S.B. No. 1938
AN ACT
relating to certificates of convenience and necessity for the
construction of facilities for the transmission of electricity.
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 Subsections (e), (f), (g), (h), and (i) to read as follows:
(e) A certificate to build, own, or operate a new
transmission facility that directly interconnects with an existing
electric utility facility or municipally owned utility facility may
be granted only to the owner of that existing facility. If a new
transmission facility will directly interconnect with facilities
owned by different electric utilities or municipally owned
utilities, each entity shall be certificated to build, own, or
operate the new facility in separate and discrete equal parts
unless they agree otherwise.
(f) Notwithstanding Subsection (e), if a new transmission
line, whether single or double circuit, will create the first
interconnection between a load-serving station and an existing
transmission facility, the entity with a load-serving
responsibility or an electric cooperative that has a member with a
load-serving responsibility at the load-serving station shall be
certificated to build, own, or operate the new transmission line
and the load-serving station. The owner of the existing
transmission facility shall be certificated to build, own, or
operate the station or tap at the existing transmission facility to
provide the interconnection, unless after a reasonable period of
time the owner of the existing transmission facility is unwilling
to build, and then the entity with the load-serving responsibility
or an electric cooperative that has a member with a load-serving
responsibility may be certificated to build the interconnection
facility.
(g) Notwithstanding any other provision of this section, an
electric utility or municipally owned utility that is authorized to
build, own, or operate a new transmission facility under Subsection
(e) or (f) may designate another electric utility that is currently
certificated by the commission within the same electric power
region, coordinating council, independent system operator, or
power pool or a municipally owned utility to build, own, or operate
a portion or all of such new transmission facility, subject to any
requirements adopted by the commission by rule.
(h) The division of any required certification of
facilities described in this section shall apply unless each entity
agrees otherwise. Nothing in this section is intended to require a
certificate for facilities that the commission has determined by
rule do not require certification to build, own, or operate.
(i) Notwithstanding any other provision of this section, an
electric cooperative may be certificated to build, own, or operate
a new facility in place of any other electric cooperative if both
cooperatives agree.
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
Sections [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 or municipally owned 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 is already certificated by the commission to
provide electric service within the same electric power region,
coordinating council, independent system operator, or power pool,
or if the purchaser, assignee, or lessee is an electric cooperative
or municipally owned utility [can provide adequate service]. 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. Any purchase,
assignment, or lease under this section requires that the
commission determine that the purchaser, assignee, or lessee 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.
______________________________ ______________________________
President of the Senate Speaker of the House
I hereby certify that S.B. No. 1938 passed the Senate on
April 17, 2019, by the following vote: Yeas 30, Nays 1.
______________________________
Secretary of the Senate
I hereby certify that S.B. No. 1938 passed the House on
May 7, 2019, by the following vote: Yeas 141, Nays 5, one present
not voting.
______________________________
Chief Clerk of the House
Approved:
______________________________
Date
______________________________
Governor