2023S0290-T 03/10/23
By: Hall S.B. No. 2460
A BILL TO BE ENTITLED
AN ACT
relating to the right of an electric cooperative to construct,
maintain, and operate facilities.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 41.005, Utilities Code, is amended to
read as follows:
Sec. 41.005. LIMITATION ON MUNICIPAL AUTHORITY.
Notwithstanding any other provision of this title, a municipality
may not directly or indirectly regulate the rates, operations, and
services, as that term is defined under Section 11.003, Utilities
Code, including transmission services, as that term is defined
under Section 31.002, Utilities Code, of an electric cooperative,
except, with respect to operations, a municipality may impose
conditions reasonably [to the extent] necessary to protect the
public health, safety, or welfare. This section does not prohibit a
municipality from making a lawful charge for the use of public
rights-of-way within the municipality as provided by Section
182.025, Tax Code, and Section 33.008. An electric cooperative
shall be an electric utility for purposes of Section 182.025, Tax
Code, and Section 33.008.
SECTION 2. Section 31.002(20), Utilities Code, is amended
to read as follows:
(20) "Transmission service" includes construction or
enlargement of facilities, siting of infrastructure facilities,
transmission over distribution facilities, control area services,
scheduling resources, regulation services, reactive power support,
voltage control, provision of operating reserves, and any other
associated electrical service the commission determines
appropriate, except that, on and after the implementation of
customer choice, control area services, scheduling resources,
regulation services, provision of operating reserves, and reactive
power support, voltage control, and other services provided by
generation resources are not "transmission service."
SECTION 3. Section 37.052, Utilities Code, is amended by
adding Subsection (d) to read as follows:
(d) If an electric utility requests consent under
Subsection (c)(2) from a municipality, the municipality must grant
or deny such request within 90 days of the electric utility's
request for consent. If the municipality fails to grant or deny
consent within 90 days of the electric utility's consent, the
electric utility is presumed to have been granted such consent.
SECTION 4. Section 181.041(1), Utilities Code, is amended
to read as follows:
(1) "Electric utility" means:
(A) [an electric cooperative organized under
Chapter 161;
[(B)] a corporation or river authority, if the
river authority is created by a statute of this state:
(i) that generates, transmits, or
distributes electric energy in this state; and
(ii) whose operations are subject to the
judicial and legislative processes of this state; or
(B) [(C)] a municipal electric utility.
SECTION 5. Section 161.125, Utilities Code, is amended to
read as follows:
Sec. 161.125. EMINENT DOMAIN AND AUTHORITY TO CONSTRUCT,
MAINTAIN, AND OPERATE FACILITIES. (a) An electric cooperative may
exercise the power of eminent domain in the manner provided by state
law for acquiring private property for public use. The power does
not apply to state property or property of a political subdivision
in this state.
(b) An electric cooperative has the right to construct,
maintain, and operate facilities over, under, across, on, or along
state property or property of a political subdivision in this
state.
(1) An electric cooperative may exercise this
authority subject to reasonable conditions of the relevant state
agency or governing body of the political subdivision necessary to
protect the public health, safety, or welfare.
(2) Any such conditions must be issued by the relevant
state agency or governing body of the political subdivision within
90 days of notice by the electric cooperative.
(3) The electric cooperative shall be authorized to
proceed with the construction, maintenance, and operation of the
facilities by the earlier of:
(A) the date the conditions issued under
Subsection (b)(2) are satisfied; or
(B) a date that is not later than 120 days after
any such conditions under Subsection (b)(2) are issued by the
relevant state agency or governing body of the political
subdivision.
(4) An electric cooperative exercising this right
shall be subject to the requirements applicable to electric
utilities under Sections 181.044, 181.045, and 181.046, Utilities
Code.
SECTION 6. This Act takes effect September 1, 2023.