Relating to the partition and transfer of a geographic portion of service area certificate of convenience and necessity by municipally owned electric utility systems.
Impact
If enacted, HB 1461 will streamline the process for municipalities to transfer service areas to cooperatives, which could impact local utility management and oversight. The bill aims to improve service delivery efficiency in regions where municipal utilities might not be well equipped to serve certain outlying areas effectively. The Public Utility Commission of Texas is tasked with reviewing and approving these transfers to ensure compliance with the outlined provisions, aiming for completion by September 1, 2018.
Summary
House Bill 1461 focuses on the partitioning and transfer of service area certificates of convenience and necessity by municipally owned electric utility systems. Specifically, it applies to municipal electric utilities that serve 400,000 or more customers and are located in municipalities with populations below 850,000. The bill mandates these utilities to identify a portion of their service area that is outside their city limits and transfer this area to a nonprofit electric cooperative that serves over 64,000 members. This will involve selling the electric distribution assets related to the transferred area at net book value.
Contention
Notable points of contention surrounding HB 1461 revolve around concerns from stakeholders regarding the implications of transferring service areas. Critics may question the effectiveness of nonprofit cooperatives in managing these newly acquired areas, especially if existing municipal utilities believe they can better serve these regions. Furthermore, there could be apprehensions about the governance and accountability of cooperatives as they gain more responsibility in community electric service management. The set expiration of the section in 2019 adds another layer of urgency and finality to the regulations surrounding these transfers, which could impact long-term planning for both utilities and cooperative entities.
Relating to the amendment of a certificate of convenience and necessity to provide electricity service to certain water control and improvement districts.
Relating to the amendment of a certificate of convenience and necessity to provide electricity service to certain water control and improvement districts.
Relating to information maintained by certain municipally owned utilities that provide electricity services and cable, Internet, or broadband services.
Relating to the issuance or amendment of a certificate of public convenience and necessity that authorizes the construction of an electrical substation.