81R6076 TJS-D
By: Kolkhorst H.B. No. 1464
A BILL TO BE ENTITLED
AN ACT
relating to the right of certain municipalities to offer electric
services within the service area of another certificate holder.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 37, Utilities Code, is
amended by adding Section 37.103 to read as follows:
Sec. 37.103. RIGHT OF CERTAIN MUNICIPALITIES TO OFFER
SERVICES IN THE SERVICE AREA OF ANOTHER CERTIFICATE HOLDER. (a)
This section applies only to a municipality that:
(1) is located outside of ERCOT;
(2) has a population of less than 10,000; and
(3) is located in an area that has historically
experienced serious and prolonged power outages caused by
hurricanes.
(b) Notwithstanding any other law, the governing body of a
municipality by ordinance may provide for the municipality to offer
retail electric service and related services in the corporate
limits and the extraterritorial jurisdiction of the municipality,
regardless of whether the corporate limits or extraterritorial
jurisdiction is in an existing certificated service area of a
holder of a certificate of convenience and necessity issued by the
state.
(c) The governing body of a municipality may adopt an
ordinance under Subsection (b) only if a majority of the
municipality's voters voting at an election held for that purpose
approve a proposition to authorize the governing body to provide
for the municipality to offer the services.
(d) On the approval of voters under Subsection (c), the
governing body of a municipality may apply to the commission for a
certificate of convenience and necessity to provide retail electric
service and related services to customers residing in the corporate
limits or extraterritorial jurisdiction of the municipality.
Notwithstanding Section 37.056, after notice and hearing the
commission shall grant the certificate if the municipality
demonstrates a likelihood that:
(1) the municipality can provide service at reasonable
prices; and
(2) reliability of service and responses to natural
disasters and other emergencies in the corporate limits or
extraterritorial jurisdiction of the municipality will improve if
the certificate is granted.
(e) Notwithstanding Section 37.059, on issuing a
certificate to a municipality under this section, the commission
shall revoke a certificate held by an existing certificate holder
to the extent of any overlap with an area included in the
certificate granted under this section.
(f) The commission by rule shall provide standards under
which a municipality offering retail electric service and related
services under this section shall compensate the holder of a
certificate if the certificate is revoked under Subsection (e) for
losses that result from the holder forfeiting or selling its
facilities.
(g) The commission may not require a municipality granted a
certificate of convenience and necessity under this subchapter to
purchase electricity from a retail electric provider, power
generation company, or exempt wholesale generator.
SECTION 2. 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.