By: Davis S.B. No. 2588
A BILL TO BE ENTITLED
AN ACT
relating to certain protections for customers in the restructured
electric services market.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.101, Utilities Code, is amended by
amending Subsection (h) to read as follows:
(h) A retail electric provider, power generation company,
aggregator, or other entity that provides retail electric service
may not disconnect service to a residential customer during an
extreme weather emergency or on a weekend day. The entity providing
service shall defer collection of the full payment of bills that are
due during an extreme weather emergency until after the emergency
is over and shall work with customers to establish a pay schedule
for deferred bills. For purposes of this subsection, "extreme
weather emergency" means [a period when]:
(1) a period when the previous day's highest
temperature did not exceed 32 degrees Fahrenheit and the
temperature is predicted to remain at or below that level of the
next 24 hours according to the nearest National Weather Service
reports; [or]
(2) a day for which the National Weather Service
forecasts that the [issues a] heat index will reach or exceed 105
degrees Fahrenheit in [advisory for] any part of a county in the
relevant service territory;[,] or
(3) a period when, [such an advisory has been issued]
on any one of the previous two calendar days, the National Weather
Service observes a heat index of 105 degrees Fahrenheit or more in
any part of a county in the relevant service territory.
SECTION 2. Section 39.151(c), Utilities Code, is amended to
read as follows:
(c) The commission shall certify an independent
organization or organizations to perform the functions prescribed
by this section. The commission shall apply the provisions of this
section and Sections 39.1511, 39.1512, [and] 39.1515, and 39.1516
so as to avoid conflict with a ruling of a federal regulatory body.
SECTION 3. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1516 to read as follows:
Sec. 39.1516. RETAIL ELECTRIC MARKET MONITOR. (a) An
independent organization certified under Section 39.151 shall
contract with an entity selected by the commission to act as the
commission's retail electric market monitor to detect and prevent
market manipulation strategies, unfair, misleading, or deceptive
practices and to recommend measures to enhance the efficiency of
the retail market.
(b) The independent organization shall provide to the
personnel of the retail market monitor:
(1) full access to the organization's records that
concern operations, settlement, and reliability of the retail
market; and
(2) other support and cooperation the commission
determines is necessary for the retail market monitor to perform
the retail market monitor's functions.
(c) The independent organization shall use money from the
rate authorized by Section 39.151(e) to pay for the retail market
monitor's activities.
(d) The commission is responsible for ensuring that the
retail market monitor has the resources, expertise, and authority
necessary to monitor the retail electric market effectively and
shall adopt rules and perform oversight of the retail market
monitor as necessary. The retail market monitor shall operate
under the supervision and oversight of the commission. The
commission shall retain all enforcement authority conferred under
this title, and this section may not be construed to confer
enforcement authority on the retail market monitor or to authorize
the commission to delegate the commission's enforcement authority
to the retail market monitor. The commission by rule shall define:
(1) the retail market monitor's monitoring
responsibilities, including reporting obligations and limitations;
(2) the standards for funding the retail market
monitor, including staffing requirements;
(3) qualifications for personnel of the retail market
monitor; and
(4) ethical standards for the retail market monitor
and the personnel of the retail market monitor.
(e) In adopting rules governing the standards for funding
the retail market monitor, the commission shall consult with a
subcommittee of the independent organization's governing body to
receive information on how money is or should be spent for market
monitoring functions. Rules governing ethical standards must
include provisions designed to ensure that the personnel of the
retail market monitor are professionally and financially
independent from market participants. The commission shall develop
and implement policies that clearly separate the policymaking
responsibilities of the commission and the monitoring, analysis,
and reporting responsibilities of the retail market monitor.
(f) The retail market monitor immediately shall report
directly to the commission any potential market manipulations and
any discovered or potential violations of commission rules or rules
of the independent organization.
(g) The personnel of the retail market monitor may
communicate with commission staff on any matter without
restriction.
(h) The retail market monitor annually shall submit to the
commission and the independent organization a report that
identifies market design flaws and recommends methods to correct
the flaws. The commission and the independent organization shall
review the report and evaluate whether changes to rules of the
commission or the independent organization should be made.
SECTION 4. Section 39.157, Utilities Code, is amended by
amending Subsection (a) and adding Subsection (a-1) 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 one or any combination of the following:
(1) ordering the construction of additional
transmission or distribution facilities;
(2) [, 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;
(3) [, by] imposing an administrative penalty as
authorized by Chapter 15;
(4) ordering refunds to affected parties pursuant to
Section 17.157;
(5) with regard to the wholesale market, ordering
refunds to affected parties in a manner established by the
commission; or
(6) [, or by] suspending, revoking, or amending a
certificate or registration as authorized by Section 39.356.
(a-1) The commission shall permit the office, in exercising
its powers to represent residential and small commercial consumers,
to participate in enforcement proceedings to seek refunds for
alleged market power abuses or manipulation of the wholesale
market. 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 5. Subchapter D, Chapter 39, Utilities Code, is
amended by adding Section 39.1575 to read as follows:
Sec. 39.1575. INVESTIGATORY AUTHORITY OVER RETAIL PRICES.
(a) The commission shall investigate whether a retail electric
provider is abusing market power or engaging in unfair, misleading,
or deceptive practices. Retail electric providers shall cooperate
with the commission in any investigation and shall provide
information requested.
(b) The commission may assess administrative penalties
under Section 15.023 for any violation discovered under this
section.
SECTION 6. Subchapter Z, Chapter 39, Utilities Code, is
amended by adding Sections 39.928 and 39.929 to read as follows:
Sec. 39.928. COST OF NODAL MARKET IMPLEMENTATION. An
independent organization certified under Section 39.151 may not
pass through to a retail customer or retail electric provider a cost
or charge associated with nodal wholesale market design
implementation.
Sec. 39.929. PUBLICATION OF NATURAL GAS FUEL AND ELECTRIC
ENERGY PRICING INFORMATION. (a) The commission shall publish on
the Internet websites http://www.puc.state.tx.us and
http://www.powertochoose.org charts or provide a link that
compares the prices of:
(1) natural gas;
(2) real-time or balancing electric energy; and
(3) retail electricity.
(b) The commission shall provide that the charts be updated
at least once each business day that the commission's offices are
open.
SECTION 7. The Public Utility Commission of Texas shall
adopt rules to implement the changes in law made by this Act as
quickly as practicable.
SECTION 8. 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.