Texas House Bill HB4233

Texas 2009 - 81st Regular

Caption

Relating to the delay of retail electric competition in the areas of the state covered by the Southeastern Electric Reliability Council and to the recovery of certain transmission costs by electric utilities in those areas.

Impact

The modification to Section 36.209 of the Utilities Code, along with the addition of Section 39.4515, signifies a protective measure for areas not currently engaged in retail competition. By preventing premature shifts towards competition, the bill seeks to provide stability for electric utilities operating in these regions, which may not have the necessary infrastructure or competitive market conditions to support such changes effectively. As a result, utilities may have more predictability regarding their operational environment, which could ultimately benefit consumers in the short term by maintaining existing service frameworks.

Summary

House Bill 4233 aims to address the regulation of retail electric competition specifically within areas of Texas that fall under the Southeastern Electric Reliability Council (SERC). The bill stipulates that the Public Utility Commission of Texas cannot implement or consider the implementation of retail electric competition in these SERC areas unless explicitly mandated by subsequent legislation. It also emphasizes that these areas must remain within the SERC framework, thereby avoiding transitions to different regulatory environments that could complicate operations and service delivery.

Contention

Potential points of contention surrounding HB 4233 may revolve around concerns from stakeholders who advocate for more competitive electric markets in Texas. Proponents of retail competition argue that such regulatory changes could lead to enhanced choices and lower prices for consumers, allowing them to select their preferred electricity providers. Opposition to the bill may emerge from interests that fear the risks associated with competition in areas not yet prepared for such shifts. These debates center on finding the right balance between consumer choice and ensuring reliable service in less densely populated or economically diverse regions.