84R11576 GRM-D By: Keffer H.B. No. 3288 A BILL TO BE ENTITLED AN ACT relating to regulation of congestion charges in the electricity market. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 13.003(a), Utilities Code, is amended to read as follows: (a) The office: (1) shall assess the effect of utility rate changes and other regulatory actions on residential consumers in this state; (2) shall advocate in the office's own name a position determined by the counsellor to be most advantageous to a substantial number of residential consumers; (3) may appear or intervene, as a party or otherwise, as a matter of right on behalf of: (A) residential consumers, as a class, in any proceeding before the commission, including an alternative dispute resolution proceeding; and (B) small commercial consumers, as a class, in any proceeding in which the counsellor determines that small commercial consumers are in need of representation, including an alternative dispute resolution proceeding; (4) may initiate or intervene as a matter of right or otherwise appear in a judicial proceeding: (A) that involves an action taken by an administrative agency in a proceeding, including an alternative dispute resolution proceeding, in which the counsellor is authorized to appear; or (B) in which the counsellor determines that residential electricity consumers or small commercial electricity consumers are in need of representation; (5) is entitled to the same access as a party, other than commission staff, to records gathered by the commission under Section 14.204; (6) is entitled to discovery of any nonprivileged matter that is relevant to the subject matter of a proceeding or petition before the commission; (7) may represent an individual residential or small commercial consumer with respect to the consumer's disputed complaint concerning utility services that is unresolved before the commission; (8) may recommend legislation to the legislature that the office determines would positively affect the interests of residential and small commercial consumers; [and] (9) may advise persons who are interested parties for purposes of Section 37.054 on procedural matters related to proceedings before the commission on an application for a certificate of convenience and necessity filed under Section 37.053; and (10) shall advocate for the allocation of congestion charges in a power region to ensure timely upgrades and development of sufficient transmission and distribution systems designed to provide for congestion relief. SECTION 2. Section 39.001, Utilities Code, is amended by amending Subsection (a) and adding Subsections (d-1) and (d-2) to read as follows: (a) The legislature finds that the production and sale of electricity is not a monopoly warranting regulation of rates, operations, and services and that the public interest in competitive electric markets requires that, except for transmission and distribution services and for the recovery of stranded costs, electric services, congestion charges, and the [their] prices of electric services and congestion charges should be determined by customer choices and the normal forces of competition. As a result, this chapter is enacted to protect the public interest during the transition to and in the establishment of a fully competitive electric power industry. (d-1) The legislature finds that congestion charges impede fair competition for all retail customer classes, do not protect the public interest, disrupt competitive energy services in certain power regions, and arbitrarily discriminate against certain consumers based on their geographic location. (d-2) A regulatory authority, other than the governing body of a municipally owned electric utility that has not opted for customer choice or the body vested with the power to manage and operate a municipally owned electric utility that has not opted for customer choice, shall ensure that the rules it adopts and the orders it issues are designed to: (1) correct the disruptive effects congestion charges have on the competitive market; and (2) impose the least impairment to competition practicable. SECTION 3. This Act takes effect September 1, 2015.