86R19737 BRG-D
By: King of Parker, Patterson, Harless, H.B. No. 2553
Parker, Hernandez
Substitute the following for H.B. No. 2553:
By: Parker C.S.H.B. No. 2553
A BILL TO BE ENTITLED
AN ACT
relating to regulation of mergers and consolidations of power
generation companies.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 39.158, Utilities Code, is amended by
amending Subsection (a) and adding Subsections (a-1), (a-2), and
(a-3) to read as follows:
(a) A power generation company [An owner of electric
generation facilities] that offers electricity for sale in this
[the] state in a power region open to customer choice and proposes a
transaction to merge, consolidate, or otherwise become affiliated
with another power generation company [owner of electric generation
facilities] that offers electricity for sale in this state in the
same power region shall obtain the approval of the commission
before closing if the merged, consolidated, or affiliated entity
would own and control more than 10 [electricity offered for sale in
the power region by the merged, consolidated, or affiliated entity
will exceed one] percent of the total installed generation capacity
located in, or capable of delivering electricity to, [electricity
for sale in] the power region.
(a-1) An [The] approval required by Subsection (a) must
[shall] be requested at least 120 days before the date of the
proposed closing of the transaction.
(a-2) The commission shall approve a [the] transaction
described by Subsection (a) unless the commission finds that the
transaction results in a violation of Section 39.154. If the
commission finds that the transaction as proposed would violate
Section 39.154, the commission may condition approval of the
transaction on adoption of reasonable modifications to the
transaction as prescribed by the commission to mitigate potential
market power abuses.
(a-3) If the commission does not issue an order consistent
with Subsection (a-2) before the 121st day after the date the
commission receives a request for approval under Subsection (a),
the request is considered approved by the commission.
SECTION 2. Section 39.158(a), Utilities Code, as amended by
this Act, and Sections 39.158(a-1), (a-2), and (a-3), Utilities
Code, as added by this Act, apply only to a request for an approval
of a transaction received by the Public Utility Commission of Texas
on or after the effective date of this Act. A request for an
approval received by that commission before the effective date of
this Act is governed by the law in effect immediately before the
effective date of this Act, and that law is continued in effect for
that purpose.
SECTION 3. This Act takes effect September 1, 2019.