Texas 2009 - 81st Regular

Texas Senate Bill SB547 Compare Versions

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1	1	S.B. No. 547
2	2
3	3
4	4	AN ACT
5	5	relating to transition to competition in the Southwestern Electric
6	6	Power Company service area.
7	7	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	8	SECTION 1. Chapter 39, Utilities Code, is amended by adding
9	9	Subchapter K to read as follows:
10	10	SUBCHAPTER K. TRANSITION TO COMPETITION FOR CERTAIN
11	11	AREAS OUTSIDE OF ERCOT
12	12	Sec. 39.501. APPLICABILITY. (a) This subchapter applies
13	13	to an investor-owned electric utility:
14	14	(1) that is operating solely outside of ERCOT in areas
15	15	of this state that were included in the Southwest Power Pool on
16	16	January 1, 2008;
17	17	(2) that was not affiliated with the Southeastern
18	18	Electric Reliability Council on January 1, 2008; and
19	19	(3) to which Subchapter I does not apply.
20	20	(b) The legislature finds that an electric utility subject
21	21	to this subchapter is unable at this time to offer fair competition
22	22	and reliable service to all retail customer classes in the area
23	23	served by the utility. As a result, the introduction of retail
24	24	competition for such an electric utility is delayed until fair
25	25	competition and reliable service are available to all retail
26	26	customer classes as determined under this subchapter.
27	27	Sec. 39.502. COST-OF-SERVICE REGULATION. (a) Until the
28	28	date on which an electric utility subject to this subchapter is
29	29	authorized by the commission under Section 39.503(f) to implement
30	30	retail customer choice, the rates of the utility are subject to
31	31	regulation under Chapter 36.
32	32	(b) Until the date on which an electric utility subject to
33	33	this subchapter implements customer choice, the provisions of this
34	34	chapter, other than this subchapter and Sections 39.904 and 39.905,
35	35	do not apply to that utility.
36	36	Sec. 39.503. TRANSITION TO COMPETITION. (a) The events
37	37	prescribed by Subsections (b)-(f) shall be followed to introduce
38	38	retail competition in the service area of an electric utility
39	39	subject to this subchapter. The commission may modify the sequence
40	40	of events required by Subsections (b)-(e), but not the substance of
41	41	the requirements. Full retail competition may not begin in the
42	42	service area of an electric utility subject to this subchapter
43	43	until all actions prescribed by those subsections are completed.
44	44	(b) The first stage for the transition to competition
45	45	consists of the following activities:
46	46	(1) approval of a regional transmission organization
47	47	by the Federal Energy Regulatory Commission for the power region
48	48	that includes the electric utility's service area and commencement
49	49	of independent operation of the transmission network under the
50	50	approved regional transmission organization;
51	51	(2) development of retail market protocols to
52	52	facilitate retail competition; and
53	53	(3) completion of an expedited proceeding to develop
54	54	non-bypassable delivery rates for the customer choice pilot project
55	55	to be implemented under Subsection (c)(1).
56	56	(c) The second stage for the transition to competition
57	57	consists of the following activities:
58	58	(1) initiation of the customer choice pilot project in
59	59	accordance with Section 39.104;
60	60	(2) development of a balancing energy market, a market
61	61	for ancillary services, and a market-based congestion management
62	62	system for the wholesale market in the power region in which the
63	63	regional transmission organization operates; and
64	64	(3) implementation of a seams agreement with adjacent
65	65	power regions to reduce barriers to entry and facilitate
66	66	competition.
67	67	(d) The third stage for the transition to competition
68	68	consists of the following activities:
69	69	(1) the electric utility filing with the commission:
70	70	(A) an application for business separation in
71	71	accordance with Section 39.051;
72	72	(B) an application for unbundled transmission
73	73	and distribution rates in accordance with Section 39.201;
74	74	(C) an application for certification of a
75	75	qualified power region in accordance with Section 39.152; and
76	76	(D) an application for price-to-beat rates in
77	77	accordance with Section 39.202;
78	78	(2) the commission:
79	79	(A) approving a business separation plan for the
80	80	utility;
81	81	(B) setting unbundled transmission and
82	82	distribution rates for the utility;
83	83	(C) certifying a qualified power region, which
84	84	includes conducting a formal evaluation of wholesale market power
85	85	in the region, in accordance with Section 39.152;
86	86	(D) setting price-to-beat rates for the utility;
87	87	and
88	88	(E) determining which competitive energy
89	89	services must be separated from regulated utility activities in
90	90	accordance with Section 39.051; and
91	91	(3) completion of the testing of retail and wholesale
92	92	systems, including those systems necessary for switching customers
93	93	to the retail electric provider of their choice and for settlement
94	94	of wholesale market transactions, by the regional transmission
95	95	organization, the registration agent, and market participants.
96	96	(e) The fourth stage for the transition to competition
97	97	consists of the following activities:
98	98	(1) commission evaluation of the results of the pilot
99	99	project;
100	100	(2) initiation by the electric utility of a capacity
101	101	auction in accordance with Section 39.153 at a time to be determined
102	102	by the commission; and
103	103	(3) separation by the utility of competitive energy
104	104	services from its regulated utility activities, in accordance with
105	105	the commission order approving the separation of competitive energy
106	106	services.
107	107	(f) The fifth stage for the transition to competition
108	108	consists of the following activities:
109	109	(1) evaluation by the commission of whether the
110	110	electric utility can offer fair competition and reliable service to
111	111	all retail customer classes in the area served by the utility, and:
112	112	(A) if the commission concludes that the electric
113	113	utility can offer fair competition and reliable service to all
114	114	retail customer classes in the area served by the utility, the
115	115	commission issuing an order initiating retail competition for the
116	116	utility; and
117	117	(B) if the commission determines that the
118	118	electric utility cannot offer fair competition and reliable service
119	119	to all retail customer classes in the area served by the utility,
120	120	the commission issuing an order further delaying retail competition
121	121	for the utility; and
122	122	(2) on the issuance of an order from the commission
123	123	initiating retail competition for the utility, completion by the
124	124	utility of the business separation and unbundling in accordance
125	125	with the commission order approving the unbundling.
126	126	SECTION 2. This Act takes effect September 1, 2009.
127	127	______________________________ ______________________________
128	128	President of the Senate Speaker of the House
129	129	I hereby certify that S.B. No. 547 passed the Senate on
130	130	April 2, 2009, by the following vote: Yeas 31, Nays 0.
131	131	______________________________
132	132	Secretary of the Senate
133	133	I hereby certify that S.B. No. 547 passed the House on
134	134	May 12, 2009, by the following vote: Yeas 145, Nays 0, two
135	135	present not voting.
136	136	______________________________
137	137	Chief Clerk of the House
138	138	Approved:
139	139	______________________________
140	140	Date
141	141	______________________________
142	142	Governor