Texas 2021 - 87th Regular

Texas House Bill HB3853 Compare Versions

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1-H.B. No. 3853
1+By: Anderson, et al. (Senate Sponsor - Perry) H.B. No. 3853
2+ (In the Senate - Received from the House April 27, 2021;
3+ May 13, 2021, read first time and referred to Committee on
4+ Transportation; May 20, 2021, reported adversely, with favorable
5+ Committee Substitute by the following vote: Yeas 9, Nays 0;
6+ May 20, 2021, sent to printer.)
7+Click here to see the committee vote
8+ COMMITTEE SUBSTITUTE FOR H.B. No. 3853 By: Perry
29
310
11+ A BILL TO BE ENTITLED
412 AN ACT
513 relating to middle mile broadband service provided by an electric
614 utility.
715 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
816 SECTION 1. Chapter 43, Utilities Code, is amended to read as
917 follows:
1018 CHAPTER 43. PROVISION [USE] OF MIDDLE MILE [ELECTRIC DELIVERY
1119 SYSTEM FOR ACCESS TO] BROADBAND SERVICE BY ELECTRIC UTILITIES [AND
1220 OTHER ENHANCED SERVICES, INCLUDING COMMUNICATIONS]
1321 SUBCHAPTER A. GENERAL PROVISIONS
1422 Sec. 43.001. LEGISLATIVE FINDINGS. (a) The legislature
1523 finds that access to quality, high-speed broadband Internet service
1624 is important to this state, is a necessary prerequisite for
1725 enabling economic development and improving education, health
1826 care, public safety, and government services in this state, and
1927 provides other benefits to its citizens [broadband over power
2028 lines, also known as BPL, is an emerging technology platform that
2129 offers a means of providing broadband services to reach homes and
2230 businesses. BPL services can also be used to enhance existing
2331 electric delivery systems, which can result in improved service and
2432 reliability for electric customers].
2533 (b) [The legislature finds that access to quality, high
2634 speed broadband services is important to this state. BPL
2735 deployment in Texas has the potential to extend broadband service
2836 to customers where broadband access is currently not available and
2937 may provide an additional option for existing broadband consumers
3038 in Texas, resulting in a more competitive market for broadband
3139 services.] The legislature [further] finds that broadband [BPL]
3240 development in unserved and underserved areas of Texas can be
3341 facilitated by [is fully dependent upon] the participation of
3442 electric utilities in this state that own and operate [power lines
3543 and related] facilities that may be useful [are necessary] for the
3644 full deployment of broadband service by Internet service providers
3745 throughout this state [construction of BPL systems and the
3846 provision of BPL services].
3947 (c) The legislature finds that electric utilities have
4048 existing infrastructure in place throughout this state and that
4149 excess fiber capacity on that infrastructure could be used to
4250 provide middle mile broadband service in unserved and underserved
4351 areas.
4452 (d) The [(c) Consistent with the goal of increasing options
4553 for telecommunications in this state, the] legislature finds that
4654 it is in the public interest to encourage the deployment of
4755 broadband service in unserved and underserved areas [BPL] by
4856 permitting electric utilities to own, construct, or operate fiber
4957 facilities for the support of electric service and to lease excess
5058 fiber capacity for the provision of middle mile broadband service
5159 [affiliates of the electric utility, or permitting unaffiliated
5260 entities, to own or operate all or a portion of such BPL systems].
5361 The purpose of this chapter is to provide the appropriate framework
5462 to facilitate the leasing of excess fiber capacity on electric
5563 utility facilities [support the deployment of BPL].
5664 (e) [(d)] The legislature finds that an electric utility
5765 may choose to implement middle mile broadband service to lease
5866 excess fiber capacity to Internet service providers [BPL] under the
5967 procedures set forth in this chapter, but is not required to do so.
6068 The electric utility shall have the right to decide, in its sole
6169 discretion, whether to implement middle mile broadband service
6270 [BPL] and may not be penalized for deciding to implement or not to
6371 implement that service [BPL].
6472 Sec. 43.002. APPLICABILITY. (a) This chapter applies to an
6573 electric utility whether or not the electric utility is offering
6674 customer choice under Chapter 39.
6775 (b) If there is a conflict between the specific provisions
6876 of this chapter and any other provisions of this title, the
6977 provisions of this chapter control.
