This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

 
 
  S.B. No. 1492
 
 
 
 
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