Texas 2009 - 81st Regular

Texas Senate Bill SB2588 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	By: Davis S.B. No. 2588
2	2
3	3
4	4	A BILL TO BE ENTITLED
5	5	AN ACT
6	6	relating to certain protections for customers in the restructured
7	7	electric services market.
8	8	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	9	SECTION 1. Section 39.101, Utilities Code, is amended by
10	10	amending Subsection (h) to read as follows:
11	11	(h) A retail electric provider, power generation company,
12	12	aggregator, or other entity that provides retail electric service
13	13	may not disconnect service to a residential customer during an
14	14	extreme weather emergency or on a weekend day. The entity providing
15	15	service shall defer collection of the full payment of bills that are
16	16	due during an extreme weather emergency until after the emergency
17	17	is over and shall work with customers to establish a pay schedule
18	18	for deferred bills. For purposes of this subsection, "extreme
19	19	weather emergency" means [a period when]:
20	20	(1) a period when the previous day's highest
21	21	temperature did not exceed 32 degrees Fahrenheit and the
22	22	temperature is predicted to remain at or below that level of the
23	23	next 24 hours according to the nearest National Weather Service
24	24	reports; [or]
25	25	(2) a day for which the National Weather Service
26	26	forecasts that the [issues a] heat index will reach or exceed 105
27	27	degrees Fahrenheit in [advisory for] any part of a county in the
28	28	relevant service territory;[,] or
29	29	(3) a period when, [such an advisory has been issued]
30	30	on any one of the previous two calendar days, the National Weather
31	31	Service observes a heat index of 105 degrees Fahrenheit or more in
32	32	any part of a county in the relevant service territory.
33	33	SECTION 2. Section 39.151(c), Utilities Code, is amended to
34	34	read as follows:
35	35	(c) The commission shall certify an independent
36	36	organization or organizations to perform the functions prescribed
37	37	by this section. The commission shall apply the provisions of this
38	38	section and Sections 39.1511, 39.1512, [and] 39.1515, and 39.1516
39	39	so as to avoid conflict with a ruling of a federal regulatory body.
40	40	SECTION 3. Subchapter D, Chapter 39, Utilities Code, is
41	41	amended by adding Section 39.1516 to read as follows:
42	42	Sec. 39.1516. RETAIL ELECTRIC MARKET MONITOR. (a) An
43	43	independent organization certified under Section 39.151 shall
44	44	contract with an entity selected by the commission to act as the
45	45	commission's retail electric market monitor to detect and prevent
46	46	market manipulation strategies, unfair, misleading, or deceptive
47	47	practices and to recommend measures to enhance the efficiency of
48	48	the retail market.
49	49	(b) The independent organization shall provide to the
50	50	personnel of the retail market monitor:
51	51	(1) full access to the organization's records that
52	52	concern operations, settlement, and reliability of the retail
53	53	market; and
54	54	(2) other support and cooperation the commission
55	55	determines is necessary for the retail market monitor to perform
56	56	the retail market monitor's functions.
57	57	(c) The independent organization shall use money from the
58	58	rate authorized by Section 39.151(e) to pay for the retail market
59	59	monitor's activities.
60	60	(d) The commission is responsible for ensuring that the
61	61	retail market monitor has the resources, expertise, and authority
62	62	necessary to monitor the retail electric market effectively and
63	63	shall adopt rules and perform oversight of the retail market
64	64	monitor as necessary. The retail market monitor shall operate
65	65	under the supervision and oversight of the commission. The
66	66	commission shall retain all enforcement authority conferred under
67	67	this title, and this section may not be construed to confer
68	68	enforcement authority on the retail market monitor or to authorize
69	69	the commission to delegate the commission's enforcement authority
70	70	to the retail market monitor. The commission by rule shall define:
71	71	(1) the retail market monitor's monitoring
72	72	responsibilities, including reporting obligations and limitations;
73	73	(2) the standards for funding the retail market
74	74	monitor, including staffing requirements;
75	75	(3) qualifications for personnel of the retail market
76	76	monitor; and
77	77	(4) ethical standards for the retail market monitor
78	78	and the personnel of the retail market monitor.
79	79	(e) In adopting rules governing the standards for funding
80	80	the retail market monitor, the commission shall consult with a
81	81	subcommittee of the independent organization's governing body to
82	82	receive information on how money is or should be spent for market
83	83	monitoring functions. Rules governing ethical standards must
84	84	include provisions designed to ensure that the personnel of the
85	85	retail market monitor are professionally and financially
86	86	independent from market participants. The commission shall develop
87	87	and implement policies that clearly separate the policymaking
88	88	responsibilities of the commission and the monitoring, analysis,
89	89	and reporting responsibilities of the retail market monitor.
90	90	(f) The retail market monitor immediately shall report
91	91	directly to the commission any potential market manipulations and
92	92	any discovered or potential violations of commission rules or rules
93	93	of the independent organization.