7078 (c) Except as otherwise provided by this title, no [No]
7179 provision of this title imposes [shall impose] an obligation on an
7280 electric utility to construct or operate facilities to [implement
7381 BPL, to] provide middle mile broadband service [services], or to
7482 allow others to install [BPL] facilities or use the electric
7583 utility's facilities for the provision of broadband service
7684 [services].
7785 Sec. 43.003. DEFINITIONS. In this chapter:
7886 (1) "Broadband service" means retail Internet service
7987 provided by a commercial Internet service provider with the
8088 capability of providing a download speed of at least 25 megabits per
8189 second and an upload speed of at least 3 megabits per second ["BPL,"
8290 "broadband over power lines," and "BPL services" mean the provision
8391 of broadband services over electric power lines and related
8492 facilities, whether above ground or in underground conduit].
8593 (2) "Internet ["BPL access" means the ability to
8694 access broadband services via a BPL operator or BPL Internet
8795 service provider.
8896 [(3) "BPL operator" means an entity that owns or
8997 operates a BPL system on the electric power lines and related
9098 facilities of an electric utility.
9199 [(4) "BPL Internet] service provider" means a
92100 commercial [and "BPL ISP" mean an] entity that provides Internet
93101 services [to others on a wholesale basis or] to end-use customers on
94102 a retail basis.
95103 (3) [(5) "BPL system" means the materials, equipment,
96104 and other facilities installed on electric utility property to
97105 facilitate the provision of BPL services.
98106 [(6) "BPL electric utility applications" means
99107 services and technologies that are used and useful and designed to
100108 improve the operational performance and service reliability of an
101109 electric utility including, but not limited to, automated meter
102110 reading, real time system monitoring and meter control, remote
103111 service control, outage detection and restoration, predictive
104112 maintenance and diagnostics, and monitoring and enhancement of
105113 power quality.
106114 [(7)] "Electric delivery system" means the power lines
107115 and related transmission and distribution facilities constructed
108116 [used by an electric utility] to deliver electric energy to the
109117 electric utility's customers.
110118 (4) [(8)] "Electric utility" includes [shall include]
111119 an electric utility and a transmission and distribution utility as
112120 defined in Section 31.002(6) or (19).
113121 (5) "Middle mile broadband service" means the
114122 provision of excess fiber capacity on an electric utility's
115123 electric delivery system or other facilities to an Internet service
116124 provider to provide broadband service. The term does not include
117125 provision of Internet service to end-use customers on a retail
118126 basis.
119127 SUBCHAPTER B. DEVELOPMENT OF MIDDLE MILE BROADBAND SERVICE [BPL
120128 SYSTEMS]
121129 Sec. 43.051. AUTHORIZATION FOR MIDDLE MILE BROADBAND
122130 SERVICE [BPL SYSTEM]. (a) An [affiliate of an] electric utility
123131 [or a person unaffiliated with an electric utility] may own,
124132 construct, maintain, and operate fiber optic cables and other
125133 facilities for providing middle mile broadband service in unserved
126134 and underserved areas [a BPL system and provide BPL services on an
127135 electric utility's electric delivery system] consistent with the
128136 requirements of this chapter. Nothing in this chapter prohibits
129137 [shall prohibit] an entity defined in Section 11.003(9) from
130138 providing broadband [BPL] service to an Internet service provider
131139 or owning and operating a broadband [BPL] system as otherwise
132140 permitted by law.
133141 (b) The electric utility shall determine on a
134142 nondiscriminatory basis which Internet service providers may
135143 access excess fiber capacity on the electric utility's electric
136144 delivery system or other facilities and provide access points to
137145 allow connection between the electric utility's electric delivery
138146 system or other facilities and the systems of those Internet
139147 service providers. The electric utility shall provide access to
140148 excess fiber capacity only on reasonable and nondiscriminatory
141149 terms and conditions that assure the electric utility the
142150 unimpaired ability to comply with and enforce all applicable
143151 federal and state requirements regarding the safety, reliability,
144152 and security of the electric delivery system. [Nothing in this
145153 chapter shall prohibit an electric utility from providing
146154 construction or maintenance services to a BPL operator or BPL ISP
147155 provided that the costs of these services are properly accounted
148156 for between the electric utility and the BPL operator or BPL ISP.]
