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A BILL TO BE ENTITLED
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AN ACT
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relating to regulation of mergers and consolidations of power |
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generation companies. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 39.158, Utilities Code, is amended by |
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amending Subsection (a) and adding Subsections (a-1) and (a-2) to |
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read as follows: |
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(a) A power generation company [An owner of electric
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generation facilities] that offers electricity for sale in a power |
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region open to customer choice [the state] and proposes a |
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transaction to merge, consolidate, or otherwise become affiliated |
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with another power generation company [owner of electric generation
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facilities] that offers electricity for sale in the same power |
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region [this state] shall obtain the approval of the commission |
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before closing if the merged, consolidated, or affiliated entity |
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would own or control more than 10 [electricity offered for sale in
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the power region by the merged, consolidated, or affiliated entity
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will exceed one] percent of the total installed generation capacity |
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located in, or capable of delivering electricity to, [electricity
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for sale in] the power region. |
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(a-1) An [The] approval required by Subsection (a) must |
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[shall] be requested at least 120 days before the date of the |
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proposed closing of the transaction. |
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(a-2) The commission shall approve a [the] transaction |
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described by Subsection (a) unless the commission finds that the |
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transaction results in a violation of Section 39.154. If the |
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commission finds that the transaction as proposed would violate |
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Section 39.154, the commission may condition approval of the |
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transaction on adoption of reasonable modifications to the |
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transaction as prescribed by the commission to mitigate potential |
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market power abuses. |
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SECTION 2. Section 39.158(a), Utilities Code, as amended by |
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this Act, and Sections 39.158(a-1) and (a-2), Utilities Code, as |
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added by this Act, apply only to a request for an approval of a |
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transaction received by the Public Utilities Commission of Texas on |
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or after the effective date of this Act. A request for an approval |
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received by that commission before the effective date of this Act is |
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governed by the law in effect immediately before the effective date |
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of this Act, and that law is continued in effect for that purpose. |
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SECTION 3. This Act takes effect September 1, 2019. |