2009S0407-1 02/18/09
By: Fraser S.B. No. 1772
A BILL TO BE ENTITLED
AN ACT
relating to the authority of the Public Utility Commission of Texas
to order restitution for violations.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.003, Utilities Code, is amended to
read as follows:
Sec. 39.003. CONTESTED CASES. Unless specifically provided
otherwise, each commission proceeding under this chapter, other
than a rulemaking proceeding, report, notification, or
registration, shall be conducted as a contested case and the burden
of proof is on the incumbent electric utility. Any affected party
may file a case for restitution under Section 39.157(a). In any
proceeding involving market power abuse, any affected party shall
be granted the right to intervene.
SECTION 2. Subsection (a), Section 39.157, Utilities Code,
is amended to read as follows:
(a) The commission shall monitor market power associated
with the generation, transmission, distribution, and sale of
electricity in this state. On a finding that market power abuses or
other violations of this section have occurred or are occurring,
the commission shall require reasonable mitigation of the market
power by any combination of the following actions: ordering the
construction of additional transmission or distribution
facilities, [by] seeking an injunction or civil penalties as
necessary to eliminate or to remedy the market power abuse or
violation as authorized by Chapter 15, [by] imposing an
administrative penalty as authorized by Chapter 15, ordering
restitution to those parties affected by the market power abuse, or
[by] suspending, revoking, or amending a certificate or
registration as authorized by Section 39.356. Section 15.024(c)
does not apply to an administrative penalty imposed under this
section. For purposes of this subchapter, market power abuses are
practices by persons possessing market power that are unreasonably
discriminatory or tend to unreasonably restrict, impair, or reduce
the level of competition, including practices that tie unregulated
products or services to regulated products or services or
unreasonably discriminate in the provision of regulated services.
For purposes of this section, "market power abuses" include
predatory pricing, withholding of production, precluding entry,
and collusion. A violation of the code of conduct provided by
Subsection (d) that materially impairs the ability of a person to
compete in a competitive market shall be deemed to be an abuse of
market power. The possession of a high market share in a market
open to competition may not, of itself, be deemed to be an abuse of
market power; however, this sentence shall not affect the
application of state and federal antitrust laws.
SECTION 3. The changes in law made by this Act apply only to
a violation that occurs or continues to occur on or after the
effective date of this Act. A violation that occurred before the
effective date of this Act is covered by the law in effect at the
time the violation occurred, and the former law is continued in
effect for that purpose.
SECTION 4. 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.