149157 Sec. 43.052. [OWNERSHIP AND OPERATION OF BPL SYSTEM. (a)
150158 An electric utility may elect to:
151159 [(1) allow an affiliate to own or operate a BPL system
152160 on the utility's electric delivery system;
153161 [(2) allow an unaffiliated entity to own or operate a
154162 BPL system on the electric utility's electric delivery system; or
155163 [(3) allow an affiliate or unaffiliated entity to
156164 provide Internet service over a BPL system.
157165 [(b) The BPL operator and the electric utility shall
158166 determine what BPL Internet service providers may have access to
159167 broadband capacity on the BPL system.
160168 [Sec. 43.053. FEES AND] CHARGES. [(a)] An electric utility
161169 that owns and operates facilities to provide middle mile broadband
162170 service may lease excess fiber capacity on the electric utility's
163171 electric delivery system or other facilities to an Internet service
164172 provider on a wholesale basis and [allows an affiliate or an
165173 unaffiliated entity to own a BPL system on the electric utility's
166174 electric delivery system] shall charge the Internet service
167175 provider [owner of the BPL system] for the use of the electric
168176 utility's [electric delivery] system for all costs associated with
169177 that use. The rates, terms, and conditions of a lease of excess
170178 fiber capacity described by this section must be nondiscriminatory.
171179 An electric utility may not lease excess fiber capacity to provide
172180 middle mile broadband service to an affiliated Internet service
173181 provider.
174182 [(b) An electric utility may pay a BPL owner, a BPL
175183 operator, or a BPL ISP for the use of the BPL system required to
176184 operate BPL utility applications.
177185 [(c) If all or part of a BPL system is installed on poles or
178186 other structures of a telecommunications utility as that term is
179187 defined in Section 51.002, the owner of the BPL system shall be
180188 required to pay the telecommunications utility an annual fee
181189 consistent with the usual and customary charges for access to the
182190 space occupied by that portion of the BPL system so installed.
183191 [(d) Notwithstanding Subsections (a)-(c):
184192 [(1) an electric utility may not charge an affiliate
185193 under this section an amount less than the electric utility would
186194 charge an unaffiliated entity for the same item or class of items;
187195 [(2) an electric utility may not pay an affiliate
188196 under this section an amount more than the affiliate would charge an
189197 unaffiliated entity for the same item or class of items; and
190198 [(3) an electric utility or an affiliate of an
191199 electric utility may not discriminate against a retail electric
192200 provider that is not affiliated with the utility in the terms or
193201 availability of BPL services.]
194202 Sec. 43.053 [43.054]. NO ADDITIONAL EASEMENTS OR
195203 CONSIDERATION REQUIRED. (a) Because broadband [BPL] systems
196204 provide benefits to electric delivery systems, the installation of
197205 facilities to provide middle mile broadband service [a BPL system]
198206 on an electric delivery system or other facilities does [shall] not
199207 require the electric utility [or the owner of the BPL system] or an
200208 entity defined in Section 11.003(9) to obtain, modify, or expand
201209 easements or other rights-of-way for the middle mile broadband
202210 service [BPL system] or to give additional consideration as a
203211 result of the installation or the operation of middle mile
204212 broadband service on the electric delivery system or other
205213 facilities of the electric utility or entity, unless the property
206214 owner protests the use as provided by this section [a BPL system].
207215 (b) Not later than the 60th day before the date an electric
208216 utility begins construction in an easement or other property right
209217 of fiber optic cables and other facilities for providing middle
210218 mile broadband service, the electric utility shall provide written
211219 notice to the owners of the affected property of the electric
212220 utility's intent to use the easement or other property right for
213221 middle mile broadband service.
214222 (c) Notice under this section must:
215223 (1) be sent by first class mail to the last known
216224 address of each person in whose name the affected property is listed
217225 on the most recent tax roll of each county authorized to levy
218226 property taxes against the property; and
219227 (2) state whether any new fiber optic cables used for
220228 middle mile broadband service will be located above or below ground
221229 in the easement or other property right.
