| 1 | 1 | | 81R8868 TRH-F |
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| 2 | 2 | | By: Turner of Harris H.B. No. 1620 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the procedure by which prices are established in |
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| 8 | 8 | | competitive wholesale electric energy and capacity markets. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
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| 11 | 11 | | amended by adding Section 39.1516 to read as follows: |
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| 12 | 12 | | Sec. 39.1516. PRICES IN WHOLESALE ELECTRICITY MARKETS. (a) |
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| 13 | 13 | | The legislature finds that a wholesale market in which all sellers |
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| 14 | 14 | | receive a price that is based on the highest price accepted by an |
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| 15 | 15 | | independent organization certified under Section 39.151 is not in |
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| 16 | 16 | | the public interest and is harmful to the availability of just and |
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| 17 | 17 | | reasonable electric rates in areas with competitive energy markets. |
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| 18 | 18 | | As a result, an independent organization certified under Section |
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| 19 | 19 | | 39.151 may not establish the price paid to a seller in a wholesale |
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| 20 | 20 | | market based on the highest bid accepted by the organization in |
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| 21 | 21 | | order to meet the energy or capacity requirements of the market. |
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| 22 | 22 | | (b) The commission shall adopt rules establishing a |
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| 23 | 23 | | wholesale market consistent with these findings. The rules must |
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| 24 | 24 | | ensure that the price paid to a seller in a wholesale market |
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| 25 | 25 | | reflects the average price of the cost of all forms of energy |
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| 26 | 26 | | brought to the market. |
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| 27 | 27 | | SECTION 2. The Public Utility Commission of Texas shall |
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| 28 | 28 | | adopt rules consistent with Section 39.1516, Utilities Code, as |
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| 29 | 29 | | added by this Act, not later than July 1, 2010. |
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| 30 | 30 | | SECTION 3. This Act takes effect immediately if it receives |
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| 31 | 31 | | a vote of two-thirds of all the members elected to each house, as |
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| 32 | 32 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 33 | 33 | | Act does not receive the vote necessary for immediate effect, this |
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| 34 | 34 | | Act takes effect September 1, 2009. |
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