H.B. No. 3309
AN ACT
relating to certificates of convenience and necessity for the
construction of transmission facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 37, Utilities Code, is
amended by adding Section 37.0541 to read as follows:
Sec. 37.0541. CONSOLIDATION OF CERTAIN PROCEEDINGS. The
commission shall consolidate the proceeding on an application to
obtain or amend a certificate of convenience and necessity for the
construction of a transmission line with the proceeding on another
application to obtain or amend a certificate of convenience and
necessity for the construction of a transmission line if it is
apparent from the applications or a motion to intervene in either
proceeding that the transmission lines that are the subject of the
separate proceedings share a common point of interconnection. This
section does not apply to a proceeding on an application for a
certificate of convenience and necessity for a transmission line to
serve a competitive renewable energy zone as part of a plan
developed by the commission under Section 39.904(g)(2).
SECTION 2. Section 37.051, Utilities Code, is amended by
amending Subsection (a) and adding Subsections (d), (e), and (f) to
read as follows:
(a) An electric utility or other person may not directly or
indirectly provide service to the public under a franchise or
permit unless the utility or other person first obtains from the
commission a certificate that states that the public convenience
and necessity requires or will require the installation, operation,
or extension of the service.
(d) A certificate may be granted to an electric utility or
other person under this section for a facility used as part of the
transmission system serving the ERCOT power region solely for the
transmission of electricity.
(e) The commission may consider an application filed by a
person not currently certificated as an electric utility for a
certificate of convenience and necessity to construct transmission
capacity that serves the ERCOT power region. Before granting a
certificate under this section, the commission must find, after
notice and hearing, that:
(1) the applicant has the technical ability, financial
ability, and sufficient resources in this state to own, operate,
and maintain reliable transmission facilities;
(2) the applicant has the resources and ability to
comply with commission rules, requirements of the independent
organization certified under Section 39.151 for the ERCOT power
region, and requirements of the National Electric Reliability
Council applicable to the provisions of transmission service; and
(3) for an application filed by a person that is not an
electric utility, granting the application will not adversely
affect wholesale transmission rates, as compared to the rates
projected to be charged if an existing electric utility were to
build the transmission facility.
(f) The commission shall consider the requirements of
Subsection (e) to have been met by an electric utility or other
person that:
(1) is selected by the commission as a transmission
provider under a plan adopted by the commission under Section
39.904 not later than September 1, 2009; and
(2) before the certificate is issued, provides to the
commission a detailed plan regarding the offices, personnel, and
other resources the electric utility or other person will have in
this state to ensure provision of continuous and adequate
transmission service.
SECTION 3. Section 37.053(a), Utilities Code, is amended to
read as follows:
(a) An electric utility or other person that wants to obtain
or amend a certificate must submit an application to the
commission.
SECTION 4. Sections 37.055, 37.057, and 37.151, Utilities
Code, are amended to read as follows:
Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
electric utility or other person that wants to exercise a right or
privilege under a franchise or permit that the utility or other
person anticipates obtaining but has not been granted may apply to
the commission for a preliminary order under this section.
(b) The commission may issue a preliminary order declaring
that the commission, on application and under commission rules,
will grant the requested certificate on terms the commission
designates, after the electric utility or other person obtains the
franchise or permit.
(c) The commission shall grant the certificate on
presentation of evidence satisfactory to the commission that the
electric utility or other person has obtained the franchise or
permit.
Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
FACILITY. The commission may grant a certificate for a new
transmission facility to a qualified applicant that meets the
requirements of this subchapter. The commission must approve or
deny an application for a certificate for a new transmission
facility not later than the first anniversary of the date the
application is filed. If the commission does not approve or deny
the application on or before that date, a party may seek a writ of
mandamus in a district court of Travis County to compel the
commission to decide on the application.
Sec. 37.151. PROVISION OF SERVICE. Except as provided by
this section, Section 37.152, and Section 37.153, a certificate
holder, other than one granted a certificate under Section
37.051(d), shall:
(1) serve every consumer in the utility's certificated
area; and
(2) provide continuous and adequate service in that
area.
SECTION 5. 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I certify that H.B. No. 3309 was passed by the House on April
24, 2009, by the following vote: Yeas 138, Nays 0, 1 present, not
voting; that the House refused to concur in Senate amendments to
H.B. No. 3309 on May 29, 2009, and requested the appointment of a
conference committee to consider the differences between the two
houses; and that the House adopted the conference committee report
on H.B. No. 3309 on May 31, 2009, by the following vote: Yeas 143,
Nays 0, 2 present, not voting.
______________________________
Chief Clerk of the House
I certify that H.B. No. 3309 was passed by the Senate, with
amendments, on May 27, 2009, by the following vote: Yeas 31, Nays
0; at the request of the House, the Senate appointed a conference
committee to consider the differences between the two houses; and
that the Senate adopted the conference committee report on H.B. No.
3309 on May 31, 2009, by the following vote: Yeas 31, Nays 0.
______________________________
Secretary of the Senate
APPROVED: __________________
Date
__________________
Governor