| 1 | 1 | | 85R3157 GRM-F |
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| 2 | 2 | | By: Workman H.B. No. 1461 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to the partition and transfer of a geographic portion of |
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| 8 | 8 | | service area certificate of convenience and necessity by |
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| 9 | 9 | | municipally owned electric utility systems. |
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| 10 | 10 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 11 | 11 | | SECTION 1. Subchapter C, Utilities Code, is amended by |
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| 12 | 12 | | adding Section 37.103 to read as follows: |
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| 13 | 13 | | Sec. 37.103. PARTITION AND TRANSFER OF CERTIFICATE FOR |
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| 14 | 14 | | CERTAIN UTILITIES. (a) This section applies only to a municipally |
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| 15 | 15 | | owned electric utility system with 400,000 or more customers that |
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| 16 | 16 | | is owned by a municipality with a population of less than 850,000. |
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| 17 | 17 | | (b) A municipally owned electric utility system shall |
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| 18 | 18 | | identify and transfer to a nonprofit electric cooperative created |
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| 19 | 19 | | under Chapter 161 that serves more than 64,000 members the part of |
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| 20 | 20 | | the system's certificated service area that is not in the |
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| 21 | 21 | | certificated service area of another utility or dually certificated |
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| 22 | 22 | | and that is: |
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| 23 | 23 | | (1) outside the owning municipality's city limits; and |
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| 24 | 24 | | (2) located inside the county in which the owning |
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| 25 | 25 | | municipality is primarily located. |
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| 26 | 26 | | (c) The utility system shall sell to the electric |
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| 27 | 27 | | cooperative that will provide service to the partitioned area at |
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| 28 | 28 | | net book value all of the system's electric distribution assets |
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| 29 | 29 | | attributable to the transferred service area that are used to serve |
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| 30 | 30 | | the area. Generation assets and transmission service facilities |
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| 31 | 31 | | are not subject to sale under this subsection. |
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| 32 | 32 | | (d) The commission shall: |
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| 33 | 33 | | (1) review and approve the identification and transfer |
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| 34 | 34 | | of the service area to ensure compliance with this section; |
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| 35 | 35 | | (2) as necessary, amend or issue certificates of |
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| 36 | 36 | | convenience and necessity to implement the transfer of the service |
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| 37 | 37 | | area; and |
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| 38 | 38 | | (3) identify, oversee, and approve the sale of assets. |
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| 39 | 39 | | (e) This section expires September 1, 2019. |
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| 40 | 40 | | SECTION 2. The Public Utility Commission of Texas shall |
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| 41 | 41 | | ensure that the transfer and sales required by Section 37.103, |
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| 42 | 42 | | Utilities Code, as added by this Act, shall be completed not later |
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| 43 | 43 | | than September 1, 2018. |
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| 44 | 44 | | SECTION 3. This Act takes effect September 1, 2017. |
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