| 1 | 1 | | By: Ogden S.B. No. 681 |
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| 2 | 2 | | |
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| 3 | 3 | | |
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| 4 | 4 | | A BILL TO BE ENTITLED |
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| 5 | 5 | | AN ACT |
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| 6 | 6 | | relating to the ability of electric utilities to provide electric |
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| 7 | 7 | | service during a major power outage. |
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| 8 | 8 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 9 | 9 | | SECTION 1. Subchapter D, Chapter 38, Utilities Code, is |
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| 10 | 10 | | amended by adding Section 38.073 to read as follows: |
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| 11 | 11 | | Sec. 38.073. AUTHORITY OF COMMISSION DURING AN EMERGENCY. |
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| 12 | 12 | | (a) On a declaration of a natural disaster or other emergency by |
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| 13 | 13 | | the governor, the commission may require an electric utility, |
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| 14 | 14 | | municipally owned utility, electric cooperative, qualifying |
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| 15 | 15 | | facility, power generation company, exempt wholesale generator, or |
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| 16 | 16 | | power marketer to sell electricity to an electric utility, |
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| 17 | 17 | | municipally owned utility, or electric cooperative that is unable |
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| 18 | 18 | | to supply power to meet customer demand due to the natural disaster |
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| 19 | 19 | | or other emergency. Any plant, property, equipment, or other items |
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| 20 | 20 | | used to receive or deliver electricity under this subsection are |
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| 21 | 21 | | used and useful in delivering service to the public, and the |
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| 22 | 22 | | commission shall allow timely recovery for the costs of those |
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| 23 | 23 | | items. The commission may order an electric utility, municipally |
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| 24 | 24 | | owned utility, or electric cooperative to provide interconnection |
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| 25 | 25 | | service to another electric utility, municipally owned utility, or |
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| 26 | 26 | | electric cooperative to facilitate a sale of electricity under this |
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| 27 | 27 | | section. If the commission does not order the sale of electricity |
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| 28 | 28 | | during a declared emergency as described by this subsection, the |
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| 29 | 29 | | commission shall promptly submit to the legislature a report |
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| 30 | 30 | | describing the reasons why the commission did not make that order. |
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| 31 | 31 | | (b) If an entity receives electricity under Subsection (a), |
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| 32 | 32 | | the receiving entity shall reimburse the supplying entity for the |
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| 33 | 33 | | actual cost of providing the electricity. The entity receiving the |
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| 34 | 34 | | electricity is responsible for any transmission and distribution |
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| 35 | 35 | | service charges specifically incurred in relation to providing the |
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| 36 | 36 | | electricity. |
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| 37 | 37 | | (c) An entity that pays for electricity received under |
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| 38 | 38 | | Subsection (b) and that is regulated by the commission may fully |
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| 39 | 39 | | recover the cost of the electricity in a timely manner by: |
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| 40 | 40 | | (1) including the cost in the entity's fuel cost under |
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| 41 | 41 | | Section 36.203; or |
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| 42 | 42 | | (2) notwithstanding Section 36.201, imposing a |
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| 43 | 43 | | different surcharge. |
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| 44 | 44 | | SECTION 2. (a) Not later than November 1, 2009, the Public |
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| 45 | 45 | | Utility Commission of Texas shall conduct and complete a study to |
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| 46 | 46 | | evaluate: |
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| 47 | 47 | | (1) the locations in this state that are most likely to |
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| 48 | 48 | | experience a natural disaster or other emergency; |
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| 49 | 49 | | (2) the ability of each entity described by Subsection |
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| 50 | 50 | | (a), Section 38.073, Utilities Code, as added by this Act, to comply |
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| 51 | 51 | | with that section in the event of a natural disaster or other |
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| 52 | 52 | | emergency; |
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| 53 | 53 | | (3) any steps an entity described by Subsection (a), |
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| 54 | 54 | | Section 38.073, Utilities Code, as added by this Act, should take to |
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| 55 | 55 | | prepare to comply with that section; and |
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| 56 | 56 | | (4) the potential for distributed generation, |
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| 57 | 57 | | including renewable power with battery backup and combined heat and |
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| 58 | 58 | | power systems, to strengthen reliability of electric service during |
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| 59 | 59 | | a natural disaster or other emergency. |
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| 60 | 60 | | (b) An entity described by Subsection (a), Section 38.073, |
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| 61 | 61 | | Utilities Code, as added by this Act, shall comply with any order |
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| 62 | 62 | | issued by the Public Utility Commission of Texas under that |
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| 63 | 63 | | subsection while the study required by Subsection (a) of this |
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| 64 | 64 | | section is conducted. |
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| 65 | 65 | | (c) The Public Utility Commission of Texas shall prepare a |
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| 66 | 66 | | report based on the study conducted under Subsection (a) of this |
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| 67 | 67 | | section. The report must include any recommendations the |
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| 68 | 68 | | commission considers advisable in relation to the implementation of |
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| 69 | 69 | | and compliance with Section 38.073, Utilities Code, as added by |
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| 70 | 70 | | this Act. The commission may include the report in the report |
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| 71 | 71 | | required by Section 31.003, Utilities Code. |
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| 72 | 72 | | SECTION 3. This Act takes effect immediately if it receives |
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| 73 | 73 | | a vote of two-thirds of all the members elected to each house, as |
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| 74 | 74 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 75 | 75 | | Act does not receive the vote necessary for immediate effect, this |
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| 76 | 76 | | Act takes effect September 1, 2009. |
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