86R13517 GRM-D
By: Wilson H.B. No. 4054
A BILL TO BE ENTITLED
AN ACT
relating to a landowner petition to partition and transfer a
geographic portion of a service area of an electric cooperative.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter B, Chapter 39, Utilities Code, is
amended by adding Section 39.056 to read as follows:
Sec. 39.056. LANDOWNER PETITION TO TRANSFER TERRITORY TO
COMPETITIVE RETAIL MARKET. (a) The owner of a parcel of land part
of which is in an area open to competition in ERCOT and part of which
is in the certificated service area of an electric cooperative
created under Chapter 161 may petition the commission to:
(1) partition the part of the land that is subject to
the electric cooperative's certificate of convenience and
necessity;
(2) transfer the land described by Subdivision (1) to
the certificated service area of a transmission and distribution
utility that serves the part of the land that is in the area open to
competition; and
(3) amend accordingly the certificate of convenience
and necessity of the:
(A) electric cooperative; and
(B) transmission and distribution utility.
(b) The petition must provide the commission with an
accurate description of the land as necessary to facilitate the
requested action.
(c) The commission shall hold a hearing on the petition. If
the commission determines the partition and transfer of territory
is in the best interest of ratepayers, the commission shall approve
the partition and conduct a proceeding to effectuate the transfer.
(d) Through the proceeding, the commission shall determine
the net book value of all of the cooperative's electric
distribution assets attributable to the service area that is
proposed to be transferred.
(e) Not later than the 90th day after the date the
commission determines the value of the cooperative's electric
distribution assets attributable to the transferred service area,
the transmission and distribution utility shall compensate the
cooperative for the assets as directed by the commission.
(f) The commission shall amend or issue certificates of
convenience and necessity to implement the transfer of the service
area.
(g) The commission shall adopt rules to implement this
section.
SECTION 2. This Act takes effect September 1, 2019.