87R6805 CXP-F
By: Anderson H.B. No. 3853
A BILL TO BE ENTITLED
AN ACT
relating to middle mile broadband service provided by an electric
utility.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 43, Utilities Code, is amended to read as
follows:
CHAPTER 43. PROVISION [USE] OF MIDDLE MILE [ELECTRIC DELIVERY
SYSTEM FOR ACCESS TO] BROADBAND SERVICE BY ELECTRIC UTILITIES [AND
OTHER ENHANCED SERVICES, INCLUDING COMMUNICATIONS]
SUBCHAPTER A. GENERAL PROVISIONS
Sec. 43.001. LEGISLATIVE FINDINGS. (a) The legislature
finds that access to quality, high-speed broadband Internet service
is important to this state, is a necessary prerequisite for
enabling economic development and improving education, health
care, public safety, and government services in this state, and
provides other benefits to its citizens [broadband over power
lines, also known as BPL, is an emerging technology platform that
offers a means of providing broadband services to reach homes and
businesses. BPL services can also be used to enhance existing
electric delivery systems, which can result in improved service and
reliability for electric customers].
(b) [The legislature finds that access to quality, high
speed broadband services is important to this state. BPL
deployment in Texas has the potential to extend broadband service
to customers where broadband access is currently not available and
may provide an additional option for existing broadband consumers
in Texas, resulting in a more competitive market for broadband
services.] The legislature [further] finds that broadband [BPL]
development in Texas depends on [is fully dependent upon] the
participation of electric utilities in this state that own and
operate [power lines and related] facilities that are necessary for
the full deployment of broadband service throughout this state
[construction of BPL systems and the provision of BPL services].
(c) The legislature finds that electric utilities have
existing infrastructure in place throughout this state and that
their existing and new infrastructure could be used to provide
middle mile broadband service.
(d) The [(c) Consistent with the goal of increasing options
for telecommunications in this state, the] legislature finds that
it is in the public interest to encourage the deployment of
broadband service [BPL] by permitting electric utilities to own or
operate facilities providing middle mile broadband service
[affiliates of the electric utility, or permitting unaffiliated
entities, to own or operate all or a portion of such BPL systems].
The purpose of this chapter is to provide the appropriate framework
to support the deployment of those facilities [BPL].
(e) [(d)] The legislature finds that an electric utility
may choose to implement middle mile broadband service [BPL] under
the procedures set forth in this chapter, but is not required to do
so. The electric utility shall have the right to decide, in its
sole discretion, whether to implement middle mile broadband service
[BPL] and may not be penalized for deciding to implement or not to
implement that service [BPL].
Sec. 43.002. APPLICABILITY. (a) This chapter applies to an
electric utility whether or not the electric utility is offering
customer choice under Chapter 39.
(b) If there is a conflict between the specific provisions
of this chapter and any other provisions of this title, the
provisions of this chapter control.
(c) No provision of this title imposes [shall impose] an
obligation on an electric utility to [implement BPL, to] provide
broadband service [services,] or to allow others to install [BPL]
facilities or use the electric utility's facilities for the
provision of broadband service [services].
Sec. 43.003. DEFINITIONS. In this chapter:
(1) "Broadband service" means Internet service with
the capability of providing a download speed of 25 megabits per
second or faster and an upload speed of 3 megabits per second or
faster ["BPL," "broadband over power lines," and "BPL services"
mean the provision of broadband services over electric power lines
and related facilities, whether above ground or in underground
conduit].
(2) "Middle mile broadband service" means the
provision of broadband service to an Internet service provider on a
wholesale basis. The term does not include provision of Internet
service to end-use customers on a retail basis ["BPL access" means
the ability to access broadband services via a BPL operator or BPL
Internet service provider].
(3) "Internet ["BPL operator" means an entity that
owns or operates a BPL system on the electric power lines and
related facilities of an electric utility.
[(4) "BPL Internet] service provider" means [and "BPL
ISP" mean] an entity that provides Internet services to others on a
wholesale basis or to end-use customers on a retail basis.
(4) [(5) "BPL system" means the materials, equipment,
and other facilities installed on electric utility property to
facilitate the provision of BPL services.
[(6) "BPL electric utility applications" means
services and technologies that are used and useful and designed to
improve the operational performance and service reliability of an
electric utility including, but not limited to, automated meter
reading, real time system monitoring and meter control, remote
service control, outage detection and restoration, predictive
maintenance and diagnostics, and monitoring and enhancement of
power quality.
