| 1 | 1 | | 2017S0445-E 03/09/17 |
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| 2 | 2 | | By: Davis of Dallas H.B. No. 4080 |
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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 certificate of convenience and necessity for |
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| 8 | 8 | | transmission-only utilities in the State of Texas. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Sections 37.051(d) and (e), Utilities Code, are |
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| 11 | 11 | | amended to read as follows: |
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| 12 | 12 | | (d) A certificate may be granted to an electric utility or |
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| 13 | 13 | | other person under this section for a facility used as part of the |
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| 14 | 14 | | transmission system serving a [the ERCOT] power region located |
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| 15 | 15 | | wholly or in part within Texas solely for the transmission of |
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| 16 | 16 | | electricity. |
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| 17 | 17 | | (e) The commission may consider an application filed by a |
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| 18 | 18 | | person not currently certificated as an electric utility for a |
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| 19 | 19 | | certificate of convenience and necessity to construct transmission |
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| 20 | 20 | | capacity that serves a [the ERCOT] power region located wholly or in |
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| 21 | 21 | | part within Texas. Before granting a certificate under this |
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| 22 | 22 | | section, the commission must find, after notice and hearing, that: |
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| 23 | 23 | | (1) the applicant has the technical ability, financial |
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| 24 | 24 | | ability, and sufficient resources in this state to own, operate, |
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| 25 | 25 | | and maintain reliable transmission facilities; |
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| 26 | 26 | | (2) the applicant has the resources and ability to |
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| 27 | 27 | | comply with commission rules, requirements of the independent |
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| 28 | 28 | | organization certified under Section 39.151 for the [ERCOT] power |
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| 29 | 29 | | region, and requirements of the National Electric Reliability |
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| 30 | 30 | | Council applicable to the provisions of transmission service; and |
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| 31 | 31 | | (3) for an application filed by a person that is not an |
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| 32 | 32 | | electric utility, granting the application will not adversely |
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| 33 | 33 | | affect wholesale transmission rates, as compared to the rates |
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| 34 | 34 | | projected to be charged if an existing electric utility were to |
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| 35 | 35 | | build the transmission facility. |
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| 36 | 36 | | SECTION 2. This Act takes effect immediately if it receives |
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| 37 | 37 | | a vote of two-thirds of all the members elected to each house, as |
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| 38 | 38 | | provided by Section 39, Article III, Texas Constitution. If this |
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| 39 | 39 | | Act does not receive the vote necessary for immediate effect, this |
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| 40 | 40 | | Act takes effect September 1, 2017. |
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