Bill Text: TX HB4054 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to a landowner petition to partition and transfer a geographic portion of a service area of an electric cooperative.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2019-03-21 - Referred to State Affairs [HB4054 Detail]
Download: Texas-2019-HB4054-Introduced.html
| 86R13517 GRM-D | ||
| By: Wilson | H.B. No. 4054 | |
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| relating to a landowner petition to partition and transfer a | ||
| geographic portion of a service area of an electric cooperative. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter B, Chapter 39, Utilities Code, is | ||
| amended by adding Section 39.056 to read as follows: | ||
| Sec. 39.056. LANDOWNER PETITION TO TRANSFER TERRITORY TO | ||
| COMPETITIVE RETAIL MARKET. (a) The owner of a parcel of land part | ||
| of which is in an area open to competition in ERCOT and part of which | ||
| is in the certificated service area of an electric cooperative | ||
| created under Chapter 161 may petition the commission to: | ||
| (1) partition the part of the land that is subject to | ||
| the electric cooperative's certificate of convenience and | ||
| necessity; | ||
| (2) transfer the land described by Subdivision (1) to | ||
| the certificated service area of a transmission and distribution | ||
| utility that serves the part of the land that is in the area open to | ||
| competition; and | ||
| (3) amend accordingly the certificate of convenience | ||
| and necessity of the: | ||
| (A) electric cooperative; and | ||
| (B) transmission and distribution utility. | ||
| (b) The petition must provide the commission with an | ||
| accurate description of the land as necessary to facilitate the | ||
| requested action. | ||
| (c) The commission shall hold a hearing on the petition. If | ||
| the commission determines the partition and transfer of territory | ||
| is in the best interest of ratepayers, the commission shall approve | ||
| the partition and conduct a proceeding to effectuate the transfer. | ||
| (d) Through the proceeding, the commission shall determine | ||
| the net book value of all of the cooperative's electric | ||
| distribution assets attributable to the service area that is | ||
| proposed to be transferred. | ||
| (e) Not later than the 90th day after the date the | ||
| commission determines the value of the cooperative's electric | ||
| distribution assets attributable to the transferred service area, | ||
| the transmission and distribution utility shall compensate the | ||
| cooperative for the assets as directed by the commission. | ||
| (f) The commission shall amend or issue certificates of | ||
| convenience and necessity to implement the transfer of the service | ||
| area. | ||
| (g) The commission shall adopt rules to implement this | ||
| section. | ||
| SECTION 2. This Act takes effect September 1, 2019. | ||
