By: Phelan H.B. No. 3995
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to certificates of convenience and necessity for the
  construction of transmission facilities.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 37.051(a), Utilities Code, is amended to
  read as follows:
         (a)  An electric utility [or other person] may not directly
  or indirectly provide service to the public under a franchise or
  permit unless the utility [or other person] first obtains from the
  commission a certificate that states that the public convenience
  and necessity requires or will require the installation, operation,
  or extension of the service.
         SECTION 2.  Section 37.053(a), Utilities Code, is amended to
  read as follows:
         (a)  An electric utility [or other person] that wants to
  obtain or amend a certificate must submit an application to the
  commission.
         SECTION 3.  Section 37.055, Utilities Code, is amended to
  read as follows:
         Sec. 37.055.  REQUEST FOR PRELIMINARY ORDER. (a) An
  electric utility [or other person] that wants to exercise a right or
  privilege under a franchise or permit that the utility [or other
  person] anticipates obtaining but has not been granted may apply to
  the commission for a preliminary order under this section.
         (b)  The commission may issue a preliminary order declaring
  that the commission, on application and under commission rules,
  will grant the requested certificate on terms the commission
  designates, after the electric utility [or other person] obtains
  the franchise or permit.
         (c)  The commission shall grant the certificate on
  presentation of evidence satisfactory to the commission that the
  electric utility [or other person] has obtained the franchise or
  permit.
         SECTION 4.  Section 37.056, Utilities Code, is amended by
  adding Subsection (e) to read as follows:
         (e)  A certificate for a new transmission facility that
  directly interconnects with an existing electric utility facility
  may only be granted to the owner of that existing facility. If a new
  transmission facility will directly interconnect with facilities
  owned by different electric utilities, one or both of those
  utilities shall be certificated to construct the new facility.
         SECTION 5.  Section 37.057, Utilities Code, is amended to
  read as follows:
         Sec. 37.057.  DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
  FACILITY. [The commission may grant a certificate for a new
  transmission facility to a qualified applicant that meets the
  requirements of this subchapter.] The commission must approve or
  deny an application for a certificate for a new transmission
  facility not later than the first anniversary of the date the
  application is filed. If the commission does not approve or deny
  the application on or before that date, a party may seek a writ of
  mandamus in a district court of Travis County to compel the
  commission to decide on the application.
         SECTION 6.  Section 37.151, Utilities Code, is amended to
  read as follows:
         Sec. 37.151.  PROVISION OF SERVICE. Except as provided by
  this section, Section 37.152, and Section 37.153, a certificate
  holder[, other than one granted a certificate under Section
  37.051(d),] shall:
               (1)  serve every consumer in the utility's certificated
  area; and
               (2)  provide continuous and adequate service in that
  area.
         SECTION 7.  Section 37.154(a), Utilities Code, is amended to
  read as follows:
         (a)  An electric utility may sell, assign, or lease a
  certificate or a right obtained under a certificate if [the
  commission determines that] the purchaser, assignee, or lessee was
  previously certificated by the commission to provide electric
  service within the same electric power region, coordinating
  council, independent system operator, or power pool. As part of a
  transaction subject to Sections 39.262(l)-(o) and 39.915, the
  commission may approve a sale, assignment, or lease to an entity
  that has not been previously certificated if the approval will not
  diminish the retail rate jurisdiction of this state [can provide
  adequate service].
         SECTION 8.  Sections 37.051(d), (e), and (f), Utilities
  Code, are repealed.
         SECTION 9.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution. If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2019.