| |
|
|
A BILL TO BE ENTITLED
|
|
|
AN ACT
|
| |
|
|
relating to certificates of convenience and necessity for the |
|
|
construction of facilities for the transmission of electricity. |
|
|
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 Subsections (e), (f), (g), (h), and (i) to read as follows: |
|
|
(e) A certificate to build, own, or operate a new |
|
|
transmission facility that directly interconnects with an existing |
|
|
electric utility facility or municipally owned utility facility may |
|
|
be granted only to the owner of that existing facility. If a new |
|
|
transmission facility will directly interconnect with facilities |
|
|
owned by different electric utilities or municipally owned |
|
|
utilities, each entity shall be certificated to build, own, or |
|
|
operate the new facility in separate and discrete equal parts |
|
|
unless they agree otherwise. |
|
|
(f) Notwithstanding Subsection (e), if a new transmission |
|
|
line, whether single or double circuit, will create the first |
|
|
interconnection between a load-serving station and an existing |
|
|
transmission facility, the entity with a load-serving |
|
|
responsibility or an electric cooperative that has a member with a |
|
|
load-serving responsibility at the load-serving station shall be |
|
|
certificated to build, own, or operate the new transmission line |
|
|
and the load-serving station. The owner of the existing |
|
|
transmission facility shall be certificated to build, own, or |
|
|
operate the station or tap at the existing transmission facility to |
|
|
provide the interconnection, unless after a reasonable period of |
|
|
time the owner of the existing transmission facility is unwilling |
|
|
to build, and then the entity with the load-serving responsibility |
|
|
or an electric cooperative that has a member with a load-serving |
|
|
responsibility may be certificated to build the interconnection |
|
|
facility. |
|
|
(g) Notwithstanding any other provision of this section, an |
|
|
electric utility or municipally owned utility that is authorized to |
|
|
build, own, or operate a new transmission facility under Subsection |
|
|
(e) or (f) may designate another electric utility that is currently |
|
|
certificated by the commission within the same electric power |
|
|
region, coordinating council, independent system operator, or |
|
|
power pool or a municipally owned utility to build, own, or operate |
|
|
a portion or all of such new transmission facility, subject to any |
|
|
requirements adopted by the commission by rule. |
|
|
(h) The division of any required certification of |
|
|
facilities described in this section shall apply unless each entity |
|
|
agrees otherwise. Nothing in this section is intended to require a |
|
|
certificate for facilities that the commission has determined by |
|
|
rule do not require certification to build, own, or operate. |
|
|
(i) Notwithstanding any other provision of this section, an |
|
|
electric cooperative may be certificated to build, own, or operate |
|
|
a new facility in place of any other electric cooperative if both |
|
|
cooperatives agree, subject to any requirements adopted by the |
|
|
commission by rule. |
|
|
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 |
|
|
Sections [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 or municipally owned 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 is already certificated by the commission to |
|
|
provide electric service within the same electric power region, |
|
|
coordinating council, independent system operator, or power pool, |
|
|
or if the purchaser, assignee, or lessee is an electric cooperative |
|
|
or municipally owned utility [can provide adequate service]. 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. Any purchase, |
|
|
assignment, or lease under this section requires that the |
|
|
commission determine that the purchaser, assignee, or lessee 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. |
|
|
|
|
|
* * * * * |