81R11687 JJT-D
By: Elkins H.B. No. 3546
A BILL TO BE ENTITLED
AN ACT
relating to a study of the provision of retail electric service and
the regulation of components of the electric utilities industry.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. (a) The Public Utility Commission of Texas shall
conduct a study of the conditions under which electric service is
provided to retail customers in this state.
(b) The state energy conservation office shall assist the
commission as requested.
(c) The study must examine:
(1) prices and reliability of retail electric service
in this state, including a comparison of prices and degrees of
reliability of service in:
(A) urban and rural areas of this state;
(B) different geographic regions of this state;
and
(C) regulated and deregulated retail electric
service areas of this state;
(2) prices and degrees of reliability of retail
electric service in this state as compared to the prices and degrees
of reliability of service in other states with regulated,
deregulated, or mixed regulated and deregulated retail electric
service; and
(3) factors related to differences in prices and
degrees of reliability of retail electric service shown by
comparisons made under Subdivisions (1) and (2) of this subsection,
including:
(A) differences in the generation and
transmission of electric power among various urban, rural,
regulated, and deregulated areas, including:
(i) differences in the ages of generating
and transmission facilities prevalent in the areas considered;
(ii) differences in the types of generation
and transmission technologies prevalent in the areas considered;
(iii) differences in fuel types used for
generation of electric power in the areas considered; and
(iv) other factors the commission considers
relevant, including economies of scale, power transmission
distances, rates of adoption of distributed generation
technologies and renewable energy technologies for electric power
generation, rates of adoption of demand response, load management,
and energy efficiency measures; and
(B) differences in the structure of retail
electric service markets among various urban, rural, regulated, and
deregulated areas.
SECTION 2. The Public Utility Commission of Texas, as part
of the study conducted under this Act, shall examine and compare the
history of retail electric service prices and degrees of
reliability in the following states:
(1) Arizona;
(2) Arkansas;
(3) California;
(4) Illinois;
(5) Montana;
(6) Nevada;
(7) New Mexico;
(8) Ohio;
(9) Oregon;
(10) Pennsylvania;
(11) Virginia; and
(12) any other state that has pursued retail electric
service restructuring to provide for customer choice but that
subsequently has significantly amended its laws on the subject.
SECTION 3. (a) The Public Utility Commission of Texas,
based on information collected and conclusions drawn from the study
conducted under Sections 1 and 2 of this Act, shall develop
alternative retail electric service market restructuring plans
under which retail electric service in this state or in certain
areas of this state may be made the most affordable and reliable. A
plan developed under this section must include specific legislative
or rulemaking proposals necessary or convenient to implement the
plan.
(b) A plan developed under Subsection (a) of this section
may provide for re-regulation of one or more components of the
retail electric service market in one or more areas of this state in
which customer choice has been implemented.
(c) The Public Utility Commission of Texas, based on
information collected and conclusions drawn from the study
conducted under Sections 1 and 2 of this Act, shall determine
whether retail electric service in those areas of this state in
which customer choice has not been implemented will likely be more
affordable and reliable if customer choice is delayed or not
implemented. The commission shall make recommendations for any
necessary legislative or rulemaking action the commission
determines would make retail electric service the most affordable
and reliable in those areas.
SECTION 4. (a) The Public Utility Commission of Texas shall
prepare a report on the information collected and conclusions drawn
as a result of the study conducted under Sections 1 and 2 of this Act
and the recommendations made under Section 3 of this Act as a result
of the study.
(b) The Public Utility Commission of Texas shall:
(1) present the report prepared under this section to:
(A) the governor;
(B) the lieutenant governor;
(C) the speaker of the house of representatives;
and
(D) each standing or interim committee of the
legislature that has jurisdiction over the commission or a
component of retail electric service provision in this state; and
(2) publish the report on the commission's Internet
website for public access.
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.