81R2625 TRH-D
By: Martinez H.B. No. 840
A BILL TO BE ENTITLED
AN ACT
relating to rates charged by an electric utility or retail electric
provider on acquisition by another electric utility or retail
electric provider.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter C, Chapter 39, Utilities Code, is
amended by adding Section 39.110 to read as follows:
Sec. 39.110. RATES OF RETAIL ELECTRIC PROVIDER ON
ACQUISITION BY ANOTHER RETAIL ELECTRIC PROVIDER. A retail electric
provider that acquires another retail electric provider shall:
(1) in relation to a customer of the acquired retail
electric provider who received service under a term contract,
continue to charge the customer the rates specified in the contract
for the remaining term of the contract; and
(2) in relation to a customer of the acquired retail
electric provider who did not receive service under a term
contract:
(A) continue, for at least 90 days, to charge
that customer the rates charged by the acquired retail electric
provider at the time of acquisition if the rates of the acquired
retail electric provider at the time of acquisition are lower than
the rates charged by the acquiring retail electric provider; or
(B) extend the rates of the acquiring retail
electric provider to that customer if the rates charged by the
acquiring retail electric provider at the time of acquisition are
lower than the rates charged by the acquired retail electric
provider.
SECTION 2. Section 39.915, Utilities Code, is amended by
amending Subsection (b) and adding Subsection (b-1) to read as
follows:
(b) The commission shall approve a transaction under
Subsection (a) if the commission finds that the transaction is in
the public interest. For a transaction involving the acquisition of
one electric utility by another electric utility, the commission
may find the transaction to be in the public interest only if the
acquiring utility:
(1) in relation to a customer of the acquired utility
who received services under a term contract, agrees to continue to
charge the customer the rates specified in the contract for the
remaining term of the contract; and
(2) in relation to a customer of the acquired utility
who did not receive service under a term contract, agrees to:
(A) continue, for at least 90 days, to charge
that customer the rates charged by the acquired utility at the time
of acquisition if the rates of the acquired utility at the time of
acquisition are lower than the rates charged by the acquiring
utility; or
(B) extend the rates of the acquiring utility to
that customer if the rates charged by the acquiring utility at the
time of acquisition are lower than the rates charged by the acquired
utility.
(b-1) In making its determination of whether a transaction
is in the public interest, the commission shall consider whether
the transaction will adversely affect the reliability of service,
availability of service, or cost of service of the electric utility
or transmission and distribution utility. The commission shall
make the determination concerning a transaction under this
subsection not later than the 180th day after the date the
commission receives the relevant report. If the commission has not
made a determination before the 181st day after that date, the
transaction is considered approved.
SECTION 3. The changes in law made by Section 39.110,
Utilities Code, as added by this Act, apply only to a retail
electric provider acquired by another retail electric provider on
or after the effective date of this Act. A retail electric provider
acquired after the effective date of this Act is subject to the law
in effect on the date of acquisition, and that law is continued in
effect for that purpose.
SECTION 4. The changes in law made by this Act to Section
39.915, Utilities Code, apply only to a report submitted to the
Public Utility Commission of Texas on or after the effective date of
this Act. A report submitted to the Public Utility Commission of
Texas before the effective date of this Act is subject to the law in
effect on the date the report is submitted, and that law is
continued in effect for that purpose.
SECTION 5. This Act takes effect September 1, 2009.