81R10634 TJS-D
By: Farabee H.B. No. 2851
A BILL TO BE ENTITLED
AN ACT
relating to the right of certain entities to intervene in
enforcement actions regarding market power abuse.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.157(a), Utilities Code, is amended to
read as follows:
(a) The commission shall monitor market power associated
with the generation, transmission, distribution, and sale of
electricity in this state. On a finding that market power abuses or
other violations of this section are or may be occurring, the
commission shall commence an appropriate enforcement proceeding
with the goal of ending the market power abuse. An enforcement
proceeding under this section is a contested case in which
interested parties, including interested municipalities,
commercial customers, retail electric providers, and other
entities as determined by the commission by rule, have a right to
intervene. On finding that market power abuse has occurred, the
commission shall require reasonable mitigation of the market power
by ordering the construction of additional transmission or
distribution facilities, by seeking an injunction or civil
penalties as necessary to eliminate or to remedy the market power
abuse or violation as authorized by Chapter 15, by imposing an
administrative penalty as authorized by Chapter 15, or by
suspending, revoking, or amending a certificate or registration as
authorized by Section 39.356. Section 15.024(c) does not apply to
an administrative penalty imposed under this section. For purposes
of this subchapter, market power abuses are practices by persons
possessing market power that are unreasonably discriminatory or
tend to unreasonably restrict, impair, or reduce the level of
competition, including practices that tie unregulated products or
services to regulated products or services or unreasonably
discriminate in the provision of regulated services. For purposes
of this section, "market power abuses" include predatory pricing,
withholding of production, precluding entry, and collusion. A
violation of the code of conduct provided by Subsection (d) that
materially impairs the ability of a person to compete in a
competitive market shall be deemed to be an abuse of market power.
The possession of a high market share in a market open to
competition may not, of itself, be deemed to be an abuse of market
power; however, this sentence shall not affect the application of
state and federal antitrust laws.
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.