| 1 | 1 | | 81R8911 JJT-D |
|---|
| 2 | 2 | | By: Burnam H.B. No. 3090 |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | |
|---|
| 5 | 5 | | A BILL TO BE ENTITLED |
|---|
| 6 | 6 | | AN ACT |
|---|
| 7 | 7 | | relating to the formation and certification of a new municipally |
|---|
| 8 | 8 | | owned electric utility. |
|---|
| 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. FORMATION AND SPECIAL CERTIFICATION OF |
|---|
| 13 | 13 | | MUNICIPALLY OWNED UTILITY. (a) Notwithstanding any other law, the |
|---|
| 14 | 14 | | governing body of a municipality may acquire the infrastructure |
|---|
| 15 | 15 | | necessary for the municipality to offer and provide retail electric |
|---|
| 16 | 16 | | service and related services in the corporate limits and the |
|---|
| 17 | 17 | | extraterritorial jurisdiction of the municipality, regardless of |
|---|
| 18 | 18 | | whether the corporate limits or extraterritorial jurisdiction is in |
|---|
| 19 | 19 | | an existing certificated service area of a holder of a certificate |
|---|
| 20 | 20 | | of convenience and necessity issued under this chapter or is in an |
|---|
| 21 | 21 | | area in which customer choice is available as provided by Chapter |
|---|
| 22 | 22 | | 39. |
|---|
| 23 | 23 | | (b) To acquire the necessary infrastructure to offer and |
|---|
| 24 | 24 | | provide electric service and related services, a municipality may |
|---|
| 25 | 25 | | exercise the right of eminent domain and may secure the financing |
|---|
| 26 | 26 | | necessary to acquire assets using any money available to the |
|---|
| 27 | 27 | | municipality, including bonds supported by a pledge of ad valorem |
|---|
| 28 | 28 | | taxes, sales and use taxes, or any other municipal revenue. |
|---|
| 29 | 29 | | (c) Before or after a municipality acquires infrastructure |
|---|
| 30 | 30 | | necessary to offer and provide retail electric service and related |
|---|
| 31 | 31 | | services, the governing body of the municipality may apply to the |
|---|
| 32 | 32 | | commission for a special certificate of convenience and necessity |
|---|
| 33 | 33 | | for the municipality to provide retail electric service and related |
|---|
| 34 | 34 | | services to customers residing in the corporate limits or |
|---|
| 35 | 35 | | extraterritorial jurisdiction of the municipality. The |
|---|
| 36 | 36 | | application may be supported by evidence related to the |
|---|
| 37 | 37 | | infrastructure owned by the municipality or by a plan that |
|---|
| 38 | 38 | | describes the manner in which the municipality will acquire |
|---|
| 39 | 39 | | existing infrastructure. |
|---|
| 40 | 40 | | (d) Notwithstanding Section 37.056, after notice and |
|---|
| 41 | 41 | | hearing the commission shall grant the special certificate if the |
|---|
| 42 | 42 | | municipality demonstrates that: |
|---|
| 43 | 43 | | (1) the municipality can provide service with |
|---|
| 44 | 44 | | infrastructure that: |
|---|
| 45 | 45 | | (A) the municipality owns; or |
|---|
| 46 | 46 | | (B) the municipality can acquire in accordance |
|---|
| 47 | 47 | | with the plan presented with the application; and |
|---|
| 48 | 48 | | (2) electric service provided by the municipality in |
|---|
| 49 | 49 | | the municipality's corporate limits and extraterritorial |
|---|
| 50 | 50 | | jurisdiction would be reliable and will serve the public |
|---|
| 51 | 51 | | convenience and safety. |
|---|
| 52 | 52 | | (e) Notwithstanding Sections 37.059 and 37.060, on issuing |
|---|
| 53 | 53 | | a special certificate to a municipality under this section, the |
|---|
| 54 | 54 | | commission shall revoke a certificate of convenience and necessity |
|---|
| 55 | 55 | | held by any other certificate holder to the extent that the existing |
|---|
| 56 | 56 | | certificate covers any part of the area for which the municipality |
|---|
| 57 | 57 | | is granted a special certificate under this section. |
|---|
| 58 | 58 | | (f) Except as provided by Section 39.002, Chapter 39 does |
|---|
| 59 | 59 | | not apply to a municipally owned utility that receives a special |
|---|
| 60 | 60 | | certificate under this section. |
|---|
| 61 | 61 | | (g) The commission by rule shall provide standards and a |
|---|
| 62 | 62 | | mechanism under which a municipality that receives a special |
|---|
| 63 | 63 | | certificate under this section shall compensate the holder of a |
|---|
| 64 | 64 | | certificate of convenience and necessity if any part of the |
|---|
| 65 | 65 | | holder's certificate is revoked under Subsection (e) for losses |
|---|
| 66 | 66 | | that result from the revocation. |
|---|
| 67 | 67 | | SECTION 2. The Public Utility Commission of Texas shall |
|---|
| 68 | 68 | | adopt rules as are necessary to begin accepting applications for |
|---|
| 69 | 69 | | special certificates of convenience and necessity under Section |
|---|
| 70 | 70 | | 37.103, Utilities Code, as added by this Act, on or before January |
|---|
| 71 | 71 | | 1, 2010. |
|---|
| 72 | 72 | | SECTION 3. This Act takes effect September 1, 2009. |
|---|