[(7)] "Electric delivery system" means the power lines
and related transmission and distribution facilities used by an
electric utility to deliver electric energy.
(5) [(8)] "Electric utility" includes [shall include]
an electric utility and a transmission and distribution utility as
defined in Section 31.002(6) or (19).
SUBCHAPTER B. DEVELOPMENT OF MIDDLE MILE BROADBAND [BPL] SYSTEMS
Sec. 43.051. AUTHORIZATION FOR MIDDLE MILE BROADBAND [BPL]
SYSTEM. (a) An [affiliate of an] electric utility [or a person
unaffiliated with an electric utility] may own, construct,
maintain, and operate fiber optic cables and other facilities for
providing middle mile broadband service [a BPL system and provide
BPL services on an electric utility's electric delivery system]
consistent with the requirements of this chapter. Nothing in this
chapter prohibits [shall prohibit] an entity defined in Section
11.003(9) from providing broadband [BPL] service or owning and
operating a broadband [BPL] system.
(b) The electric utility may determine which Internet
service providers may have access to broadband capacity on the
electric utility's middle mile broadband system and provide access
points to allow connection between the electric utility's broadband
system and the Internet service provider systems of those Internet
service providers. [Nothing in this chapter shall prohibit an
electric utility from providing construction or maintenance
services to a BPL operator or BPL ISP provided that the costs of
these services are properly accounted for between the electric
utility and the BPL operator or BPL ISP.]
Sec. 43.052. [OWNERSHIP AND OPERATION OF BPL SYSTEM. (a)
An electric utility may elect to:
[(1) allow an affiliate to own or operate a BPL system
on the utility's electric delivery system;
[(2) allow an unaffiliated entity to own or operate a
BPL system on the electric utility's electric delivery system; or
[(3) allow an affiliate or unaffiliated entity to
provide Internet service over a BPL system.
[(b) The BPL operator and the electric utility shall
determine what BPL Internet service providers may have access to
broadband capacity on the BPL system.
[Sec. 43.053. FEES AND] CHARGES. [(a)] An electric utility
that owns and operates a middle mile broadband system may lease
capacity on the system to an Internet service provider on a
wholesale basis and [allows an affiliate or an unaffiliated entity
to own a BPL system on the electric utility's electric delivery
system] shall charge the Internet service provider [owner of the
BPL system] for the use of the electric utility's [electric
delivery] system.
[(b) An electric utility may pay a BPL owner, a BPL
operator, or a BPL ISP for the use of the BPL system required to
operate BPL utility applications.
[(c) If all or part of a BPL system is installed on poles or
other structures of a telecommunications utility as that term is
defined in Section 51.002, the owner of the BPL system shall be
required to pay the telecommunications utility an annual fee
consistent with the usual and customary charges for access to the
space occupied by that portion of the BPL system so installed.
[(d) Notwithstanding Subsections (a)-(c):
[(1) an electric utility may not charge an affiliate
under this section an amount less than the electric utility would
charge an unaffiliated entity for the same item or class of items;
[(2) an electric utility may not pay an affiliate
under this section an amount more than the affiliate would charge an
unaffiliated entity for the same item or class of items; and
[(3) an electric utility or an affiliate of an
electric utility may not discriminate against a retail electric
provider that is not affiliated with the utility in the terms or
availability of BPL services.]
Sec. 43.053 [43.054]. NO ADDITIONAL EASEMENTS OR
CONSIDERATION REQUIRED. Because broadband [BPL] systems provide
benefits to electric delivery systems, the installation of a middle
mile broadband [BPL] system on an electric delivery system does
[shall] not require the electric utility [or the owner of the BPL
system] or an entity defined in Section 11.003(9) to obtain,
modify, or expand easements or other rights-of-way for the middle
mile broadband [BPL] system or to give additional consideration as
a result of the installation or the operation of a middle mile
broadband [BPL] system on the electric delivery system of the
electric utility or entity. [For purposes of this section,
installation of a BPL system shall be deemed to be consistent with
installation of an electric delivery system.]
