Texas 2009 - 81st Regular

Texas House Bill HB3245 Compare Versions

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1	1	By: Solomons H.B. No. 3245
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to consumer protections within the electricity markets.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Section 39.101(h), Utilities Code, is amended to
9	9	read as follows:
10	10	(h) A retail electric provider, power generation company,
11	11	aggregator, or other entity that provides retail electric service
12	12	may not disconnect service to a residential customer during an
13	13	extreme weather emergency or on a weekend day. The entity providing
14	14	service shall defer collection of the full payment of bills that are
15	15	due during an extreme weather emergency until after the emergency
16	16	is over and shall work with customers to establish a pay schedule
17	17	for deferred bills. For purposes of this subsection, "extreme
18	18	weather emergency" means a period when: the previous day's highest
19	19	temperature did not exceed 32 degrees Fahrenheit and the
20	20	temperature is predicted to remain at or below that level for the
21	21	next 24 hours according to the nearest National Weather Service
22	22	reports; or a day for which the National Weather Service forecasts
23	23	that the heat index will reach or exceed 100 degrees Fahrenheit in
24	24	any part of a county in the relevant service territory; or a period
25	25	when, on any one of the previous two calendar days, the National
26	26	Weather Service observes a heat index of 101 degrees Fahrenheit or
27	27	more in any part of a county in the relevant service territory. [the
28	28	National Weather Service issues a heat advisory for any county in
29	29	the relevant service territory, or when such an advisory has been
30	30	issued on any one of the previous two calendar days.]
31	31	SECTION 2. Section 39.151, Utilities Code, is amended by
32	32	amending Subsection (g), to read as follows:
33	33	(g) To maintain certification as an independent
34	34	organization under this section, the organization must operate a
35	35	regional electrical network that is contained wholly within the
36	36	borders of the State of Texas. Such an organization's governing
37	37	body must be composed of persons specified by this section and
38	38	selected in accordance with formal bylaws or protocols of the
39	39	organization. The bylaws or protocols must be approved by the
40	40	commission and must reflect the input of the commission. The
41	41	bylaws must [specify the process by which appropriate stakeholders
42	42	elect members and, for unaffiliated members,] prescribe the
43	43	professional qualifications necessary for selection as a member of
44	44	the organization and[. T]the bylaws must require the use of a
45	45	professional search firm to identify candidates for membership of
46	46	unaffiliated members. The process must allow for commission input
47	47	in identifying candidates. The governing body must be composed of:
48	48	(1) the [chairman] three sitting commissioners of the
49	49	commission as [an] ex officio nonvoting members;
50	50	(2) the counsellor as an ex officio voting member
51	51	representing residential and small commercial consumer interests;
52	52	(3) the chief executive officer of the independent
53	53	organization as an ex officio voting member;
54	54	(4) [six market participants elected by their
55	55	respective market segments to serve one-year terms, with:
56	56	[(A) one representing independent generators;
57	57	[(B) one representing investor-owned utilities;
58	58	[(C) one representing power marketers;
59	59	[(D) one representing retail electric providers;
60	60	[(E) one representing municipally owned
61	61	utilities; and
62	62	[(F) one representing electric cooperatives;
63	63	[(5)] one member representing industrial consumer
64	64	interests and elected by the industrial consumer market segment to
65	65	serve a one-year term;
66	66	(6) one member representing large commercial consumer
67	67	interests selected in accordance with the bylaws to serve a
68	68	one-year term; and
69	69	(7) [five] nine members unaffiliated with any market
70	70	segment and selected by the other members of the governing body to
71	71	serve three-year terms.