222230 (d) Not later than the 60th day after the date an electric
223231 utility mails notice under this section, a property owner entitled
224232 to the notice may submit to the electric utility a written protest
225233 of the intended use of the easement or other property right for
226234 middle mile broadband service. An electric utility that receives a
227235 timely written protest may not use the easement or other property
228236 right for middle mile broadband service unless the protestor later
229237 agrees in writing to that use or that use is authorized by law. If a
230238 property owner fails to submit a timely written protest, an
231239 electric utility may proceed under Subsection (a) without modifying
232240 or expanding the easement for that property owner.
233241 (e) An electric utility that receives a timely written
234242 protest under Subsection (d) regarding proposed middle mile
235243 broadband service may cancel the project at any time.
236244 (f) The requirements of this section do not apply to an
237245 existing easement that permits the provision of third-party middle
238246 mile broadband service on an electric delivery system. [For
239247 purposes of this section, installation of a BPL system shall be
240248 deemed to be consistent with installation of an electric delivery
241249 system.]
242250 Sec. 43.054 [43.055]. RELIABILITY OF ELECTRIC SYSTEMS
243251 MAINTAINED. An electric utility that installs [allows the
244252 installation] and operates facilities to provide middle mile
245253 broadband service [operation of a BPL system on its electric
246254 delivery system] shall employ all reasonable measures to ensure
247255 that the operation of the middle mile broadband service [BPL
248256 system] does not interfere with or diminish the reliability of the
249257 utility's electric delivery system. If [Should] a disruption in
250258 the provision of electric service occurs [occur], the electric
251259 utility is [shall be] governed by the terms and conditions of the
252260 retail electric delivery service tariff. The electric utility may
253261 take all necessary actions regarding its middle mile broadband
254262 service and the facilities required in the provision of that
255263 service to address circumstances that may pose health, safety,
256264 security, or reliability concerns. At all times, the provision of
257265 broadband service is [services shall be] secondary to the reliable
258266 provision of electric delivery services. Except as provided by
259267 contract or tariff, an electric utility is not liable to any person,
260268 including an Internet service provider, for any damages, including
261269 direct, indirect, physical, economic, exemplary, or consequential
262270 damages, including loss of business, loss of profits or revenue, or
263271 loss of production capacity caused by a fluctuation, disruption, or
264272 interruption of middle mile broadband service that is caused in
265273 whole or in part by:
266274 (1) force majeure; or
267275 (2) the electric utility's provision of electric
268276 delivery services, including actions taken by the electric utility
269277 to ensure the reliability and security of the electric delivery
270278 system and actions taken in response to address all circumstances
271279 that may pose health, safety, security, or reliability concerns.
272280 SUBCHAPTER C. IMPLEMENTATION OF MIDDLE MILE BROADBAND SERVICE [BPL
273281 SYSTEM] BY ELECTRIC UTILITY
274282 Sec. 43.101. PARTICIPATION BY ELECTRIC UTILITY. (a) An
275283 electric utility[, through an affiliate or through an unaffiliated
276284 entity,] may [elect to] install and operate facilities to provide
277285 middle mile broadband service [a BPL system] on any part of its
278286 electric delivery system or other facilities for Internet service
279287 providers but may not construct new electric delivery facilities
280288 for the purpose of expanding the electric utility's middle mile
281289 broadband service [some or all of its electric delivery system in
282290 any part or all of its certificated service area].
283291 (b) The installation, operation, and use of middle mile
284292 broadband service and the lease of excess fiber capacity by
285293 Internet service providers from an electric utility may [a BPL
286294 system and the provision of BPL services shall] not be regulated by
287295 any state agency, a municipality, or local government other than as
288296 provided by [for in] this chapter.
289297 (c) An electric utility that owns and operates middle mile
290298 broadband service:
291299 (1) may lease excess fiber capacity on the electric
292300 utility's electric delivery system or other facilities to an
293301 Internet service provider on a wholesale basis; and
294302 (2) may not provide Internet service to end-use
295303 customers on a retail basis.
