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A BILL TO BE ENTITLED
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AN ACT
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relating to electric industry market power rules. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.157(d), Utilities Code, is amended to |
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read as follows: |
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(d) Not later than January 10, 2000, the commission shall |
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adopt rules and enforcement procedures to govern transactions or |
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activities between a transmission and distribution utility and its |
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competitive affiliates to avoid potential market power abuses and |
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cross-subsidizations between regulated and competitive activities |
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both during the transition to and after the introduction of |
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competition. Nothing in this subsection is intended to affect or |
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modify the obligations or duties relating to any rules or standards |
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of conduct that may apply to a utility or the utility's affiliates |
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under orders or regulations of the Federal Energy Regulatory |
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Commission or the Securities and Exchange Commission. A utility |
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that is subject to statutes or regulations in other states that |
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conflict with a provision of this section may petition the |
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commission for a waiver of the conflicting provision on a showing of |
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good cause. The rules adopted under this section shall ensure that: |
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(1) a utility makes any products and services, other |
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than corporate support services, that it provides to a competitive |
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affiliate available, contemporaneously and in the same manner, to |
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the competitive affiliate's competitors and applies its tariffs, |
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prices, terms, conditions, and discounts for those products and |
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services in the same manner to all similarly situated entities; |
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(2) a utility does not: |
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(A) give a competitive affiliate or a competitive |
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affiliate's customers any preferential advantage, access, or |
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treatment regarding services other than corporate support |
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services; or |
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(B) act in a manner that is discriminatory or |
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anticompetitive with respect to a nonaffiliated competitor of a |
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competitive affiliate; |
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(3) a utility providing electric transmission or |
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distribution services: |
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(A) provides those services on nondiscriminatory |
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terms and conditions; |
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(B) does not establish as a condition for the |
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provision of those services the purchase of other goods or services |
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from the utility or the competitive affiliate; and |
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(C) does not provide competitive affiliates |
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preferential access to the utility's transmission and distribution |
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systems or to information about those systems; |
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(4) a utility does not release any proprietary |
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customer information to a competitive affiliate or any other |
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entity, other than an independent organization as defined by |
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Section 39.151 or a provider of corporate support services for the |
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purposes of providing the services, without obtaining prior |
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verifiable authorization, as determined from the commission, from |
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the customer; |
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(5) a utility, or any affiliated utility, does not[:
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[(A)] communicate with a current or potential |
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customer about products or services offered by a competitive |
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affiliate in a manner that favors a competitive affiliate[;] or |
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[(B)] allow a competitive affiliate[, before
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September 1, 2005,] to use the utility's corporate name, trademark, |
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brand, [or] logo, or other identifying brand feature, except that |
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an affiliate relationship may be disclosed in communications that |
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are not made for the purpose of advertising or joint marketing |
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[unless the competitive affiliate includes on employee business
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cards and in its advertisements of specific services to existing or
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potential residential or small commercial customers locating
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within the utility's certificated service area a disclaimer that
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states, "(Name of competitive affiliate) is not the same company as
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(name of utility) and is not regulated by the Public Utility
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Commission of Texas, and you do not have to buy (name of competitive
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affiliate)'s products to continue to receive quality regulated
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services from (name of utility)."]; |
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(6) a utility, or any affiliated utility, does not |
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conduct joint advertising or promotional activities with a |
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competitive affiliate in a manner that favors the competitive |
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affiliate; |
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(7) a utility is a separate, independent entity from |
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any competitive affiliates and, except as provided by Subdivisions |
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(8) and (9), does not share employees, facilities, information, or |
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other resources, other than permissible corporate support |
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services, with those competitive affiliates unless the utility can |
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prove to the commission that the sharing will not compromise the |
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public interest; |
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(8) a utility's office space is physically separated |
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from the office space of the utility's competitive affiliates by |
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being located in separate buildings or, if within the same |
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building, by a method such as having the offices on separate floors |
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or with separate access, unless otherwise approved by the |
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commission; |
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(9) a utility and a competitive affiliate: |
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(A) may, to the extent the utility implements |
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adequate safeguards precluding employees of a competitive |
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affiliate from gaining access to information in a manner |
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inconsistent with Subsection (g) or (i), share common officers and |
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directors, property, equipment, offices to the extent consistent |
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with Subdivision (8), credit, investment, or financing |
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arrangements to the extent consistent with Subdivision (17), |
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computer systems, information systems, and corporate support |
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services; and |
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(B) are not required to enter into prior written |
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contracts or competitive solicitations for non-tariffed |
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transactions between the utility and the competitive affiliate, |
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except that the commission by rule may require the utility and the |
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competitive affiliate to enter into prior written contracts or |
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competitive solicitations for certain classes of transactions, |
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other than corporate support services, that have a per unit value of |
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more than $75,000 or that total more than $1 million; |
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(10) a utility does not temporarily assign, for less |
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than one year, employees engaged in transmission or distribution |
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system operations to a competitive affiliate unless the employee |
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does not have knowledge of information that is intended to be |
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protected under this section; |
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(11) a utility does not subsidize the business |
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activities of an affiliate with revenues from a regulated service; |
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(12) a utility and its affiliates fully allocate costs |
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for any shared services, corporate support services, and other |
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items described by Subdivisions (8) and (9); |
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(13) a utility and its affiliates keep separate books |
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of accounts and records and the commission may review records |
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relating to a transaction between a utility and an affiliate; |
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(14) assets transferred or services provided between a |
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utility and an affiliate, other than transfers that facilitate |
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unbundling under Section 39.051 or asset valuation under Section |
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39.262, are priced at a level that is fair and reasonable to the |
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customers of the utility and reflects the market value of the assets |
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or services or the utility's fully allocated cost to provide those |
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assets or services; |
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(15) regulated services that a utility provides on a |
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routine or recurring basis are included in a tariff that is subject |
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to commission approval; |
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(16) each transaction between a utility and a |
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competitive affiliate is conducted at arm's length; and |
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(17) a utility does not allow an affiliate to obtain |
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credit under an arrangement that would include a specific pledge of |
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assets in the rate base of the utility or a pledge of cash |
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reasonably necessary for utility operations. |
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SECTION 2. This Act takes effect September 1, 2017. |