Sec. 43.054 [43.055]. RELIABILITY OF ELECTRIC SYSTEMS
MAINTAINED. An electric utility that installs [allows the
installation] and operates [operation of] a middle mile broadband
[BPL] system [on its electric delivery system] shall employ all
reasonable measures to ensure that the operation of the middle mile
broadband [BPL] system does not interfere with or diminish the
reliability of the utility's electric delivery system. If [Should]
a disruption in the provision of electric service occurs [occur],
the electric utility is [shall be] governed by the terms and
conditions of the retail electric delivery service tariff. The
electric utility may take all necessary actions regarding its
middle mile broadband system to address emergency circumstances
that may pose health, safety, or reliability concerns. At all
times, the provision of broadband service is [services shall be]
secondary to the reliable provision of electric delivery services.
An electric utility is not liable to any person, including an
Internet service provider, for any direct, indirect, or
consequential damages, including loss of business, loss of profits
or revenue, or loss of production capacity caused by a fluctuation,
disruption, or interruption of middle mile broadband service that
is caused in whole or in part by:
(1) force majeure; or
(2) the electric utility's provision of electric
delivery services, including actions taken by the electric utility
to ensure the reliability of the electric delivery system and
actions taken in response to address emergency circumstances that
may pose health, safety, or reliability concerns.
SUBCHAPTER C. IMPLEMENTATION OF MIDDLE MILE BROADBAND [BPL] SYSTEM
BY ELECTRIC UTILITY
Sec. 43.101. PARTICIPATION BY ELECTRIC UTILITY. (a) An
electric utility[, through an affiliate or through an unaffiliated
entity,] may [elect to] install and operate a middle mile broadband
[BPL] system on any part of its electric delivery system [some or
all of its electric delivery system in any part or all of its
certificated service area].
(b) The installation, operation, and use of a middle mile
broadband [BPL] system and the provision of middle mile broadband
service may [BPL services shall] not be regulated by any state
agency, a municipality, or local government other than as provided
by [for in] this chapter.
(c) An electric utility that owns and operates a middle mile
broadband system:
(1) may lease capacity on the system to an Internet
service provider on a wholesale basis; and
(2) may not provide Internet service to end-use
customers on a retail basis.
(d) [(c)] The commission or a state or local government or a
regulatory or quasi-governmental or a quasi-regulatory authority
may not:
(1) require an electric utility[, either through an
affiliate or an unaffiliated entity,] to install a middle mile
broadband [BPL] system [on its power lines] or offer middle mile
broadband service on the utility's electric delivery system [BPL
services in all or any part of the electric utility's certificated
service area];
(2) require an electric utility to allow others to
install a middle mile broadband [BPL] system on the utility's
electric delivery system [in any part or all of the electric
utility's certificated service area]; or
(3) prohibit an electric utility from installing a
middle mile broadband system or offering middle mile broadband
service on the utility's electric delivery system [having an
affiliate or unaffiliated entity install a BPL system or offering
BPL services in any part or all of the electric utility's
certificated service area].
(e) [(d)] If a municipality or local government is already
collecting a charge or fee from the electric utility for the use of
the public rights-of-way for the delivery of electricity to retail
electric customers, the municipality or local government may not
require [is prohibited from requiring] a franchise or an amendment
to a franchise or require an additional [from requiring a] charge,
fee, or tax from the electric utility [any entity] for use of the
public rights-of-way for a middle mile broadband [BPL] system.
(f) [(e)] The state or a municipality may impose a charge on
the provision of middle mile broadband service [BPL services], but
the charge may not be greater than the lowest charge that the state
or municipality imposes on other providers of broadband service
[services] for use of the public rights-of-way in its respective
jurisdiction.
Sec. 43.102. COMMISSION REVIEW OF UTILITY MIDDLE MILE PLAN.
(a) An electric utility that plans a project to deploy middle mile
broadband shall submit to the commission a written plan that
includes:
(1) the route of the middle mile broadband
infrastructure proposed for the project;
(2) the number of fiber strands and any other
facilities that would be used in connection with the project and
dedicated to serve as the middle mile;
(3) the location of the electric utility's
infrastructure that will be used in connection with the project;
(4) the capacity or number of fiber strands and any
other facilities of the middle mile that will be available to lease
to Internet service providers and other third parties on completion
of the project;
(5) the name of at least one Internet service provider
that has committed to leasing access to the middle mile broadband
assets constructed as part of the project;
(6) an estimate of potential broadband customers that
would be served by the middle mile infrastructure;
(7) the estimated cost of the project, including
engineering costs, construction costs, permitting costs,
right-of-way costs, and a reasonable allowance for funds used
during construction;
(8) the proposed schedule of construction for the
project;
(9) the method of attachment and connection of the
middle mile broadband assets to the electric utility's
infrastructure;
(10) testimony, exhibits, or other evidence that
demonstrates the project will allow for the provision and
maintenance of adequate, efficient, safe, reliable, and reasonably
priced middle mile broadband service; and
(11) any other information that the applicant
considers relevant or that the commission requires.
