| 1 | 1 | | 86R13517 GRM-D |
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| 2 | 2 | | By: Wilson H.B. No. 4054 |
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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 a landowner petition to partition and transfer a |
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| 8 | 8 | | geographic portion of a service area of an electric cooperative. |
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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. Subchapter B, Chapter 39, Utilities Code, is |
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| 11 | 11 | | amended by adding Section 39.056 to read as follows: |
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| 12 | 12 | | Sec. 39.056. LANDOWNER PETITION TO TRANSFER TERRITORY TO |
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| 13 | 13 | | COMPETITIVE RETAIL MARKET. (a) The owner of a parcel of land part |
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| 14 | 14 | | of which is in an area open to competition in ERCOT and part of which |
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| 15 | 15 | | is in the certificated service area of an electric cooperative |
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| 16 | 16 | | created under Chapter 161 may petition the commission to: |
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| 17 | 17 | | (1) partition the part of the land that is subject to |
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| 18 | 18 | | the electric cooperative's certificate of convenience and |
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| 19 | 19 | | necessity; |
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| 20 | 20 | | (2) transfer the land described by Subdivision (1) to |
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| 21 | 21 | | the certificated service area of a transmission and distribution |
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| 22 | 22 | | utility that serves the part of the land that is in the area open to |
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| 23 | 23 | | competition; and |
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| 24 | 24 | | (3) amend accordingly the certificate of convenience |
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| 25 | 25 | | and necessity of the: |
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| 26 | 26 | | (A) electric cooperative; and |
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| 27 | 27 | | (B) transmission and distribution utility. |
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| 28 | 28 | | (b) The petition must provide the commission with an |
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| 29 | 29 | | accurate description of the land as necessary to facilitate the |
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| 30 | 30 | | requested action. |
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| 31 | 31 | | (c) The commission shall hold a hearing on the petition. If |
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| 32 | 32 | | the commission determines the partition and transfer of territory |
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| 33 | 33 | | is in the best interest of ratepayers, the commission shall approve |
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| 34 | 34 | | the partition and conduct a proceeding to effectuate the transfer. |
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| 35 | 35 | | (d) Through the proceeding, the commission shall determine |
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| 36 | 36 | | the net book value of all of the cooperative's electric |
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| 37 | 37 | | distribution assets attributable to the service area that is |
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| 38 | 38 | | proposed to be transferred. |
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| 39 | 39 | | (e) Not later than the 90th day after the date the |
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| 40 | 40 | | commission determines the value of the cooperative's electric |
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| 41 | 41 | | distribution assets attributable to the transferred service area, |
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| 42 | 42 | | the transmission and distribution utility shall compensate the |
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| 43 | 43 | | cooperative for the assets as directed by the commission. |
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| 44 | 44 | | (f) The commission shall amend or issue certificates of |
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| 45 | 45 | | convenience and necessity to implement the transfer of the service |
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| 46 | 46 | | area. |
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| 47 | 47 | | (g) The commission shall adopt rules to implement this |
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| 48 | 48 | | section. |
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| 49 | 49 | | SECTION 2. This Act takes effect September 1, 2019. |
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