81R8911 JJT-D
By: Burnam H.B. No. 3090
A BILL TO BE ENTITLED
AN ACT
relating to the formation and certification of a new municipally
owned electric utility.
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. FORMATION AND SPECIAL CERTIFICATION OF
MUNICIPALLY OWNED UTILITY. (a) Notwithstanding any other law, the
governing body of a municipality may acquire the infrastructure
necessary for the municipality to offer and provide 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 under this chapter or is in an
area in which customer choice is available as provided by Chapter
39.
(b) To acquire the necessary infrastructure to offer and
provide electric service and related services, a municipality may
exercise the right of eminent domain and may secure the financing
necessary to acquire assets using any money available to the
municipality, including bonds supported by a pledge of ad valorem
taxes, sales and use taxes, or any other municipal revenue.
(c) Before or after a municipality acquires infrastructure
necessary to offer and provide retail electric service and related
services, the governing body of the municipality may apply to the
commission for a special certificate of convenience and necessity
for the municipality to provide retail electric service and related
services to customers residing in the corporate limits or
extraterritorial jurisdiction of the municipality. The
application may be supported by evidence related to the
infrastructure owned by the municipality or by a plan that
describes the manner in which the municipality will acquire
existing infrastructure.
(d) Notwithstanding Section 37.056, after notice and
hearing the commission shall grant the special certificate if the
municipality demonstrates that:
(1) the municipality can provide service with
infrastructure that:
(A) the municipality owns; or
(B) the municipality can acquire in accordance
with the plan presented with the application; and
(2) electric service provided by the municipality in
the municipality's corporate limits and extraterritorial
jurisdiction would be reliable and will serve the public
convenience and safety.
(e) Notwithstanding Sections 37.059 and 37.060, on issuing
a special certificate to a municipality under this section, the
commission shall revoke a certificate of convenience and necessity
held by any other certificate holder to the extent that the existing
certificate covers any part of the area for which the municipality
is granted a special certificate under this section.
(f) Except as provided by Section 39.002, Chapter 39 does
not apply to a municipally owned utility that receives a special
certificate under this section.
(g) The commission by rule shall provide standards and a
mechanism under which a municipality that receives a special
certificate under this section shall compensate the holder of a
certificate of convenience and necessity if any part of the
holder's certificate is revoked under Subsection (e) for losses
that result from the revocation.
SECTION 2. The Public Utility Commission of Texas shall
adopt rules as are necessary to begin accepting applications for
special certificates of convenience and necessity under Section
37.103, Utilities Code, as added by this Act, on or before January
1, 2010.
SECTION 3. This Act takes effect September 1, 2009.