72	72	SECTION 3. Subchapter D, Chapter 39, Utilities Code,
73	73	Section 39.157 (a) is amended to read as follows:
74	74	(a) The commission shall monitor market power associated
75	75	with the generation, transmission, distribution, and sale of
76	76	electricity in this state. On a finding that market power abuses or
77	77	other violations of this section are occurring, the commission
78	78	shall require reasonable mitigation of the market power by ordering
79	79	the construction of additional transmission or distribution
80	80	facilities, by seeking an injunction or civil penalties as
81	81	necessary to eliminate or to remedy the market power abuse or
82	82	violation as authorized by Chapter 15, by imposing an
83	83	administrative penalty as authorized by Chapter 15, or by
84	84	suspending, revoking, or amending a certificate or registration as
85	85	authorized by Section 39.356. Section 15.024(c) does not apply to
86	86	an administrative penalty imposed under this section. For purposes
87	87	of this subchapter, market power abuses are practices by persons
88	88	possessing market power that are unreasonably discriminatory or
89	89	tend to unreasonably restrict, impair, or reduce the level of
90	90	competition, including practices that tie unregulated products or
91	91	services to regulated products or services or unreasonably
92	92	discriminate in the provision of regulated services. For purposes
93	93	of this section, "market power abuses" include predatory pricing,
94	94	withholding of production, precluding entry, and collusion. A
95	95	violation of the code of conduct provided by Subsection (d) that
96	96	materially impairs the ability of a person to compete in a
97	97	competitive market shall be deemed to be an abuse of market power.
98	98	The possession of a high market share in a market open to
99	99	competition may not, of itself, be deemed to be an abuse of market
100	100	power; however, this sentence shall not affect the application of
101	101	state and federal antitrust laws. The possession of a low market
102	102	share within the power region may not, by itself, be deemed as a
103	103	sufficient condition to preclude a finding that an investor owner
104	104	generator engaged in an abuse of market power.
105	105	SECTION 4. Subchapter D, Chapter 39, Utilities Code,
106	106	Section 39.157 (a) is amended to read as follows:
107	107	(a) The commission shall monitor market power associated
108	108	with the generation, transmission, distribution, and sale of
109	109	electricity in this state. On a finding that market power abuses or
110	110	other violations of this section are occurring, the commission
111	111	shall require reasonable mitigation of the market power by ordering
112	112	the construction of additional transmission or distribution
113	113	facilities, by seeking an injunction or civil penalties as
114	114	necessary to eliminate or to remedy the market power abuse or
115	115	violation as authorized by Chapter 15, by imposing an
116	116	administrative penalty as authorized by Chapter 15, or by
117	117	suspending, revoking, or amending a certificate or registration as
118	118	authorized by Section 39.356. The commission shall permit affected
119	119	customers, including political subdivisions, retail electric
120	120	providers and commercial power users to participate in enforcement
121	121	proceedings alleging market power abuses or manipulation of the
122	122	wholesale market. The commission shall order refunds be made to end
123	123	users adversely impacted by findings of market power abuse or
124	124	manipulation of the wholesale market. Notwithstanding any action
125	125	or inaction by the commission on an allegation of market power abuse
126	126	or manipulation of the wholesale market, private parties may seek
127	127	remedies in any appropriate forum. The Filed Rate Doctrine shall
128	128	not be a defense in any private party suit that alleges market power
129	129	abuse or manipulation of the wholesale market. Section 15.024(c)
130	130	does not apply to an administrative penalty imposed under this
131	131	section. For purposes of this subchapter, market power abuses are
132	132	practices by persons possessing market power that are unreasonably
133	133	discriminatory or tend to unreasonably restrict, impair, or reduce
134	134	the level of competition, including practices that tie unregulated
135	135	products or services to regulated products or services or
136	136	unreasonably discriminate in the provision of regulated services.
137	137	For purposes of this section, "market power abuses" include
138	138	predatory pricing, withholding of production, precluding entry,
139	139	and collusion. A violation of the code of conduct provided by
140	140	Subsection (d) that materially impairs the ability of a person to
141	141	compete in a competitive market shall be deemed to be an abuse of
142	142	market power. The possession of a high market share in a market
143	143	open to competition may not, of itself, be deemed to be an abuse of
144	144	market power; however, this sentence shall not affect the
145	145	application of state and federal antitrust laws.
146	146	SECTION 5. Sections 37.051(a), 37.053(a), 37.055, 37.057,
147	147	and 37.151, Utilities Code, are amended to read as follows:
148	148	Sec. 37.051. CERTIFICATE REQUIRED. (a) An person
149	149	[electric utility] may not directly or indirectly provide service
150	150	to the public under a franchise or permit unless the person
151	151	[utility] first obtains from the commission a certificate that
152	152	states that the public convenience and necessity requires or will
153	153	require the installation, operation, or extension of the service.
