Texas 2019 - 86th Regular

Texas Senate Bill SB1938 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	S.B. No. 1938
	1	+	By: Hancock S.B. No. 1938
	2	+	(Phelan, Raymond, Rodriguez, King of Parker, Frullo, et al.)
2	3
3	4
	5	+	A BILL TO BE ENTITLED
4	6		AN ACT
5	7		relating to certificates of convenience and necessity for the
6	8		construction of facilities for the transmission of electricity.
7	9		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
8	10		SECTION 1. Section 37.051(a), Utilities Code, is amended to
9	11		read as follows:
10	12		(a) An electric utility [or other person] may not directly
11	13		or indirectly provide service to the public under a franchise or
12	14		permit unless the utility [or other person] first obtains from the
13	15		commission a certificate that states that the public convenience
14	16		and necessity requires or will require the installation, operation,
15	17		or extension of the service.
16	18		SECTION 2. Section 37.053(a), Utilities Code, is amended to
17	19		read as follows:
18	20		(a) An electric utility [or other person] that wants to
19	21		obtain or amend a certificate must submit an application to the
20	22		commission.
21	23		SECTION 3. Section 37.055, Utilities Code, is amended to
22	24		read as follows:
23	25		Sec. 37.055. REQUEST FOR PRELIMINARY ORDER. (a) An
24	26		electric utility [or other person] that wants to exercise a right or
25	27		privilege under a franchise or permit that the utility [or other
26	28		person] anticipates obtaining but has not been granted may apply to
27	29		the commission for a preliminary order under this section.
28	30		(b) The commission may issue a preliminary order declaring
29	31		that the commission, on application and under commission rules,
30	32		will grant the requested certificate on terms the commission
31	33		designates, after the electric utility [or other person] obtains
32	34		the franchise or permit.
33	35		(c) The commission shall grant the certificate on
34	36		presentation of evidence satisfactory to the commission that the
35	37		electric utility [or other person] has obtained the franchise or
36	38		permit.
37	39		SECTION 4. Section 37.056, Utilities Code, is amended by
38	40		adding Subsections (e), (f), (g), (h), and (i) to read as follows:
39	41		(e) A certificate to build, own, or operate a new
40	42		transmission facility that directly interconnects with an existing
41	43		electric utility facility or municipally owned utility facility may
42	44		be granted only to the owner of that existing facility. If a new
43	45		transmission facility will directly interconnect with facilities
44	46		owned by different electric utilities or municipally owned
45	47		utilities, each entity shall be certificated to build, own, or
46	48		operate the new facility in separate and discrete equal parts
47	49		unless they agree otherwise.
48	50		(f) Notwithstanding Subsection (e), if a new transmission
49	51		line, whether single or double circuit, will create the first
50	52		interconnection between a load-serving station and an existing
51	53		transmission facility, the entity with a load-serving
52	54		responsibility or an electric cooperative that has a member with a
53	55		load-serving responsibility at the load-serving station shall be
54	56		certificated to build, own, or operate the new transmission line
55	57		and the load-serving station. The owner of the existing
56	58		transmission facility shall be certificated to build, own, or
57	59		operate the station or tap at the existing transmission facility to
58	60		provide the interconnection, unless after a reasonable period of
59	61		time the owner of the existing transmission facility is unwilling
60	62		to build, and then the entity with the load-serving responsibility
61	63		or an electric cooperative that has a member with a load-serving
62	64		responsibility may be certificated to build the interconnection
63	65		facility.
64	66		(g) Notwithstanding any other provision of this section, an
65	67		electric utility or municipally owned utility that is authorized to
66	68		build, own, or operate a new transmission facility under Subsection
67	69		(e) or (f) may designate another electric utility that is currently
68	70		certificated by the commission within the same electric power
69	71		region, coordinating council, independent system operator, or
70	72		power pool or a municipally owned utility to build, own, or operate
71	73		a portion or all of such new transmission facility, subject to any
72	74		requirements adopted by the commission by rule.
73	75		(h) The division of any required certification of
74	76		facilities described in this section shall apply unless each entity
75	77		agrees otherwise. Nothing in this section is intended to require a
76	78		certificate for facilities that the commission has determined by
77	79		rule do not require certification to build, own, or operate.
78	80		(i) Notwithstanding any other provision of this section, an
79	81		electric cooperative may be certificated to build, own, or operate
80	82		a new facility in place of any other electric cooperative if both
81	83		cooperatives agree.
82	84		SECTION 5. Section 37.057, Utilities Code, is amended to
83	85		read as follows:
84	86		Sec. 37.057. DEADLINE FOR APPLICATION FOR NEW TRANSMISSION
85	87		FACILITY. [The commission may grant a certificate for a new
86	88		transmission facility to a qualified applicant that meets the
87	89		requirements of this subchapter.] The commission must approve or
88	90		deny an application for a certificate for a new transmission
89	91		facility not later than the first anniversary of the date the
90	92		application is filed. If the commission does not approve or deny
91	93		the application on or before that date, a party may seek a writ of
92	94		mandamus in a district court of Travis County to compel the
93	95		commission to decide on the application.
94	96		SECTION 6. Section 37.151, Utilities Code, is amended to
95	97		read as follows:
96	98		Sec. 37.151. PROVISION OF SERVICE. Except as provided by
97	99		Sections [this section, Section] 37.152[,] and [Section] 37.153, a
98	100		certificate holder[, other than one granted a certificate under
99	101		Section 37.051(d),] shall:
100	102		(1) serve every consumer in the utility's certificated
101	103		area; and
102	104		(2) provide continuous and adequate service in that
103	105		area.
104	106		SECTION 7. Section 37.154(a), Utilities Code, is amended to
105	107		read as follows:
106	108		(a) An electric utility or municipally owned utility may
107	109		sell, assign, or lease a certificate or a right obtained under a
108	110		certificate if [the commission determines that] the purchaser,
109	111		assignee, or lessee is already certificated by the commission to
110	112		provide electric service within the same electric power region,
111	113		coordinating council, independent system operator, or power pool,
112	114		or if the purchaser, assignee, or lessee is an electric cooperative
113	115		or municipally owned utility [can provide adequate service]. As
114	116		part of a transaction subject to Sections 39.262(l)-(o) and 39.915,
115	117		the commission may approve a sale, assignment, or lease to an entity
116	118		that has not been previously certificated if the approval will not
117	119		diminish the retail rate jurisdiction of this state. Any purchase,
118	120		assignment, or lease under this section requires that the
119	121		commission determine that the purchaser, assignee, or lessee can
120	122		provide adequate service.
121	123		SECTION 8. Sections 37.051(d), (e), and (f), Utilities
122	124		Code, are repealed.
123	125		SECTION 9. This Act takes effect immediately if it receives
124	126		a vote of two-thirds of all the members elected to each house, as
125	127		provided by Section 39, Article III, Texas Constitution. If this
126	128		Act does not receive the vote necessary for immediate effect, this
127	129		Act takes effect September 1, 2019.
128		-	______________________________ ______________________________
129		-	President of the Senate Speaker of the House
130		-	I hereby certify that S.B. No. 1938 passed the Senate on
131		-	April 17, 2019, by the following vote: Yeas 30, Nays 1.
132		-	______________________________
133		-	Secretary of the Senate
134		-	I hereby certify that S.B. No. 1938 passed the House on
135		-	May 7, 2019, by the following vote: Yeas 141, Nays 5, one present
136		-	not voting.
137		-	______________________________
138		-	Chief Clerk of the House
139		-	Approved:
140		-	______________________________
141		-	Date
142		-	______________________________
143		-	Governor