By: Guillen H.B. No. 2442

A BILL TO BE ENTITLED

AN ACT

relating to the procedure for amending or revoking certificates of public convenience and necessity issued to certain retail public utilities.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 13.2541, Water Code, is amended by adding Subsection (b-1) to read as follows:

(b-1) On the day a petitioner submits a petition to the utility commission under this section, the petitioner shall send, via certified mail, a copy of the petition to the certificate holder, who may submit information to the utility commission to controvert information submitted by the petitioner.

SECTION 2. Section 13.255, Water Code, is amended by adding Subsection (b-1) to read as follows:

(b-1) On the day a municipality submits an application for single certification to the utility commission under this section, the municipality shall send, via certified mail or hand-delivery, a copy of the application to the retail public utility.

SECTION 3. Section 13.255, Water Code, is amended by amending Subsection (c) to read as follows:

(c) The utility commission shall make a finding to grant single certification to the municipality. The utility commission shall also determine in its order the monetary amount that is adequate and just to compensate the retail public utility for [determine whether single certification as requested by the municipality would result in] retail public utility property [of a retail public utility] being rendered useless or valueless by the single certification as requested by the municipality, as determined by the utility commission [to the retail public utility, and shall determine in its order the monetary amount that is adequate and just to compensate the retail public utility for such property]. If the municipality in its application has requested the transfer of specified property of the retail public utility to the municipality or to a franchised utility, the utility commission shall also determine in its order the adequate and just compensation to be paid for such property pursuant to the provisions of this section, including an award for damages to property remaining in the ownership of the retail public utility after single certification. The order of the utility commission shall not be effective to transfer property. A transfer of property may [only] be obtained under this section by only a court judgment rendered pursuant to Subsection (d) or (e). The grant of single certification by the utility commission takes [shall go into] effect on the date the municipality or franchised utility, as the case may be, pays adequate and just compensation pursuant to court order, or pays an amount into the registry of the court or to the retail public utility under Subsection (f). If the court judgment provides that the retail public utility is not entitled to any compensation, the grant of single certification takes [shall go into] effect when the court judgment becomes final.

SECTION 4. Section 13.255, Water Code, is amended by adding Subsection (c-3) to read as follows:

(c-3) Before filing an appeal under Subsection (e), and within seven calendar days of the finding by the utility commission under Subsection (c), the retail public utility may appeal to the utility commission in a separate hearing before the utility commission a final order of the utility commission issued under Subsection (c).

SECTION 5. The changes in law made by this Act apply only to a proceeding affecting a certificate of public convenience and necessity that commences on or after the effective date of this Act. A proceeding affecting a certificate of public convenience and necessity that commenced before the effective date of this Act is governed by the law in effect on the date the proceeding is commenced, and that law is continued in effect for that purpose.

SECTION 6. This Act takes effect September 1, 2023.