| 1 | 1 | | By: Turner of Harris H.B. No. 3357 |
|---|
| 2 | 2 | | |
|---|
| 3 | 3 | | |
|---|
| 4 | 4 | | A BILL TO BE ENTITLED |
|---|
| 5 | 5 | | AN ACT |
|---|
| 6 | 6 | | relating to mergers and acquisitions in the electric industry. |
|---|
| 7 | 7 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
|---|
| 8 | 8 | | SECTION 1. Subchapter D, Chapter 39, Utilities Code, is |
|---|
| 9 | 9 | | amended by adding Section 39.159 to read as follows: |
|---|
| 10 | 10 | | Sec. 39.159. Mergers of Power Generation Companies and |
|---|
| 11 | 11 | | Retail Electric Providers. |
|---|
| 12 | 12 | | (a) An owner of electric generation facilities that offers |
|---|
| 13 | 13 | | electricity for sale in the state and proposes to merge, |
|---|
| 14 | 14 | | consolidate, or otherwise become affiliated with a retail electric |
|---|
| 15 | 15 | | provider that offers electricity for sale to retail customers in |
|---|
| 16 | 16 | | this state shall obtain the approval of the commission before |
|---|
| 17 | 17 | | closing, if the owner of the electric generation facilities owns or |
|---|
| 18 | 18 | | controls more than ten percent (10%) of the electricity generated |
|---|
| 19 | 19 | | in an ERCOT zone. |
|---|
| 20 | 20 | | (b) Upon the filing of an application with the commission, |
|---|
| 21 | 21 | | the commission shall investigate the transaction to determine |
|---|
| 22 | 22 | | whether the action is consistent with the public interest. In |
|---|
| 23 | 23 | | reaching its determination, the commission shall consider whether |
|---|
| 24 | 24 | | the transaction will: |
|---|
| 25 | 25 | | (1) adversely affect the health or safety of customers |
|---|
| 26 | 26 | | or employees; |
|---|
| 27 | 27 | | (2) result in the transfer of jobs of citizens of this |
|---|
| 28 | 28 | | state to workers domiciled outside the state; |
|---|
| 29 | 29 | | (3) result in the decline of service; |
|---|
| 30 | 30 | | (4) result in the potential for impairment of |
|---|
| 31 | 31 | | competition, cross-subsidization, customer confusion or any |
|---|
| 32 | 32 | | preferential advantage, access or treatment for either the power |
|---|
| 33 | 33 | | generation company, the retail electric provider or the combination |
|---|
| 34 | 34 | | thereof; or |
|---|
| 35 | 35 | | (5) otherwise be adverse to the public interest. |
|---|
| 36 | 36 | | (c) If the commission finds that the transaction as proposed |
|---|
| 37 | 37 | | would not be in the public interest, the commission may reject the |
|---|
| 38 | 38 | | transaction or may condition approval of the transaction on such |
|---|
| 39 | 39 | | conditions as the commission may deem reasonable and necessary to |
|---|
| 40 | 40 | | protect the public interest. |
|---|
| 41 | 41 | | (d) Nothing in this chapter shall be construed to confer |
|---|
| 42 | 42 | | immunity from state or federal antitrust laws. This chapter is |
|---|
| 43 | 43 | | intended to complement other state and federal antitrust |
|---|
| 44 | 44 | | provisions. Therefore, antitrust remedies may also be sought in |
|---|
| 45 | 45 | | state or federal court to remedy anticompetitive activities. |
|---|
| 46 | 46 | | (e) The commission has the authority to adopt such rules as |
|---|
| 47 | 47 | | may be necessary to implement this section. |
|---|
| 48 | 48 | | (f) This section shall apply to any merger, consolidation or |
|---|
| 49 | 49 | | affiliation proposed after January 1, 2009. No such merger, |
|---|
| 50 | 50 | | consolidation or affiliation shall be effective until approved by |
|---|
| 51 | 51 | | the commission at least 120 days after the effective date of this |
|---|
| 52 | 52 | | act. |
|---|
| 53 | 53 | | SECTION 2. This Act takes effect immediately if it receives |
|---|
| 54 | 54 | | a vote of two-thirds of all the members elected to each house, as |
|---|
| 55 | 55 | | provided by Section 39, Article III, Texas Constitution. If this |
|---|
| 56 | 56 | | Act does not receive the votes necessary for immediate effect, this |
|---|
| 57 | 57 | | Act takes effect September 1, 2009. |
|---|