296304 (d) [(c)] The commission or a state or local government or a
297305 regulatory or quasi-governmental or a quasi-regulatory authority
298306 may not:
299307 (1) require an electric utility[, either through an
300308 affiliate or an unaffiliated entity,] to install [a BPL system on
301309 its power lines] or offer middle mile broadband service on the
302310 utility's electric delivery system or other facilities [BPL
303311 services in all or any part of the electric utility's certificated
304312 service area];
305313 (2) require an electric utility to allow others to
306314 install middle mile broadband service [a BPL system] on the
307315 utility's electric delivery system or other facilities [in any part
308316 or all of the electric utility's certificated service area]; or
309317 (3) prohibit an electric utility from installing or
310318 offering middle mile broadband service on the utility's electric
311319 delivery system or other facilities [having an affiliate or
312320 unaffiliated entity install a BPL system or offering BPL services
313321 in any part or all of the electric utility's certificated service
314322 area].
315323 (e) [(d)] If a municipality or local government is already
316324 collecting a charge or fee from the electric utility for the use of
317325 the public rights-of-way for the delivery of electricity to retail
318326 electric customers, the municipality or local government may not
319327 require [is prohibited from requiring] a franchise or an amendment
320328 to a franchise or require an additional [from requiring a] charge,
321329 fee, or tax from the electric utility [any entity] for use of the
322330 public rights-of-way for middle mile broadband service [a BPL
323331 system].
324332 (f) If the state or a municipality or local government is
325333 not already collecting a charge or fee from the electric utility for
326334 the use of the public rights-of-way, the [(e) The] state or a
327335 municipality or local government may impose a charge on the
328336 provision of middle mile broadband service [BPL services], but the
329337 charge may not be greater than the lowest charge that the state or
330338 municipality imposes on other providers of broadband service
331339 [services] for use of the public rights-of-way in its respective
332340 jurisdiction.
333341 Sec. 43.102. COMMISSION REVIEW OF UTILITY MIDDLE MILE PLAN.
334342 (a) An electric utility that plans a project to deploy middle mile
335343 broadband service shall submit to the commission a written plan
336344 that includes:
337345 (1) the route of the middle mile broadband service
338346 infrastructure proposed for the project;
339347 (2) the location of the electric utility's
340348 infrastructure that will be used in connection with the project;
341349 (3) an estimate of potential broadband customers that
342350 would be served by the Internet service provider;
343- (4) the capacity, number of fiber strands, and any
344- other facilities of the middle mile broadband service that will be
345- available to lease to Internet service providers;
346- (5) the estimated cost of the project, including
351+ (4) the estimated cost of the project, including
347352 engineering costs, construction costs, permitting costs,
348353 right-of-way costs, and a reasonable allowance for funds used
349354 during construction;
350- (6) the proposed schedule of construction for the
355+ (5) the proposed schedule of construction for the
351356 project;
352- (7) testimony, exhibits, or other evidence that
357+ (6) testimony, exhibits, or other evidence that
353358 demonstrates the project will allow for the provision and
354359 maintenance of middle mile broadband service; and
355- (8) any other information that the applicant considers
360+ (7) any other information that the applicant considers
356361 relevant or that the commission requires.
357362 (b) The commission, after notice and hearing if required by
358363 the commission, shall approve the plan if the commission finds that
359364 the plan includes all the items required by Subsection (a) and by
360365 commission rule.
361366 (c) The commission must approve, modify, or reject a plan
362367 submitted to the commission under this section not later than the
363368 181st day after the date the plan is submitted under Subsection (a).
369+ Notwithstanding any other provision of this title, if the
370+ commission approves a plan under this section, the commission shall
371+ issue a finding on the approved middle mile broadband service that:
372+ (1) the service is used and useful to the electric
373+ utility;
374+ (2) the costs associated with the service are
375+ reasonable; and
376+ (3) the service is prudent and may be included in the
377+ electric utility's rate base.
364378 (d) An approved plan may be updated or amended subject to
365379 commission approval in accordance with this section.
366380 Sec. 43.103 [43.102]. COST RECOVERY FOR DEPLOYMENT OF
367381 MIDDLE MILE BROADBAND FACILITIES [BPL AND UTILITY APPLICATIONS].
368382 (a) Where an electric utility installs facilities used to provide
369383 middle mile broadband service [permits the installation of a BPL
370384 system on its electric delivery system] under Section 43.051
371385 [43.052(a)], the electric utility's investment in those facilities
372386 is [that BPL system to directly support the BPL electric utility
373387 applications and other BPL services consumed by the electric
374388 utility that are used and useful in providing electric utility
375389 service shall be] eligible for inclusion in the electric utility's
376390 invested capital, and any fees or operating expenses that are
377391 reasonable and necessary are [shall be] eligible for inclusion as
378392 operating expenses for purposes of any proceeding under Chapter 36.
