By: Phelan H.B. No. 3995
A BILL TO BE ENTITLED
AN ACT
relating to certificates of convenience and necessity for the
construction of transmission facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 37.051(a), Utilities Code, is amended to
read as follows:
(a) An electric utility [or other person] may not directly
or indirectly provide service to the public under a franchise or
permit unless the utility [or other person] first obtains from the
commission a certificate that states that the public convenience
and necessity requires or will require the installation, operation,
or extension of the service.
SECTION 2. Section 37.053(a), Utilities Code, is amended to
read as follows:
(a) An electric utility [or other person] that wants to
obtain or amend a certificate must submit an application to the
commission.
SECTION 3. Section 37.055, Utilities Code, is amended to
read as follows:
Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
electric utility [or other person] that wants to exercise a right or
privilege under a franchise or permit that the utility [or other
person] anticipates obtaining but has not been granted may apply to
the commission for a preliminary order under this section.
(b) The commission may issue a preliminary order declaring
that the commission, on application and under commission rules,
will grant the requested certificate on terms the commission
designates, after the electric utility [or other person] obtains
the franchise or permit.
(c) The commission shall grant the certificate on
presentation of evidence satisfactory to the commission that the
electric utility [or other person] has obtained the franchise or
permit.
SECTION 4. Section 37.056, Utilities Code, is amended by
adding Subsection (e) to read as follows:
(e) A certificate for a new transmission facility that
directly interconnects with an existing electric utility facility
may only be granted to the owner of that existing facility. If a new
transmission facility will directly interconnect with facilities
owned by different electric utilities, one or both of those
utilities shall be certificated to construct the new facility.
SECTION 5. Section 37.057, Utilities Code, is amended to
read as follows:
Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
FACILITY. [The commission may grant a certificate for a new
transmission facility to a qualified applicant that meets the
requirements of this subchapter.] The commission must approve or
deny an application for a certificate for a new transmission
facility not later than the first anniversary of the date the
application is filed. If the commission does not approve or deny
the application on or before that date, a party may seek a writ of
mandamus in a district court of Travis County to compel the
commission to decide on the application.
SECTION 6. Section 37.151, Utilities Code, is amended to
read as follows:
Sec. 37.151. PROVISION OF SERVICE. Except as provided by
this section, Section 37.152, and Section 37.153, a certificate
holder[, other than one granted a certificate under Section
37.051(d),] shall:
(1) serve every consumer in the utility's certificated
area; and
(2) provide continuous and adequate service in that
area.
SECTION 7. Section 37.154(a), Utilities Code, is amended to
read as follows:
(a) An electric utility may sell, assign, or lease a
certificate or a right obtained under a certificate if [the
commission determines that] the purchaser, assignee, or lessee was
previously certificated by the commission to provide electric
service within the same electric power region, coordinating
council, independent system operator, or power pool. As part of a
transaction subject to Sections 39.262(l)-(o) and 39.915, the
commission may approve a sale, assignment, or lease to an entity
that has not been previously certificated if the approval will not
diminish the retail rate jurisdiction of this state [can provide
adequate service].
SECTION 8. Sections 37.051(d), (e), and (f), Utilities
Code, are repealed.
SECTION 9. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2019.