Texas 2009 - 81st Regular

Texas House Bill HB3406 Compare Versions

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1	1	81R24078 TJS-F
2	2	By: Swinford H.B. No. 3406
3	3	Substitute the following for H.B. No. 3406:
4	4	By: Solomons C.S.H.B. No. 3406
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to certificates of convenience and necessity.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Section 37.051, Utilities Code, is amended by
12	12	amending Subsection (a) and adding Subsections (d), (e), and (f) to
13	13	read as follows:
14	14	(a) An electric utility or other person may not directly or
15	15	indirectly provide service to the public under a franchise or
16	16	permit unless the utility or other person first obtains from the
17	17	commission a certificate that states that the public convenience
18	18	and necessity requires or will require the installation, operation,
19	19	or extension of the service.
20	20	(d) A certificate may be granted to an electric utility or
21	21	other person under this section for a facility used as part of the
22	22	transmission system serving the ERCOT power region solely for the
23	23	transmission of electricity.
24	24	(e) The commission may consider an application filed by a
25	25	person not currently certificated as an electric utility for a
26	26	certificate of convenience and necessity to construct transmission
27	27	capacity that serves the ERCOT power region. Before granting a
28	28	certificate under this section, the commission must find, after
29	29	notice and hearing, that:
30	30	(1) the applicant has the technical ability, financial
31	31	ability, and sufficient resources in this state to own, operate,
32	32	and maintain reliable transmission facilities;
33	33	(2) the applicant has the resources and ability to
34	34	comply with commission rules, requirements of the independent
35	35	organization certified under Section 39.151 for the ERCOT power
36	36	region, and requirements of the National Electric Reliability
37	37	Council applicable to the provisions of transmission service; and
38	38	(3) for an application filed by a person that is not an
39	39	electric utility, granting the application will not adversely
40	40	affect wholesale transmission rates, as compared to the rates
41	41	projected to be charged if an existing electric utility were to
42	42	build the transmission facility.
43	43	(f) The commission shall consider the requirements of
44	44	Subsection (e) to have been met by an electric utility or other
45	45	person that:
46	46	(1) is selected by the commission as a transmission
47	47	provider under a plan adopted by the commission under Section
48	48	39.904 not later than September 1, 2009; and
49	49	(2) before the certificate is issued, provides to the
50	50	commission a detailed plan regarding the offices, personnel, and
51	51	other resources the electric utility or other person will have in
52	52	this state to ensure provision of continuous and adequate
53	53	transmission service.
54	54	SECTION 2. Section 37.053(a), Utilities Code, is amended to
55	55	read as follows:
56	56	(a) An electric utility or other person that wants to obtain
57	57	or amend a certificate must submit an application to the
58	58	commission.
59	59	SECTION 3. Sections 37.055, 37.057, and 37.151, Utilities
60	60	Code, are amended to read as follows:
61	61	Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
62	62	electric utility or other person that wants to exercise a right or
63	63	privilege under a franchise or permit that the utility or other
64	64	person anticipates obtaining but has not been granted may apply to
65	65	the commission for a preliminary order under this section.
66	66	(b) The commission may issue a preliminary order declaring
67	67	that the commission, on application and under commission rules,
68	68	will grant the requested certificate on terms the commission
69	69	designates, after the electric utility or other person obtains the
70	70	franchise or permit.
71	71	(c) The commission shall grant the certificate on
72	72	presentation of evidence satisfactory to the commission that the
73	73	electric utility or other person has obtained the franchise or
74	74	permit.
75	75	Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
76	76	FACILITY. The commission may grant a certificate for a new
77	77	transmission facility to a qualified applicant that meets the
78	78	requirements of this subchapter. The commission must approve or
79	79	deny an application for a certificate for a new transmission
80	80	facility not later than the first anniversary of the date the
81	81	application is filed. If the commission does not approve or deny
82	82	the application on or before that date, a party may seek a writ of
83	83	mandamus in a district court of Travis County to compel the
84	84	commission to decide on the application.
85	85	Sec. 37.151. PROVISION OF SERVICE. Except as provided by
86	86	this section, Section 37.152, and Section 37.153, a certificate
87	87	holder, other than those granted a certificate under Section
88	88	37.051(d), shall:
89	89	(1) serve every consumer in the utility's certificated
90	90	area; and
91	91	(2) provide continuous and adequate service in that
92	92	area.
93	93	SECTION 4. This Act takes effect September 1, 2009.