379393 The commission may allow an electric utility to recover investment
380394 and associated costs in middle mile broadband service if the plan
381395 for the service has been submitted and approved under Section
382396 43.102 [The invested capital and expenses described in this section
383397 must be allocated to the customer classes directly receiving the
384398 services].
385399 (b) In a [any] proceeding under Chapter 36, revenue received
386400 by an electric utility from an Internet service provider for the use
387401 of middle mile broadband service must be applied as a revenue credit
388402 to customers in proportion to the customers' funding of the
389403 underlying infrastructure [just and reasonable charges for the use
390404 of the electric utility's electric delivery system by a BPL owner or
391405 operator shall be limited to the usual and customary pole
392406 attachment charges paid to the electric utility for comparable
393407 space by cable television operators].
394408 [(c) The revenues of an affiliated BPL operator or an
395409 affiliated BPL ISP shall not be deemed the revenues of an electric
396410 utility for purposes of setting rates under Chapter 36.]
397411 SUBCHAPTER D. MISCELLANEOUS PROVISIONS
398412 Sec. 43.151. [AFFILIATES OF ELECTRIC UTILITY. (a) Subject
399413 to the limitations of this chapter, an electric utility may have a
400414 full or partial ownership interest in a BPL operator or a BPL
401415 ISP. Whether a BPL operator or a BPL ISP is an affiliate of the
402416 electric utility shall be determined under Section 11.003(2) or
403417 Section 11.006.
404418 [(b) Neither a BPL operator nor a BPL ISP shall be
405419 considered a "competitive affiliate" of an electric utility as that
406420 term is defined in Section 39.157.
407421 [Sec. 43.152.] COMPLIANCE WITH FEDERAL AND STATE LAW. An
408422 electric utility that owns and operates facilities for the
409423 provision of middle mile broadband service [BPL operators] shall
410424 comply with all applicable federal and state laws[, including those
411425 protecting licensed spectrum users from interference by BPL
412426 systems. The operator of a radio frequency device shall be
413427 required to cease operating the device upon notification by a
414428 Federal Communications Commission or Public Utilities Commission
415429 representative that the device is causing harmful
416430 interference. Operation shall not resume until the condition
417431 causing the harmful interference has been corrected].
418432 SECTION 2. Section 33.001(b), Utilities Code, is repealed.
419433 SECTION 3. Not later than the 270th day after the effective
420434 date of this Act, the Public Utility Commission of Texas shall adopt
421435 any rules necessary to implement Chapter 43, Utilities Code, as
422436 amended by this Act.
423437 SECTION 4. The Public Utility Commission of Texas is
424438 required to implement a provision of this Act only if the
425439 legislature appropriates money specifically for that purpose. If
426440 the legislature does not appropriate money specifically for that
427441 purpose, the commission may, but is not required to, implement a
428442 provision of this Act using other appropriations that are available
429443 for that purpose.
430444 SECTION 5. This Act takes effect immediately if it receives
431445 a vote of two-thirds of all the members elected to each house, as
432446 provided by Section 39, Article III, Texas Constitution. If this
433447 Act does not receive the vote necessary for immediate effect, this
434448 Act takes effect September 1, 2021.
435- ______________________________ ______________________________
436- President of the Senate Speaker of the House
437- I certify that H.B. No. 3853 was passed by the House on April
438- 27, 2021, by the following vote: Yeas 147, Nays 0, 1 present, not
439- voting; and that the House concurred in Senate amendments to H.B.
440- No. 3853 on May 28, 2021, by the following vote: Yeas 145, Nays 0,
441- 1 present, not voting.
442- ______________________________
443- Chief Clerk of the House
444- I certify that H.B. No. 3853 was passed by the Senate, with
445- amendments, on May 22, 2021, by the following vote: Yeas 30, Nays
446- 0.
447- ______________________________
448- Secretary of the Senate
449- APPROVED: __________________
450- Date
451- __________________
452- Governor
449+ * * * * *