By: Hancock S.B. No. 1655
A BILL TO BE ENTITLED
AN ACT
relating to the amendment of a certificate of convenience and
necessity to provide electricity service to certain water control
and improvement districts.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. It is the intent of the legislature that this Act
ensure cost-effective and reliable operation in times of emergency
of critical water infrastructure operated by a water control and
improvement district.
SECTION 2. Subchapter B, Chapter 37, Utilities Code, is
amended by adding Section 37.062 to read as follows:
Sec. 37.062. AMENDMENT OF CERTIFICATE REQUESTED BY CERTAIN
WATER CONTROL AND IMPROVEMENT DISTRICTS. (a) In this section:
(1) "Consenting entity" means an electric utility that
consents to provide a water control and improvement district with
retail electric service.
(2) "District facility" means an existing or future
transmission-level power-consuming facility that is owned or will
be owned by a water control and improvement district.
(b) This section applies only to a water control and
improvement district that:
(1) owns or will own a district facility in an area
certificated by an electric cooperative to provide retail electric
service; and
(2) has a service area in 10 counties or more.
(c) Notwithstanding any other provision of this chapter, on
the request of a water control and improvement district in an area
certificated by an electric cooperative whose wholesale power
purchase agreement has previously been interrupted by the
bankruptcy of its wholesale power supplier, a consenting entity may
apply to the commission to amend its certificate to allow the
consenting entity to provide retail electric service at
transmission voltage to a district facility if the consenting
entity is already certificated on the date the application is filed
to provide transmission service to a location that is not more than
10 miles from the district facility.
(d) The commission shall approve an application received
under Subsection (c) not later than the 45th day after the date a
complete application is filed and amend the consenting entity's
certificate to include the locations of the district facilities
identified in the application, making those facilities multiply
certificated by the consenting entity and the electric cooperative
referenced in Subsection (b)(1).
(e) The consent of an electric cooperative referenced in
Subsection (b)(1) is not required for the commission to approve an
application filed under Subsection (c).
(f) Section 37.056(c) does not apply to an application filed
under Subsection (c).
(g) A water control and improvement district that requests
retail electric service from a consenting entity who files an
application under this section that is approved by the commission
is:
(1) responsible for paying the construction costs of
any new transmission facilities required to interconnect the
district facilities identified in the application to the ERCOT
transmission system if those costs are not otherwise recoverable in
the consenting entity's wholesale transmission rates;
(2) responsible for any nonbypassable charges and
other amounts that the district is contractually obligated to pay
to the electric cooperative that provided retail electric service
to the district on the date the application was filed, if
applicable; and
(3) subject to the relevant provisions of 16 T.A.C.
Section 25.27.
(h) If the commission approves an application under this
section, the commission may not approve another application
regarding any district facility included in the approved
application.
SECTION 3. This Act takes effect September 1, 2023.