| 1 | 1 | | 81R10356 JJT-D |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 1837 |
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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 regulation of electric services. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter E, Chapter 39, Utilities Code, is |
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| 10 | 10 | | amended by adding Sections 39.207, 39.208, and 39.209 to read as |
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| 11 | 11 | | follows: |
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| 12 | 12 | | Sec. 39.207. PRICE CEILING FOR RETAIL ELECTRIC PROVIDERS. |
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| 13 | 13 | | Notwithstanding any other provision of this chapter, the commission |
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| 14 | 14 | | by rule shall establish a mechanism to ensure that the price for |
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| 15 | 15 | | electric service charged by retail electric providers does not |
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| 16 | 16 | | exceed a fair price that allows for a reasonable profit for the |
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| 17 | 17 | | retail electric provider, considering relevant market prices for |
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| 18 | 18 | | electricity purchased for resale. |
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| 19 | 19 | | Sec. 39.208. RELIABILITY OF RETAIL ELECTRIC PROVIDERS. |
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| 20 | 20 | | Notwithstanding any other provision of this chapter, the commission |
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| 21 | 21 | | by rule shall establish a mechanism to ensure that each retail |
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| 22 | 22 | | electric provider is financially and organizationally reliable to |
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| 23 | 23 | | provide services the retail electric provider offers. The |
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| 24 | 24 | | commission may require a retail electric provider to disclose |
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| 25 | 25 | | financial and business organization information as necessary for |
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| 26 | 26 | | the commission to evaluate and ensure the provider's reliability. |
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| 27 | 27 | | Sec. 39.209. FORMATION AND REGULATION OF INTEGRATED |
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| 28 | 28 | | UTILITIES IN COMPETITIVE AREAS. (a) Notwithstanding any other |
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| 29 | 29 | | provision of this chapter, the commission by rule shall establish a |
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| 30 | 30 | | mechanism to allow transmission and distribution utilities or power |
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| 31 | 31 | | generation companies to acquire transmission, distribution, or |
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| 32 | 32 | | generation assets and subsequently offer electric services to |
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| 33 | 33 | | retail customers as an integrated utility. |
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| 34 | 34 | | (b) The commission shall provide for an integrated utility |
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| 35 | 35 | | formed in a competitive area to offer electric service to retail |
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| 36 | 36 | | customers as a market competitor at a rate regulated by the |
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| 37 | 37 | | commission that does not exceed a fair price that allows for a |
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| 38 | 38 | | reasonable profit for the integrated utility. |
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| 39 | 39 | | SECTION 2. This Act takes effect immediately if it receives |
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| 40 | 40 | | a vote of two-thirds of all the members elected to each house, as |
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| 41 | 41 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 42 | 42 | | Act does not receive the vote necessary for immediate effect, this |
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| 43 | 43 | | Act takes effect September 1, 2009. |
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