| |
| |
| |
|
|
AN ACT
|
|
|
relating to the delay of retail electric competition in the areas of |
|
|
the state covered by the Southeastern Electric Reliability Council |
|
|
and to the recovery of certain transmission costs by electric |
|
|
utilities in those areas and to the provision of power during a |
|
|
natural disaster or declared emergency. |
|
|
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|
|
SECTION 1. Subsection (a), Section 36.209, Utilities Code, |
|
|
is amended to read as follows: |
|
|
(a) This section applies only to an electric utility that |
|
|
operates solely outside of ERCOT in areas of this state included in |
|
|
the Southeastern Electric Reliability Council, the Southwest Power |
|
|
Pool, or the Western Electricity Coordinating Council and that owns |
|
|
or operates transmission facilities. |
|
|
SECTION 2. Subchapter D, Chapter 38, Utilities Code, is |
|
|
amended by adding Section 38.073 to read as follows: |
|
|
Sec. 38.073. AUTHORITY OF COMMISSION DURING AN EMERGENCY. |
|
|
(a) On a declaration of a natural disaster or other emergency by |
|
|
the governor, the commission may require an electric utility, |
|
|
municipally owned utility, electric cooperative, qualifying |
|
|
facility, power generation company, exempt wholesale generator, or |
|
|
power marketer to sell electricity to an electric utility, |
|
|
municipally owned utility, or electric cooperative that is unable |
|
|
to supply power to meet customer demand due to the natural disaster |
|
|
or other emergency. Any plant, property, equipment, or other items |
|
|
used to receive or deliver electricity under this subsection are |
|
|
used and useful in delivering service to the public, and the |
|
|
commission shall allow timely recovery for the costs of those |
|
|
items. The commission may order an electric utility, municipally |
|
|
owned utility, or electric cooperative to provide interconnection |
|
|
service to another electric utility, municipally owned utility, or |
|
|
electric cooperative to facilitate a sale of electricity under this |
|
|
section. If the commission does not order the sale of electricity |
|
|
during a declared emergency as described by this subsection, the |
|
|
commission shall promptly submit to the legislature a report |
|
|
describing the reasons why the commission did not make that order. |
|
|
(b) If an entity receives electricity under Subsection (a), |
|
|
the receiving entity shall reimburse the supplying entity for the |
|
|
actual cost of providing the electricity. The entity receiving the |
|
|
electricity is responsible for any transmission and distribution |
|
|
service charges specifically incurred in relation to providing the |
|
|
electricity. |
|
|
(c) An entity that pays for electricity received under |
|
|
Subsection (b) and that is regulated by the commission may fully |
|
|
recover the cost of the electricity in a timely manner by: |
|
|
(1) including the cost in the entity's fuel cost under |
|
|
Section 36.203; or |
|
|
(2) notwithstanding Section 36.201, imposing a |
|
|
different surcharge. |
|
|
SECTION 3. Section 39.452, Utilities Code, is amended by |
|
|
amending Subsection (b) and adding Subsections (i) and (j) to read |
|
|
as follows: |
|
|
(b) An electric [Notwithstanding Subsection (a), except for
|
|
|
adjustments authorized by Sections 36.203, 39.454, 39.455, and
|
|
|
39.456, and except for proceedings and cost recovery mechanisms
|
|
|
authorized by Sections 39.458-39.463, a person may not file a
|
|
|
proceeding to change, alter, or revoke any rate offered or charged
|
|
|
by an electric utility subject to this subchapter before June 30,
|
|
|
2007, with an effective date no earlier than June 30, 2008.
