Texas 2009 - 81st Regular

Texas Senate Bill SB1492 Compare Versions

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1	1	S.B. No. 1492
2	2
3	3
4	4	AN ACT
5	5	relating to the delay of retail electric competition in the areas of
6	6	the state covered by the Southeastern Electric Reliability Council
7	7	and to the recovery of certain transmission costs by electric
8	8	utilities in those areas and to the provision of power during a
9	9	natural disaster or declared emergency.
10	10	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11	SECTION 1. Subsection (a), Section 36.209, Utilities Code,
12	12	is amended to read as follows:
13	13	(a) This section applies only to an electric utility that
14	14	operates solely outside of ERCOT in areas of this state included in
15	15	the Southeastern Electric Reliability Council, the Southwest Power
16	16	Pool, or the Western Electricity Coordinating Council and that owns
17	17	or operates transmission facilities.
18	18	SECTION 2. Subchapter D, Chapter 38, Utilities Code, is
19	19	amended by adding Section 38.073 to read as follows:
20	20	Sec. 38.073. AUTHORITY OF COMMISSION DURING AN EMERGENCY.
21	21	(a) On a declaration of a natural disaster or other emergency by
22	22	the governor, the commission may require an electric utility,
23	23	municipally owned utility, electric cooperative, qualifying
24	24	facility, power generation company, exempt wholesale generator, or
25	25	power marketer to sell electricity to an electric utility,
26	26	municipally owned utility, or electric cooperative that is unable
27	27	to supply power to meet customer demand due to the natural disaster
28	28	or other emergency. Any plant, property, equipment, or other items
29	29	used to receive or deliver electricity under this subsection are
30	30	used and useful in delivering service to the public, and the
31	31	commission shall allow timely recovery for the costs of those
32	32	items. The commission may order an electric utility, municipally
33	33	owned utility, or electric cooperative to provide interconnection
34	34	service to another electric utility, municipally owned utility, or
35	35	electric cooperative to facilitate a sale of electricity under this
36	36	section. If the commission does not order the sale of electricity
37	37	during a declared emergency as described by this subsection, the
38	38	commission shall promptly submit to the legislature a report
39	39	describing the reasons why the commission did not make that order.
40	40	(b) If an entity receives electricity under Subsection (a),
41	41	the receiving entity shall reimburse the supplying entity for the
42	42	actual cost of providing the electricity. The entity receiving the
43	43	electricity is responsible for any transmission and distribution
44	44	service charges specifically incurred in relation to providing the
45	45	electricity.
46	46	(c) An entity that pays for electricity received under
47	47	Subsection (b) and that is regulated by the commission may fully
48	48	recover the cost of the electricity in a timely manner by:
49	49	(1) including the cost in the entity's fuel cost under
50	50	Section 36.203; or
51	51	(2) notwithstanding Section 36.201, imposing a
52	52	different surcharge.
53	53	SECTION 3. Section 39.452, Utilities Code, is amended by
54	54	amending Subsection (b) and adding Subsections (i) and (j) to read
55	55	as follows:
56	56	(b) An electric [Notwithstanding Subsection (a), except for
57	57	adjustments authorized by Sections 36.203, 39.454, 39.455, and
58	58	39.456, and except for proceedings and cost recovery mechanisms
59	59	authorized by Sections 39.458-39.463, a person may not file a
60	60	proceeding to change, alter, or revoke any rate offered or charged
61	61	by an electric utility subject to this subchapter before June 30,
62	62	2007, with an effective date no earlier than June 30, 2008. As part
63	63	of a Subchapter C, Chapter 36, rate proceeding, the] utility
64	64	subject to this subchapter shall propose a competitive generation
65	65	tariff to allow eligible customers the ability to contract for
66	66	competitive generation. The commission shall approve, reject, or
67	67	modify the proposed tariff not later than September 1, 2010. The
68	68	tariffs subject to this subsection may not be considered to offer a
69	69	discounted rate or rates under Section 36.007, and the utility's
70	70	rates shall be set, in the proceeding in which the tariff is
71	71	adopted, to recover any costs unrecovered as a result of the
72	72	implementation of the tariff. The commission shall ensure that a
73	73	competitive generation tariff shall not be implemented in a manner
74	74	that harms the sustainability or competitiveness of manufacturers
75	75	that choose not to take advantage of competitive generation.
