By: Swinford H.B. No. 3406
A BILL TO BE ENTITLED
AN ACT
relating to certificates of convenience and necessity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 37.051(a), 37.053(a), 37.055, 37.057,
and 37.151, Utilities Code, are amended to read as follows:
Sec. 37.051. CERTIFICATE REQUIRED. (a) A person [electric
utility] may not directly or indirectly provide service to the
public under a franchise or permit unless the person [utility]
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 a person under this
subsection for a facility used solely for the transmission of
electricity.
Sec. 37.053. APPLICATION FOR CERTIFICATE. (a) A person [An
electric utility] that wants to obtain or amend a certificate must
submit an application to the commission.
Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) A person
[An electric utility] that wants to exercise a right or privilege
under a franchise or permit that the person [utility] 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 person [electric utility] obtains the
franchise or permit.
(c) The commission shall grant the certificate on
presentation of evidence satisfactory to the commission that the
person [electric utility] 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 any 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 those granted a
certificate pursuant to 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 2. 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.