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A BILL TO BE ENTITLED
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AN ACT
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relating to the partition and transfer of a geographic portion of |
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service area certificate of convenience and necessity by |
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municipally owned electric utility systems. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter C, Utilities Code, is amended by |
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adding Section 37.103 to read as follows: |
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Sec. 37.103. PARTITION AND TRANSFER OF CERTIFICATE FOR |
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CERTAIN UTILITIES. (a) This section applies only to a municipally |
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owned electric utility system with 400,000 or more customers that |
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is owned by a municipality with a population of less than 850,000. |
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(b) A municipally owned electric utility system shall |
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identify and transfer to a nonprofit electric cooperative created |
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under Chapter 161 that serves more than 64,000 members the part of |
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the system's certificated service area that is not in the |
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certificated service area of another utility or dually certificated |
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and that is: |
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(1) outside the owning municipality's city limits; and |
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(2) located inside the county in which the owning |
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municipality is primarily located. |
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(c) The utility system shall sell to the electric |
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cooperative that will provide service to the partitioned area at |
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net book value all of the system's electric distribution assets |
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attributable to the transferred service area that are used to serve |
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the area. Generation assets and transmission service facilities |
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are not subject to sale under this subsection. |
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(d) The commission shall: |
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(1) review and approve the identification and transfer |
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of the service area to ensure compliance with this section; |
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(2) as necessary, amend or issue certificates of |
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convenience and necessity to implement the transfer of the service |
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area; and |
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(3) identify, oversee, and approve the sale of assets. |
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(e) This section expires September 1, 2019. |
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SECTION 2. The Public Utility Commission of Texas shall |
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ensure that the transfer and sales required by Section 37.103, |
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Utilities Code, as added by this Act, shall be completed not later |
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than September 1, 2018. |
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SECTION 3. This Act takes effect September 1, 2017. |