76	76	Pursuant to the competitive generation tariff, an electric utility
77	77	subject to this subsection shall purchase competitive generation
78	78	service, selected by the customer, and provide the generation at
79	79	retail to the customer. An electric utility subject to this
80	80	subsection shall provide and price retail transmission service,
81	81	including necessary ancillary services, to retail customers who
82	82	choose to take advantage of the competitive generation tariff at a
83	83	rate that is unbundled from the utility's cost of service. Such
84	84	customers shall not be considered wholesale transmission
85	85	customers. Notwithstanding any other provision of this chapter,
86	86	the commission may not issue a decision relating to a competitive
87	87	generation tariff that is contrary to an applicable decision, rule,
88	88	or policy statement of a federal regulatory agency having
89	89	jurisdiction.
90	90	(i) Notwithstanding any other provision of this chapter, if
91	91	the commission has not approved the transition to competition plan
92	92	under this section before January 1, 2009, an electric utility
93	93	subject to this subchapter shall cease all activities relating to
94	94	the transition to competition under this section. The commission
95	95	may, on its own motion or the motion of any affected person,
96	96	initiate a proceeding under Section 39.152 to certify a power
97	97	region to which the utility belongs as a qualified power region when
98	98	the conditions supporting such a proceeding exist. The commission
99	99	may not approve a plan under Subsection (g) until the expiration of
100	100	four years from the time that the commission certifies a power
101	101	region under Subsection (f). If after the expiration of four years
102	102	from the time the commission certifies a power region under
103	103	Subsection (f), and after notice and a hearing, the commission
104	104	determines consistent with the study required by Section 5, S.B.
105	105	No. 1492, Acts of the 81st Legislature, Regular Session, 2009, that
106	106	the electric utility cannot comply with Section 38.073, it shall
107	107	consider approving a plan under Subsection (g).
108	108	(j) Notwithstanding any other provision of this subtitle,
109	109	in awarding a certificate of convenience and necessity or allowing
110	110	cost recovery for purchased power by an electric utility subject to
111	111	this section, the commission shall ensure in its determination that
112	112	the provisions of Sections 37.056(c)(4)(D) and (E) are met and that
113	113	the generating facility or the purchased power agreement satisfies
114	114	the identified reliability needs of the utility.
115	115	SECTION 4. Not later than the 90th day after the effective
116	116	date of this Act, an electric utility operating in the Southeastern
117	117	Electric Reliability Council that is subject to traditional cost of
118	118	service rate regulation and on the effective date of this Act has a
119	119	transition to competition plan on file with the Public Utility
120	120	Commission of Texas shall:
121	121	(1) withdraw the plan from the commission; and
122	122	(2) cease all activities related to the plan.
123	123	SECTION 5. (a) Not later than November 1, 2009, the Public
124	124	Utility Commission of Texas shall conduct and complete a study to
125	125	evaluate:
126	126	(1) the locations in this state that are most likely to
127	127	experience a natural disaster or other emergency;
128	128	(2) the ability of each entity described by Subsection
129	129	(a), Section 38.073, Utilities Code, as added by this Act, to comply
130	130	with that section in the event of a natural disaster or other
131	131	emergency; and
132	132	(3) any steps an entity described by Subsection (a),
133	133	Section 38.073, Utilities Code, as added by this Act, should take to
134	134	prepare to comply with that section.
135	135	(b) An entity described by Subsection (a), Section 38.073,
136	136	Utilities Code, as added by this Act, shall comply with any order
137	137	issued by the Public Utility Commission of Texas under that
138	138	subsection while the study required by Subsection (a) of this
139	139	section is conducted.
140	140	(c) The Public Utility Commission of Texas shall prepare a
141	141	report based on the study conducted under Subsection (a) of this
142	142	section. The report must include any recommendations the
143	143	commission considers advisable in relation to the implementation of
144	144	and compliance with Section 38.073, Utilities Code, as added by
145	145	this Act. The commission may include the report in the report
146	146	required by Section 31.003, Utilities Code.
147	147	SECTION 6. This Act takes effect immediately if it receives
148	148	a vote of two-thirds of all the members elected to each house, as
149	149	provided by Section 39, Article III, Texas Constitution. If this
150	150	Act does not receive the vote necessary for immediate effect, this
151	151	Act takes effect September 1, 2009.
152	152	______________________________ ______________________________
153	153	President of the Senate Speaker of the House
154	154	I hereby certify that S.B. No. 1492 passed the Senate on
155	155	April 28, 2009, by the following vote: Yeas 31, Nays 0; and that
156	156	the Senate concurred in House amendment on May 30, 2009, by the
157	157	following vote: Yeas 31, Nays 0.
158	158	______________________________
159	159	Secretary of the Senate
160	160	I hereby certify that S.B. No. 1492 passed the House, with
161	161	amendment, on May 27, 2009, by the following vote: Yeas 143,
162	162	Nays 5, one present not voting.
163	163	______________________________
164	164	Chief Clerk of the House
165	165	Approved:
166	166	______________________________
167	167	Date
168	168	______________________________
169	169	Governor