By: Ogden S.B. No. 681
A BILL TO BE ENTITLED
AN ACT
relating to the ability of electric utilities to provide electric
service during a major power outage.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter D, Chapter 38, Utilities Code, is
amended by adding Section 38.073 to read as follows:
Sec. 38.073. AUTHORITY OF COMMISSION DURING AN EMERGENCY.
(a) On a declaration of a natural disaster or other emergency by
the governor, the commission may require an electric utility,
municipally owned utility, electric cooperative, qualifying
facility, power generation company, exempt wholesale generator, or
power marketer to sell electricity to an electric utility,
municipally owned utility, or electric cooperative that is unable
to supply power to meet customer demand due to the natural disaster
or other emergency. Any plant, property, equipment, or other items
used to receive or deliver electricity under this subsection are
used and useful in delivering service to the public, and the
commission shall allow timely recovery for the costs of those
items. The commission may order an electric utility, municipally
owned utility, or electric cooperative to provide interconnection
service to another electric utility, municipally owned utility, or
electric cooperative to facilitate a sale of electricity under this
section. If the commission does not order the sale of electricity
during a declared emergency as described by this subsection, the
commission shall promptly submit to the legislature a report
describing the reasons why the commission did not make that order.
(b) If an entity receives electricity under Subsection (a),
the receiving entity shall reimburse the supplying entity for the
actual cost of providing the electricity. The entity receiving the
electricity is responsible for any transmission and distribution
service charges specifically incurred in relation to providing the
electricity.
(c) An entity that pays for electricity received under
Subsection (b) and that is regulated by the commission may fully
recover the cost of the electricity in a timely manner by:
(1) including the cost in the entity's fuel cost under
Section 36.203; or
(2) notwithstanding Section 36.201, imposing a
different surcharge.
SECTION 2. (a) Not later than November 1, 2009, the Public
Utility Commission of Texas shall conduct and complete a study to
evaluate:
(1) the locations in this state that are most likely to
experience a natural disaster or other emergency;
(2) the ability of each entity described by Subsection
(a), Section 38.073, Utilities Code, as added by this Act, to comply
with that section in the event of a natural disaster or other
emergency;
(3) any steps an entity described by Subsection (a),
Section 38.073, Utilities Code, as added by this Act, should take to
prepare to comply with that section; and
(4) the potential for distributed generation,
including renewable power with battery backup and combined heat and
power systems, to strengthen reliability of electric service during
a natural disaster or other emergency.
(b) An entity described by Subsection (a), Section 38.073,
Utilities Code, as added by this Act, shall comply with any order
issued by the Public Utility Commission of Texas under that
subsection while the study required by Subsection (a) of this
section is conducted.
(c) The Public Utility Commission of Texas shall prepare a
report based on the study conducted under Subsection (a) of this
section. The report must include any recommendations the
commission considers advisable in relation to the implementation of
and compliance with Section 38.073, Utilities Code, as added by
this Act. The commission may include the report in the report
required by Section 31.003, Utilities Code.
SECTION 3. 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.