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