Texas 2019 - 86th Regular

Texas House Bill HB3995 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	86R23387 JXC-F
2		-	By: Phelan, Raymond, Rodriguez, H.B. No. 3995
3		-	King of Parker, Frullo, et al.
4		-	Substitute the following for H.B. No. 3995:
5		-	By: Deshotel C.S.H.B. No. 3995
	1	+	By: Phelan H.B. No. 3995
6	2
7	3
8	4		A BILL TO BE ENTITLED
9	5		AN ACT
10	6		relating to certificates of convenience and necessity for the
11		-	construction of ~~facilities for the~~ transmission ~~of electricity~~.
	7	+	construction of transmission facilities.
12	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	9		SECTION 1. Section 37.051(a), Utilities Code, is amended to
14	10		read as follows:
15	11		(a) An electric utility [or other person] may not directly
16	12		or indirectly provide service to the public under a franchise or
17	13		permit unless the utility [or other person] first obtains from the
18	14		commission a certificate that states that the public convenience
19	15		and necessity requires or will require the installation, operation,
20	16		or extension of the service.
21	17		SECTION 2. Section 37.053(a), Utilities Code, is amended to
22	18		read as follows:
23	19		(a) An electric utility [or other person] that wants to
24	20		obtain or amend a certificate must submit an application to the
25	21		commission.
26	22		SECTION 3. Section 37.055, Utilities Code, is amended to
27	23		read as follows:
28	24		Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
29	25		electric utility [or other person] that wants to exercise a right or
30	26		privilege under a franchise or permit that the utility [or other
31	27		person] anticipates obtaining but has not been granted may apply to
32	28		the commission for a preliminary order under this section.
33	29		(b) The commission may issue a preliminary order declaring
34	30		that the commission, on application and under commission rules,
35	31		will grant the requested certificate on terms the commission
36	32		designates, after the electric utility [or other person] obtains
37	33		the franchise or permit.
38	34		(c) The commission shall grant the certificate on
39	35		presentation of evidence satisfactory to the commission that the
40	36		electric utility [or other person] has obtained the franchise or
41	37		permit.
42	38		SECTION 4. Section 37.056, Utilities Code, is amended by
43		-	adding Subsections (e), (f), (g), (h), and (i) to read as follows:
44		-	(e) A certificate to build, own, or operate a new
45		-	transmission facility that directly interconnects with an existing
46		-	electric utility facility or municipally owned utility facility may
47		-	be granted only to the owner of that existing facility. If a new
	39	+	adding Subsection (e) to read as follows:
	40	+	(e) A certificate for a new transmission facility that
	41	+	directly interconnects with an existing electric utility facility
	42	+	may only be granted to the owner of that existing facility. If a new
48	43		transmission facility will directly interconnect with facilities
49		-	owned by different electric utilities or municipally owned
50		-	utilities, each entity shall be certificated to build, own, or
51		-	operate the new facility in separate and discrete equal parts
52		-	unless they agree otherwise.
53		-	(f) Notwithstanding Subsection (e), if a new transmission
54		-	line, whether single or double circuit, will create the first
55		-	interconnection between a load-serving station and an existing
56		-	transmission facility, the entity with a load-serving
57		-	responsibility or an electric cooperative that has a member with a
58		-	load-serving responsibility at the load-serving station shall be
59		-	certificated to build, own, or operate the new transmission line
60		-	and the load-serving station. The owner of the existing
61		-	transmission facility shall be certificated to build, own, or
62		-	operate the station or tap at the existing transmission facility to
63		-	provide the interconnection, unless after a reasonable period of
64		-	time the owner of the existing transmission facility is unwilling
65		-	to build, and then the entity with the load-serving responsibility
66		-	or an electric cooperative that has a member with a load-serving
67		-	responsibility may be certificated to build the interconnection
68		-	facility.
69		-	(g) Notwithstanding any other provision of this section, an
70		-	electric utility or municipally owned utility that is authorized to
71		-	build, own, or operate a new transmission facility under Subsection
72		-	(e) or (f) may designate another electric utility that is currently
73		-	certificated by the commission within the same electric power
74		-	region, coordinating council, independent system operator, or
75		-	power pool or a municipally owned utility to build, own, or operate
76		-	a portion or all of such new transmission facility, subject to any
77		-	requirements adopted by the commission by rule.
