legislature finds that the production and sale of |
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electricity is not a monopoly warranting regulation of rates, |
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operations, and services and that the public interest in |
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competitive electric markets requires that, except for |
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transmission and distribution services and for the recovery of |
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stranded costs, generation capacity and electric services and their |
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prices should be determined by customer choices and the normal |
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forces of competition. As a result, this chapter is enacted to |
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protect the public interest during the transition to and in the |
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establishment of a fully competitive electric power industry. |
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(d-1) The legislature finds that the amount of installed |
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generation capacity is best determined by investor, generator, and |
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customer choices through the normal forces of competition. As a |
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result, regulatory authorities may not mandate or otherwise |
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regulate the amount of installed generation capacity or require a |
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surplus or reserve of installed generation capacity above actual or |
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forecasted levels of load. |
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SECTION 2. Section 39.152(a), Utilities Code, is amended to |
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read as follows: |
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(a) The commission shall certify a power region if: |
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(1) a sufficient number of interconnected utilities in |
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the power region fall under the operational control of an |
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independent organization as described by Section 39.151; and |
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(2) the power region has a generally applicable tariff |
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that guarantees open and nondiscriminatory access for all users to |
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transmission and distribution facilities in the power region as |
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provided by Section 39.203[; and
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[(3)
no person owns and controls more than 20 percent
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of the installed generation capacity located in or capable of
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delivering electricity to a power region, as determined according
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to Section 39.154]. |
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SECTION 3. Section 39.262(d), Utilities Code, is amended to |
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read as follows: |
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(d) The affiliated power generation company shall |
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reconcile, and either credit or bill to the transmission and |
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distribution utility, the net sum of: |
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(1) the former electric utility's final fuel balance |
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determined under Section 39.202(c); and |
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(2) any difference between the price of power obtained |
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through the capacity auctions under Section [Sections] 39.153 and |
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former Section 39.156 and the power cost projections that were |
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employed for the same time period in the ECOM model to estimate |
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stranded costs in the proceeding under Section 39.201. |
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SECTION 4. Sections 39.152(d), 39.153(d), 39.154, 39.156, |
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39.157(c), and 39.158(a), Utilities Code, are repealed. |
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SECTION 5. This Act takes effect September 1, 2015. |