Texas 2009 - 81st Regular

Texas House Bill HB1464 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6076 TJS-D
2	2	By: Kolkhorst H.B. No. 1464
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the right of certain municipalities to offer electric
8	8	services within the service area of another certificate holder.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subchapter C, Chapter 37, Utilities Code, is
11	11	amended by adding Section 37.103 to read as follows:
12	12	Sec. 37.103. RIGHT OF CERTAIN MUNICIPALITIES TO OFFER
13	13	SERVICES IN THE SERVICE AREA OF ANOTHER CERTIFICATE HOLDER. (a)
14	14	This section applies only to a municipality that:
15	15	(1) is located outside of ERCOT;
16	16	(2) has a population of less than 10,000; and
17	17	(3) is located in an area that has historically
18	18	experienced serious and prolonged power outages caused by
19	19	hurricanes.
20	20	(b) Notwithstanding any other law, the governing body of a
21	21	municipality by ordinance may provide for the municipality to offer
22	22	retail electric service and related services in the corporate
23	23	limits and the extraterritorial jurisdiction of the municipality,
24	24	regardless of whether the corporate limits or extraterritorial
25	25	jurisdiction is in an existing certificated service area of a
26	26	holder of a certificate of convenience and necessity issued by the
27	27	state.
28	28	(c) The governing body of a municipality may adopt an
29	29	ordinance under Subsection (b) only if a majority of the
30	30	municipality's voters voting at an election held for that purpose
31	31	approve a proposition to authorize the governing body to provide
32	32	for the municipality to offer the services.
33	33	(d) On the approval of voters under Subsection (c), the
34	34	governing body of a municipality may apply to the commission for a
35	35	certificate of convenience and necessity to provide retail electric
36	36	service and related services to customers residing in the corporate
37	37	limits or extraterritorial jurisdiction of the municipality.
38	38	Notwithstanding Section 37.056, after notice and hearing the
39	39	commission shall grant the certificate if the municipality
40	40	demonstrates a likelihood that:
41	41	(1) the municipality can provide service at reasonable
42	42	prices; and
43	43	(2) reliability of service and responses to natural
44	44	disasters and other emergencies in the corporate limits or
45	45	extraterritorial jurisdiction of the municipality will improve if
46	46	the certificate is granted.
47	47	(e) Notwithstanding Section 37.059, on issuing a
48	48	certificate to a municipality under this section, the commission
49	49	shall revoke a certificate held by an existing certificate holder
50	50	to the extent of any overlap with an area included in the
51	51	certificate granted under this section.
52	52	(f) The commission by rule shall provide standards under
53	53	which a municipality offering retail electric service and related
54	54	services under this section shall compensate the holder of a
55	55	certificate if the certificate is revoked under Subsection (e) for
56	56	losses that result from the holder forfeiting or selling its
57	57	facilities.
58	58	(g) The commission may not require a municipality granted a
59	59	certificate of convenience and necessity under this subchapter to
60	60	purchase electricity from a retail electric provider, power
61	61	generation company, or exempt wholesale generator.
62	62	SECTION 2. This Act takes effect immediately if it receives
63	63	a vote of two-thirds of all the members elected to each house, as
64	64	provided by Section 39, Article III, Texas Constitution. If this
65	65	Act does not receive the vote necessary for immediate effect, this
66	66	Act takes effect September 1, 2009.