78		-	(h) The division of any required certification of
79		-	facilities described in this section shall apply unless each entity
80		-	agrees otherwise. Nothing in this section is intended to require a
81		-	certificate for facilities that the commission has determined by
82		-	rule do not require certification to build, own, or operate.
83		-	(i) Notwithstanding any other provision of this section, an
84		-	electric cooperative may be certificated to build, own, or operate
85		-	a new facility in place of any other electric cooperative if both
86		-	cooperatives agree, subject to any requirements adopted by the
87		-	commission by rule.
	44	+	owned by different electric utilities, one or both of those
	45	+	utilities shall be certificated to construct the new facility.
88	46		SECTION 5. Section 37.057, Utilities Code, is amended to
89	47		read as follows:
90	48		Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
91	49		FACILITY. [The commission may grant a certificate for a new
92	50		transmission facility to a qualified applicant that meets the
93	51		requirements of this subchapter.] The commission must approve or
94	52		deny an application for a certificate for a new transmission
95	53		facility not later than the first anniversary of the date the
96	54		application is filed. If the commission does not approve or deny
97	55		the application on or before that date, a party may seek a writ of
98	56		mandamus in a district court of Travis County to compel the
99	57		commission to decide on the application.
100	58		SECTION 6. Section 37.151, Utilities Code, is amended to
101	59		read as follows:
102	60		Sec. 37.151. PROVISION OF SERVICE. Except as provided by
103		-	~~Sections [~~this section, Section] 37.152[,] and [Section] 37.153, a
104		-	~~certificate~~ holder[, other than one granted a certificate under
105		-	~~Section~~ 37.051(d),] shall:
	61	+	this section, Section 37.152, and Section 37.153, a certificate
	62	+	holder[, other than one granted a certificate under Section
	63	+	37.051(d),] shall:
106	64		(1) serve every consumer in the utility's certificated
107	65		area; and
108	66		(2) provide continuous and adequate service in that
109	67		area.
110	68		SECTION 7. Section 37.154(a), Utilities Code, is amended to
111	69		read as follows:
112		-	(a) An electric utility or municipally owned utility may
113		-	sell, assign, or lease a certificate or a right obtained under a
114		-	certificate if [the commission determines that] the purchaser,
115		-	assignee, or lessee is already certificated by the commission to
116		-	provide electric service within the same electric power region,
117		-	coordinating council, independent system operator, or power pool,
118		-	or if the purchaser, assignee, or lessee is an electric cooperative
119		-	or municipally owned utility [can provide adequate service]. As
120		-	part of a transaction subject to Sections 39.262(l)-(o) and 39.915,
121		-	the commission may approve a sale, assignment, or lease to an entity
	70	+	(a) An electric utility may sell, assign, or lease a
	71	+	certificate or a right obtained under a certificate if [the
	72	+	commission determines that] the purchaser, assignee, or lessee was
	73	+	previously certificated by the commission to provide electric
	74	+	service within the same electric power region, coordinating
	75	+	council, independent system operator, or power pool. As part of a
	76	+	transaction subject to Sections 39.262(l)-(o) and 39.915, the
	77	+	commission may approve a sale, assignment, or lease to an entity
122	78		that has not been previously certificated if the approval will not
123		-	diminish the retail rate jurisdiction of this state. Any purchase,
124		-	assignment, or lease under this section requires that the
125		-	commission determine that the purchaser, assignee, or lessee can
126		-	provide adequate service.
	79	+	diminish the retail rate jurisdiction of this state [can provide
	80	+	adequate service].
127	81		SECTION 8. Sections 37.051(d), (e), and (f), Utilities
128	82		Code, are repealed.
129	83		SECTION 9. This Act takes effect immediately if it receives
130	84		a vote of two-thirds of all the members elected to each house, as
131	85		provided by Section 39, Article III, Texas Constitution. If this
132	86		Act does not receive the vote necessary for immediate effect, this
133	87		Act takes effect September 1, 2019.