(b) The commission, after notice and hearing if required by
the commission, shall approve the plan if the commission finds that
the plan will allow for the provision and maintenance of adequate,
efficient, safe, reliable, and reasonably priced middle mile
broadband service.
(c) If the commission approves a plan under this section,
the commission shall issue a finding for the electric utility that
the middle mile broadband facilities subject to the plan are used
and useful to the electric utility, the costs associated with the
middle mile broadband facilities are reasonable, and the middle
mile broadband facilities are prudent and includable in the
electric utility's rate base, regardless of the extent of the
electric utility's actual use of the middle mile broadband
facilities.
(d) The commission must approve, modify, or reject a plan
submitted to the commission under this section not later than the
181st day after the date the plan is submitted under Subsection (a).
(e) An approved plan may be updated or amended subject to
commission approval in accordance with this section.
Sec. 43.103 [43.102]. COST RECOVERY FOR DEPLOYMENT OF
MIDDLE MILE BROADBAND FACILITIES [BPL AND UTILITY APPLICATIONS].
(a) Where an electric utility installs a middle mile broadband
system [permits the installation of a BPL system on its electric
delivery system] under Section 43.051 [43.052(a)], the electric
utility's investment in that middle mile broadband [BPL] system is
[to directly support the BPL electric utility applications and
other BPL services consumed by the electric utility that are used
and useful in providing electric utility service shall be] eligible
for inclusion in the electric utility's invested capital, and any
fees or operating expenses that are reasonable and necessary are
[shall be] eligible for inclusion as operating expenses for
purposes of any proceeding under Chapter 36. An electric utility
may recover, on a periodic basis, the invested capital and any fees
or operating expenses associated with the middle mile broadband
system. In approving a tariff or rate schedule that includes the
recovery of invested capital and any fees or operating expenses
associated with the middle mile broadband system, the commission
shall use the return on investment used in the final order that
established the electric utility's latest effective base rates [The
invested capital and expenses described in this section must be
allocated to the customer classes directly receiving the services].
(b) In a [any] proceeding under Chapter 36, all revenue
received by an electric utility from an Internet service provider
for the use of a middle mile broadband system must be applied as a
revenue credit [just and reasonable charges for the use of the
electric utility's electric delivery system by a BPL owner or
operator shall be limited to the usual and customary pole
attachment charges paid to the electric utility for comparable
space by cable television operators].
[(c) The revenues of an affiliated BPL operator or an
affiliated BPL ISP shall not be deemed the revenues of an electric
utility for purposes of setting rates under Chapter 36.]
SUBCHAPTER D. MISCELLANEOUS PROVISIONS
Sec. 43.151. [AFFILIATES OF ELECTRIC UTILITY. (a) Subject
to the limitations of this chapter, an electric utility may have a
full or partial ownership interest in a BPL operator or a BPL
ISP. Whether a BPL operator or a BPL ISP is an affiliate of the
electric utility shall be determined under Section 11.003(2) or
Section 11.006.
[(b) Neither a BPL operator nor a BPL ISP shall be
considered a "competitive affiliate" of an electric utility as that
term is defined in Section 39.157.
[Sec. 43.152.] COMPLIANCE WITH FEDERAL LAW. An electric
utility that owns and operates a middle mile broadband system [BPL
operators] shall comply with all applicable federal laws[,
including those protecting licensed spectrum users from
interference by BPL systems. The operator of a radio frequency
device shall be required to cease operating the device upon
notification by a Federal Communications Commission or Public
Utilities Commission representative that the device is causing
harmful interference. Operation shall not resume until the
condition causing the harmful interference has been corrected].
SECTION 2. Section 33.001(b), Utilities Code, is repealed.
SECTION 3. 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, 2021.