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A BILL TO BE ENTITLED
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AN ACT
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relating to certificates of convenience and necessity for the |
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construction of facilities for the transmission of electricity. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 37.051(a), Utilities Code, is amended to |
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read as follows: |
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(a) An electric utility [or other person] may not directly |
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or indirectly provide service to the public under a franchise or |
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permit unless the utility [or other person] first obtains from the |
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commission a certificate that states that the public convenience |
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and necessity requires or will require the installation, operation, |
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or extension of the service. |
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SECTION 2. Section 37.053(a), Utilities Code, is amended to |
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read as follows: |
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(a) An electric utility [or other person] that wants to |
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obtain or amend a certificate must submit an application to the |
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commission. |
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SECTION 3. Section 37.055, Utilities Code, is amended to |
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read as follows: |
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Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An |
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electric utility [or other person] that wants to exercise a right or |
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privilege under a franchise or permit that the utility [or other
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person] anticipates obtaining but has not been granted may apply to |
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the commission for a preliminary order under this section. |
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(b) The commission may issue a preliminary order declaring |
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that the commission, on application and under commission rules, |
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will grant the requested certificate on terms the commission |
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designates, after the electric utility [or other person] obtains |
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the franchise or permit. |
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(c) The commission shall grant the certificate on |
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presentation of evidence satisfactory to the commission that the |
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electric utility [or other person] has obtained the franchise or |
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permit. |
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SECTION 4. Section 37.056, Utilities Code, is amended by |
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adding Subsections (e), (f), (g), (h), and (i) to read as follows: |
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(e) A certificate to build, own, or operate a new |
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transmission facility that directly interconnects with an existing |
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electric utility facility or municipally owned utility facility may |
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be granted only to the owner of that existing facility. If a new |
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transmission facility will directly interconnect with facilities |
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owned by different electric utilities or municipally owned |
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utilities, each entity shall be certificated to build, own, or |
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operate the new facility in separate and discrete equal parts |
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unless they agree otherwise. |
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(f) Notwithstanding Subsection (e), if a new transmission |
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line, whether single or double circuit, will create the first |
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interconnection between a load-serving station and an existing |
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transmission facility, the entity with a load-serving |
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responsibility or an electric cooperative that has a member with a |
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load-serving responsibility at the load-serving station shall be |
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certificated to build, own, or operate the new transmission line |
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and the load-serving station. The owner of the existing |
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transmission facility shall be certificated to build, own, or |
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operate the station or tap at the existing transmission facility to |
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provide the interconnection, unless after a reasonable period of |
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time the owner of the existing transmission facility is unwilling |
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to build, and then the entity with the load-serving responsibility |
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or an electric cooperative that has a member with a load-serving |
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responsibility may be certificated to build the interconnection |
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facility. |
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(g) Notwithstanding any other provision of this section, an |
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electric utility or municipally owned utility that is authorized to |
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build, own, or operate a new transmission facility under Subsection |
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(e) or (f) may designate another electric utility that is currently |
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certificated by the commission within the same electric power |
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region, coordinating council, independent system operator, or |
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power pool or a municipally owned utility to build, own, or operate |
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a portion or all of such new transmission facility, subject to any |
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requirements adopted by the commission by rule. |
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(h) The division of any required certification of |
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facilities described in this section shall apply unless each entity |
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agrees otherwise. Nothing in this section is intended to require a |
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certificate for facilities that the commission has determined by |
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rule do not require certification to build, own, or operate. |
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(i) Notwithstanding any other provision of this section, an |
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electric cooperative may be certificated to build, own, or operate |
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a new facility in place of any other electric cooperative if both |
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cooperatives agree, subject to any requirements adopted by the |
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commission by rule. |
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SECTION 5. Section 37.057, Utilities Code, is amended to |
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read as follows: |
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Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION |
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FACILITY. [The commission may grant a certificate for a new
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transmission facility to a qualified applicant that meets the
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requirements of this subchapter.] The commission must approve or |
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deny an application for a certificate for a new transmission |
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facility not later than the first anniversary of the date the |
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application is filed. If the commission does not approve or deny |
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the application on or before that date, a party may seek a writ of |
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mandamus in a district court of Travis County to compel the |
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commission to decide on the application. |
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SECTION 6. Section 37.151, Utilities Code, is amended to |
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read as follows: |
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Sec. 37.151. PROVISION OF SERVICE. Except as provided by |
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Sections [this section, Section] 37.152[,] and [Section] 37.153, a |
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certificate holder[, other than one granted a certificate under
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Section 37.051(d),] shall: |
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(1) serve every consumer in the utility's certificated |
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area; and |
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(2) provide continuous and adequate service in that |
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area. |
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SECTION 7. Section 37.154(a), Utilities Code, is amended to |
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read as follows: |
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(a) An electric utility or municipally owned utility may |
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sell, assign, or lease a certificate or a right obtained under a |
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certificate if [the commission determines that] the purchaser, |
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assignee, or lessee is already certificated by the commission to |
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provide electric service within the same electric power region, |
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coordinating council, independent system operator, or power pool, |
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or if the purchaser, assignee, or lessee is an electric cooperative |
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or municipally owned utility [can provide adequate service]. As |
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part of a transaction subject to Sections 39.262(l)-(o) and 39.915, |
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the commission may approve a sale, assignment, or lease to an entity |
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that has not been previously certificated if the approval will not |
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diminish the retail rate jurisdiction of this state. Any purchase, |
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assignment, or lease under this section requires that the |
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commission determine that the purchaser, assignee, or lessee can |
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provide adequate service. |
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SECTION 8. Sections 37.051(d), (e), and (f), Utilities |
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Code, are repealed. |
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SECTION 9. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2019. |