As part
|
|
|
of a Subchapter C, Chapter 36, rate proceeding, the] utility |
|
|
subject to this subchapter shall propose a competitive generation |
|
|
tariff to allow eligible customers the ability to contract for |
|
|
competitive generation. The commission shall approve, reject, or |
|
|
modify the proposed tariff not later than September 1, 2010. The |
|
|
tariffs subject to this subsection may not be considered to offer a |
|
|
discounted rate or rates under Section 36.007, and the utility's |
|
|
rates shall be set, in the proceeding in which the tariff is |
|
|
adopted, to recover any costs unrecovered as a result of the |
|
|
implementation of the tariff. The commission shall ensure that a |
|
|
competitive generation tariff shall not be implemented in a manner |
|
|
that harms the sustainability or competitiveness of manufacturers |
|
|
that choose not to take advantage of competitive generation. |
|
|
Pursuant to the competitive generation tariff, an electric utility |
|
|
subject to this subsection shall purchase competitive generation |
|
|
service, selected by the customer, and provide the generation at |
|
|
retail to the customer. An electric utility subject to this |
|
|
subsection shall provide and price retail transmission service, |
|
|
including necessary ancillary services, to retail customers who |
|
|
choose to take advantage of the competitive generation tariff at a |
|
|
rate that is unbundled from the utility's cost of service. Such |
|
|
customers shall not be considered wholesale transmission |
|
|
customers. Notwithstanding any other provision of this chapter, |
|
|
the commission may not issue a decision relating to a competitive |
|
|
generation tariff that is contrary to an applicable decision, rule, |
|
|
or policy statement of a federal regulatory agency having |
|
|
jurisdiction. |
|
|
(i) Notwithstanding any other provision of this chapter, if |
|
|
the commission has not approved the transition to competition plan |
|
|
under this section before January 1, 2009, an electric utility |
|
|
subject to this subchapter shall cease all activities relating to |
|
|
the transition to competition under this section. The commission |
|
|
may, on its own motion or the motion of any affected person, |
|
|
initiate a proceeding under Section 39.152 to certify a power |
|
|
region to which the utility belongs as a qualified power region when |
|
|
the conditions supporting such a proceeding exist. The commission |
|
|
may not approve a plan under Subsection (g) until the expiration of |
|
|
four years from the time that the commission certifies a power |
|
|
region under Subsection (f). If after the expiration of four years |
|
|
from the time the commission certifies a power region under |
|
|
Subsection (f), and after notice and a hearing, the commission |
|
|
determines consistent with the study required by Section 5, S.B. |
|
|
No. 1492, Acts of the 81st Legislature, Regular Session, 2009, that |
|
|
the electric utility cannot comply with Section 38.073, it shall |
|
|
consider approving a plan under Subsection (g). |
|
|
(j) Notwithstanding any other provision of this subtitle, |
|
|
in awarding a certificate of convenience and necessity or allowing |
|
|
cost recovery for purchased power by an electric utility subject to |
|
|
this section, the commission shall ensure in its determination that |
|
|
the provisions of Sections 37.056(c)(4)(D) and (E) are met and that |
|
|
the generating facility or the purchased power agreement satisfies |
|
|
the identified reliability needs of the utility. |
|
|
SECTION 4. Not later than the 90th day after the effective |
|
|
date of this Act, an electric utility operating in the Southeastern |
|
|
Electric Reliability Council that is subject to traditional cost of |
|
|
service rate regulation and on the effective date of this Act has a |
|
|
transition to competition plan on file with the Public Utility |
|
|
Commission of Texas shall: |
|
|
(1) withdraw the plan from the commission; and |
|
|
(2) cease all activities related to the plan. |
|
|
SECTION 5. (a) Not later than November 1, 2009, the Public |
|
|
Utility Commission of Texas shall conduct and complete a study to |
|
|
evaluate: |
|
|
(1) the locations in this state that are most likely to |
|
|
experience a natural disaster or other emergency; |
|
|
(2) the ability of each entity described by Subsection |
|
|
(a), Section 38.073, Utilities Code, as added by this Act, to comply |
|
|
with that section in the event of a natural disaster or other |
|
|
emergency; and |
|
|
(3) any steps an entity described by Subsection (a), |
|
|
Section 38.073, Utilities Code, as added by this Act, should take to |
|
|
prepare to comply with that section. |
|
|
(b) An entity described by Subsection (a), Section 38.073, |
|
|
Utilities Code, as added by this Act, shall comply with any order |
|
|
issued by the Public Utility Commission of Texas under that |
|
|
subsection while the study required by Subsection (a) of this |
|
|
section is conducted. |
|
|
(c) The Public Utility Commission of Texas shall prepare a |
|
|
report based on the study conducted under Subsection (a) of this |
|
|
section. The report must include any recommendations the |
|
|
commission considers advisable in relation to the implementation of |
|
|
and compliance with Section 38.073, Utilities Code, as added by |
|
|
this Act. The commission may include the report in the report |
|
|
required by Section 31.003, Utilities Code. |
|
|
SECTION 6. 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, 2009. |
|
|
|
|
|
|
| |
| |
| |
| |
______________________________ |
______________________________ |
| |
President of the Senate |
Speaker of the House |
| |
|
|
I hereby certify that S.B. No. 1492 passed the Senate on |
|
|
April 28, 2009, by the following vote: Yeas 31, Nays 0; and that |
|
|
the Senate concurred in House amendment on May 30, 2009, by the |
|
|
following vote: Yeas 31, Nays 0. |
|
|
|
| |
| |
______________________________ |
| |
Secretary of the Senate |
| |
|
|
I hereby certify that S.B. No. 1492 passed the House, with |
|
|
amendment, on May 27, 2009, by the following vote: Yeas 143, |
|
|
Nays 5, one present not voting. |
|
|
|
| |
| |
______________________________ |
| |
Chief Clerk of the House |
| |
|
|
|
| |
|
|
Approved: |
|
|
|
|
|
______________________________ |
|
|
Date |
|
|
|
|
|
|
|
|
______________________________ |
|
|
Governor |