154	154	(d) A certificate may be granted to a person under this
155	155	subsection for a facility used solely for the transmission of
156	156	electricity.
157	157	Sec. 37.053. APPLICATION FOR CERTIFICATE. (a) A person
158	158	[An electric utility] that wants to obtain or amend a certificate
159	159	must submit an application to the commission.
160	160	Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) a person
161	161	[An electric utility] that wants to exercise a right or privilege
162	162	under a franchise or permit that the person [utility] anticipates
163	163	obtaining but has not been granted may apply to the commission for a
164	164	preliminary order under this section.
165	165	(b) The commission may issue a preliminary order declaring
166	166	that the commission, on application and under commission rules,
167	167	will grant the requested certificate on terms the commission
168	168	designates, after the person [electric utility] obtains the
169	169	franchise or permit.
170	170	(c) The commission shall grant the certificate on
171	171	presentation of evidence satisfactory to the commission that the
172	172	person [electric utility] has obtained the franchise or permit.
173	173	Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
174	174	FACILITY. The commission may grant a certificate for a new
175	175	transmission facility to any qualified applicant that meets the
176	176	requirements of this subchapter. The commission must approve or
177	177	deny an application for a certificate for a new transmission
178	178	facility not later than the first anniversary of the date the
179	179	application is filed. If the commission does not approve or deny
180	180	the application on or before that date, a party may seek a writ of
181	181	mandamus in a district court of Travis County to compel the
182	182	commission to decide on the application.
183	183	Sec. 37.151. PROVISION OF SERVICE. Except as provided by
184	184	this section, Section 37.152, and Section 37.153, a certificate
185	185	holder, other than those granted a certificate pursuant to Section
186	186	37.051(d), shall:
187	187	(1) serve every consumer in the utility's certificated
188	188	area; and
189	189	(2) provide continuous and adequate service in that
190	190	area.
191	191	SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is
192	192	amended by adding Section 39.925 to read as follows:
193	193	Sec. 39.925. NODAL IMPLEMENTATION. An independent
194	194	organization under this section shall not allow any charges or
195	195	costs associated with a nodal wholesale market design or its
196	196	implementation to be passed to the retail customers. The wholesale
197	197	companies may recover the nodal wholesale market design and
198	198	implementation costs only from costs savings realized from the
199	199	nodal system. The commission is authorized and directed to monitor
200	200	the nodal wholesale market system and an independent organization
201	201	under this section shall insure that all monetary and other
202	202	material information is shared with the commission. The commission
203	203	shall determine when costs recovery is complete. After cost
204	204	recovery is complete, any future monetary savings realized by the
205	205	wholesale companies as a result of the nodal wholesale market
206	206	design must be passed to the retail customers as determined by the
207	207	commission. The commission shall enforce this section with civil
208	208	penalties.
209	209	SECTION 7. Subchapter Z, Chapter 39, Utilities Code, is
210	210	amended by adding Section 39.926 to read as follows:
211	211	Sec. 39.926. Electricity providers shall provide a real
212	212	time quote from the NYMEX for the Henry Hub spot gas price. The
213	213	quote shall be placed prominently on the electricity provider's
214	214	homepage. A graph showing the daily gas price for the previous five
215	215	years shall also be provided with a comparison of electricity
216	216	prices charged by the provider. This real time quote shall
217	217	establish the rate to be charged by electricity providers and will
218	218	enforce direct pass through of non-bypassable charges (both up and
219	219	down) to the consumer.
220	220	SECTION 8. Section 39.107(h), Utilities Code, is amended to
221	221	read as follows:
222	222	(h) The commission shall establish a non-bypassable
223	223	surcharge for an electric utility or transmission and distribution
224	224	utility to use to recover reasonable and necessary costs incurred
225	225	in deploying advanced metering and meter information networks to
226	226	residential customers and nonresidential customers other than
227	227	those required by the independent system operator to have an
228	228	interval data recorder meter. The commission shall ensure that the
229	229	nonbypassable surcharge reflects a deployment of advanced meters
230	230	that is no more than one-third of the utility's total meters over
231	231	each calendar year and shall ensure that the nonbypassable
232	232	surcharge does not result in the utility recovering more than its
233	233	actual, fully allocated meter and meter information network costs.