94	94	(g) The personnel of the retail market monitor may
95	95	communicate with commission staff on any matter without
96	96	restriction.
97	97	(h) The retail market monitor annually shall submit to the
98	98	commission and the independent organization a report that
99	99	identifies market design flaws and recommends methods to correct
100	100	the flaws. The commission and the independent organization shall
101	101	review the report and evaluate whether changes to rules of the
102	102	commission or the independent organization should be made.
103	103	SECTION 4. Section 39.157, Utilities Code, is amended by
104	104	amending Subsection (a) and adding Subsection (a-1) to read as
105	105	follows:
106	106	(a) The commission shall monitor market power associated
107	107	with the generation, transmission, distribution, and sale of
108	108	electricity in this state. On a finding that market power abuses or
109	109	other violations of this section have occurred or are occurring,
110	110	the commission shall require reasonable mitigation of the market
111	111	power by one or any combination of the following:
112	112	(1) ordering the construction of additional
113	113	transmission or distribution facilities;
114	114	(2) [, by] seeking an injunction or civil penalties as
115	115	necessary to eliminate or to remedy the market power abuse or
116	116	violation as authorized by Chapter 15;
117	117	(3) [, by] imposing an administrative penalty as
118	118	authorized by Chapter 15;
119	119	(4) ordering refunds to affected parties pursuant to
120	120	Section 17.157;
121	121	(5) with regard to the wholesale market, ordering
122	122	refunds to affected parties in a manner established by the
123	123	commission; or
124	124	(6) [, or by] suspending, revoking, or amending a
125	125	certificate or registration as authorized by Section 39.356.
126	126	(a-1) The commission shall permit the office, in exercising
127	127	its powers to represent residential and small commercial consumers,
128	128	to participate in enforcement proceedings to seek refunds for
129	129	alleged market power abuses or manipulation of the wholesale
130	130	market. Section 15.024(c) does not apply to an administrative
131	131	penalty imposed under this section. For purposes of this
132	132	subchapter, market power abuses are practices by persons possessing
133	133	market power that are unreasonably discriminatory or tend to
134	134	unreasonably restrict, impair, or reduce the level of competition,
135	135	including practices that tie unregulated products or services to
136	136	regulated products or services or unreasonably discriminate in the
137	137	provision of regulated services. For purposes of this section,
138	138	"market power abuses" include predatory pricing, withholding of
139	139	production, precluding entry, and collusion. A violation of the
140	140	code of conduct provided by Subsection (d) that materially impairs
141	141	the ability of a person to compete in a competitive market shall be
142	142	deemed to be an abuse of market power. The possession of a high
143	143	market share in a market open to competition may not, of itself, be
144	144	deemed to be an abuse of market power; however, this sentence shall
145	145	not affect the application of state and federal antitrust laws.
146	146	SECTION 5. Subchapter D, Chapter 39, Utilities Code, is
147	147	amended by adding Section 39.1575 to read as follows:
148	148	Sec. 39.1575. INVESTIGATORY AUTHORITY OVER RETAIL PRICES.
149	149	(a) The commission shall investigate whether a retail electric
150	150	provider is abusing market power or engaging in unfair, misleading,
151	151	or deceptive practices. Retail electric providers shall cooperate
152	152	with the commission in any investigation and shall provide
153	153	information requested.
154	154	(b) The commission may assess administrative penalties
155	155	under Section 15.023 for any violation discovered under this
156	156	section.
157	157	SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is
158	158	amended by adding Sections 39.928 and 39.929 to read as follows:
159	159	Sec. 39.928. COST OF NODAL MARKET IMPLEMENTATION. An
160	160	independent organization certified under Section 39.151 may not
161	161	pass through to a retail customer or retail electric provider a cost
162	162	or charge associated with nodal wholesale market design
163	163	implementation.
164	164	Sec. 39.929. PUBLICATION OF NATURAL GAS FUEL AND ELECTRIC
165	165	ENERGY PRICING INFORMATION. (a) The commission shall publish on
166	166	the Internet websites http://www.puc.state.tx.us and
167	167	http://www.powertochoose.org charts or provide a link that
168	168	compares the prices of:
169	169	(1) natural gas;
170	170	(2) real-time or balancing electric energy; and
171	171	(3) retail electricity.
172	172	(b) The commission shall provide that the charts be updated
173	173	at least once each business day that the commission's offices are
174	174	open.
175	175	SECTION 7. The Public Utility Commission of Texas shall
176	176	adopt rules to implement the changes in law made by this Act as
177	177	quickly as practicable.
178	178	SECTION 8. This Act takes effect immediately if it receives
179	179	a vote of two-thirds of all the members elected to each house, as
180	180	provided by Section 39, Article III, Texas Constitution. If this
181	181	Act does not receive the vote necessary for immediate effect, this
182	182	Act takes effect September 1, 2009.