S.B. No. 1938
 
 
 
 
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.
         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.
 
 
 
 
 
  ______________________________ ______________________________
     President of the Senate Speaker of the House     
 
         I hereby certify that S.B. No. 1938 passed the Senate on
  April 17, 2019, by the following vote:  Yeas 30, Nays 1.
 
 
  ______________________________
  Secretary of the Senate    
 
         I hereby certify that S.B. No. 1938 passed the House on
  May 7, 2019, by the following vote:  Yeas 141, Nays 5, one present
  not voting.
 
 
  ______________________________
  Chief Clerk of the House   
 
 
 
  Approved:
 
  ______________________________ 
              Date
 
 
  ______________________________ 
            Governor