234	234	The expenses must be allocated to the customer classes receiving
235	235	the services, based on the electric utility's most recently
236	236	approved tariffs. An electric utility or transmission and
237	237	distribution utility that deploys advanced meter and meter
238	238	information networks shall seek to obtain and utilize funds,
239	239	including grants, loans, and loan guarantees, made available by the
240	240	federal government if such funds would lower the overall cost of
241	241	deployment. The commission shall reflect the funds obtained by the
242	242	electric utility or transmission and distribution utility when
243	243	establishing the surcharge required by this subsection, including
244	244	timely ordering reductions to surcharges approved prior to the
245	245	receipt of the funds.
246	246	SECTION 9. Section 39.904, Utilities Code, is amended by
247	247	adding Subsection (h-1) to read as follows:
248	248	(h-1) An electric utility, transmission and distribution
249	249	utility, or river authority that has been designated by the
250	250	commission to construct transmission capacity pursuant to
251	251	Subsection (g) shall seek to obtain and utilize funds, including
252	252	grants, loans, and loan guarantees, made available by the federal
253	253	government if such funds would lower the overall cost of
254	254	construction. The commission shall reflect the funds obtained by
255	255	the electric utility, transmission and distribution utility, or
256	256	river authority when establishing or modifying the rates of the
257	257	electric utility or transmission and distribution utility,
258	258	including timely ordering reductions to rates approved prior to the
259	259	receipt of the funds.
260	260	SECTION 10. Subchapter C, Chapter 39, Utilities Code, is
261	261	amended by adding Section 39.107(i) to read as follows:
262	262	(i) Electric providers shall state per unit cost of smart
263	263	meters for residential and business on billing statements and the
264	264	company website. Customers shall only be charged for the actual
265	265	cost of a smart meter. The actual cost of the meter is the amount
266	266	the provider paid to the manufacturer. Consumers shall have the
267	267	option of making either a one time payment for the full cost of the
268	268	meter or a recurring monthly fee. Providers must file with the PUC
269	269	a payment schedule for smart meters which clearly states the cost,
270	270	proposed monthly fee, and date certain when smart meter fee ends.
271	271	Providers charging more than the actual price the provider paid are
272	272	subject to fines and license revocation.
273	273	SECTION 11. Subchapter E, Chapter 12, Utilities Code, is
274	274	amended by adding Section 12.204 to read as follows:
275	275	Sec. 12.204. INTERNET FOR HEARINGS AND MEETINGS. The
276	276	commission shall make publicly accessible without charge live
277	277	Internet video of all public hearings and meetings of the
278	278	commission for viewing from the Internet website found at
279	279	http://www.puc.state.tx.us.
280	280	SECTION 12. Section 39.1511, Utilities Code, is amended by
281	281	adding Subsection (c) to read as follows:
282	282	(c) The commission shall ensure that an independent
283	283	organization certified under this section makes publicly
284	284	accessible without charge live Internet video of all public
285	285	hearings and meetings subject to this section for viewing from an
286	286	Internet website.
287	287	SECTION 13. The change in law made by this Act applies to a
288	288	hearing or meeting held on or after the effective date of this Act.
289	289	A hearing or meeting held before the effective date of this Act is
290	290	governed by the law as it existed immediately before that date, and
291	291	that law is continued in effect for that purpose.
292	292	SECTION 14. An independent organization certified by the
293	293	commission before September 1, 2009, shall modify the
294	294	organization's governing body to comply with Section 39.151(g),
295	295	Utilities Code, as amended by this Act no later than September 1,
296	296	2010. On or after September 1, 2010, the commission may decertify
297	297	an independent organization whose governing body does not comply
298	298	with Section 39.151(g), Utilities Code, as amended by this Act.
299	299	SECTION 15. This Act takes effect immediately if it
300	300	receives a vote of two-thirds of all the members elected to each
301	301	house, as provided by Section 39, Article III, Texas Constitution.
302	302	If this Act does not receive the vote necessary for immediate
303	303	effect, this Act takes effect September 1, 2009.