BILL ANALYSIS

S.B. 1211

By: Hancock

State Affairs

Committee Report (Unamended)

BACKGROUND AND PURPOSE

It has been noted that the Public Utility Commission of Texas (PUC) reviews certain merger and acquisition activities of power generation companies to prevent any one company from becoming a monopoly or oligopoly that could potentially manipulate the price of electricity. It has been suggested that the current conditions that trigger PUC review and approval of mergers and consolidations make it harder for the PUC to perform the required reviews in a timely fashion, which can cause regulatory uncertainty and impede business. S.B. 1211 seeks to reduce the administrative burden on business and allow for a more efficient use of PUC resources by changing those conditions.

CRIMINAL JUSTICE IMPACT

It is the committee's opinion that this bill does not expressly create a criminal offense, increase the punishment for an existing criminal offense or category of offenses, or change the eligibility of a person for community supervision, parole, or mandatory supervision.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any additional rulemaking authority to a state officer, department, agency, or institution.

ANALYSIS

S.B. 1211 amends the Utilities Code to change the condition that triggers the requirement to obtain the approval of the Public Utility Commission of Texas (PUC) before closing on a transaction between power generation companies that offer electricity for sale in Texas in the same power region to merge, consolidate, or otherwise become affiliated. The bill makes that requirement applicable if the merged, consolidated, or affiliated entity would own and control more than 10 percent of the total installed generation capacity located in, or capable of delivering electricity to, the region, rather than on the basis of the electricity offered for sale in the region by the merged, consolidated, or affiliated entity exceeding one percent of the total electricity for sale in the region. The bill clarifies that the requirement applies to a power generation company that offers electricity for sale in a power region open to customer choice. The bill establishes that a request for approval is considered approved if the PUC does not issue an order approving a transaction or condition approval on adoption of certain reasonable modifications before the 121st day after the date the PUC receives the request.

EFFECTIVE DATE

September 1, 2019.