Texas House Bill HB3357

Texas 2009 - 81st Regular

Caption

Relating to mergers and acquisitions in the electric industry.

Impact

The bill is designed to protect the public interest by requiring the regulatory commission to evaluate each proposed merger or acquisition. Key considerations include the potential impact on public health and safety, job retention for Texas residents, service quality, competition in the market, and overall customer experience. By placing these checks in place, the law seeks to deter any mergers that could harm consumers or lead to anti-competitive practices within the electric market.

Summary

House Bill 3357 aims to regulate mergers and acquisitions in the electric industry within Texas. Specifically, the bill mandates that owners of electric generation facilities, which offer electricity for sale in Texas and propose to merge or affiliate with a retail electric provider, must obtain approval from the Texas Public Utility Commission before finalizing any transactions. This requirement is triggered if the generation facility owner controls more than 10% of electricity generated in any given ERCOT zone, thereby ensuring that significant market players are subject to state oversight.

Contention

Notable points of contention around HB3357 involve the balance between regulatory oversight and market freedom. Advocates for the bill argue that such measures are necessary for consumer protection and market stability, preventing consolidation that could disadvantage customers. However, critics may contend that these regulations could stifle potential beneficial mergers that promote efficiency or innovation. Thus, the discussions surrounding the bill may highlight a divide between those prioritizing regulatory control and those advocating for a more laissez-faire approach in the electric sector.