Bill Text: TX HB4376 | 2021-2022 | 87th Legislature | Introduced

---

Bill Title: Relating to regulation of ownership and control of installed electric generation capacity.

Sponsorship: Partisan Bill (Republican 1)

Status: (Introduced - Dead) 2021-03-29 - Referred to State Affairs [HB4376 Detail]

Download: Texas-2021-HB4376-Introduced.html

---

87R3103 BRG-F
By: Kacal H.B. No. 4376

A BILL TO BE ENTITLED
AN ACT
relating to regulation of ownership and control of installed
electric generation capacity.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Sections 39.152(a) and (d), Utilities Code, are
amended to read as follows:
(a) The commission shall certify a power region if:
(1) a sufficient number of interconnected utilities in
the power region fall under the operational control of an
independent organization as described by Section 39.151;
(2) the power region has a generally applicable tariff
that guarantees open and nondiscriminatory access for all users to
transmission and distribution facilities in the power region as
provided by Section 39.203; and
(3) no person owns and controls more than 25 [20]
percent of the installed generation capacity located in or capable
of delivering electricity to a power region, as determined
according to Section 39.154.
(d) For a power region outside of ERCOT, a power generation
company that is affiliated with an electric utility may elect to
demonstrate that it meets the requirements of Subsection (a)(3) by
showing that it does not own and control more than 25 [20] percent
of the installed capacity in a geographic market that includes the
power region, using the guidelines, standards, and methods adopted
by the Federal Energy Regulatory Commission.
SECTION 2. Section 39.154(a), Utilities Code, is amended to
read as follows:
(a) A [Beginning on the date of introduction of customer
choice, a] power generation company may not own and control more
than 25 [20] percent of the installed generation capacity located
in, or capable of delivering electricity to, a power region.
SECTION 3. Section 39.156(f), Utilities Code, is amended to
read as follows:
(f) The commission shall approve, modify, or reject a plan
within 180 days after the date the plan is filed [of a filing under
Subsection (b)]. The commission may not modify a plan to require
divestiture by the electric utility or the power generation
company.
SECTION 4. Section 39.407(a), Utilities Code, is amended to
read as follows:
(a) If an electric utility chooses on or after January 1,
2007, to participate in customer choice, the commission may not
authorize customer choice until the applicable power region has
been certified as a qualifying power region under Section
39.152(a). Except as otherwise provided by this subsection, the
commission shall certify that the requirements of Section
39.152(a)(3) are met for electric utilities subject to this
subchapter only upon a finding that the total capacity owned and
controlled by each such electric utility and its affiliates does
not exceed 25 [20] percent of the total installed generation
capacity within the constrained geographic region served by each
such electric utility plus the total available transmission
capacity capable of delivering firm power and energy to that
constrained geographic region. Not later than May 1, 2002, each
electric utility subject to this subchapter shall submit to the
electric utility restructuring legislative oversight committee an
analysis of the needed transmission facilities necessary to make
the electric utility's service area transmission capability
comparable to areas within the ERCOT power region. On or after
September 1, 2003, each electric utility subject to this subchapter
shall file the utility's plans to develop the utility's
transmission interconnections with the utility's power region or
other adjacent power regions. The commission shall review the plan
and not later than the 180th day after the date the plan is filed,
determine the additional transmission facilities necessary to
provide access to power and energy that is comparable to the access
provided in areas within the ERCOT power region; provided, however,
that if a hearing is requested by any party to the proceeding, the
180-day deadline will be extended one day for each day of hearings.
The commission shall, as a part of the commission's approval of the
plan, approve a rate rider mechanism for the recovery of the
incremental costs of those facilities after the facilities are
completed and in-service. A finding of need under this subsection
shall meet the requirements of Sections 37.056(c)(1), (2), and
(4)(E). The commission may certify that the requirements of
Section 39.152(a)(3) are met for electric utilities subject to this
subchapter if the commission finds that:
(1) each such utility has sufficient transmission
facilities to provide customers access to power and energy from
capacity controlled by suppliers not affiliated with the incumbent
utility that is comparable to the access to power and energy from
capacity controlled by suppliers not affiliated with the incumbent
utilities in areas of the ERCOT power region; and
(2) the total capacity owned and controlled by each
such electric utility and its affiliates does not exceed 25 [20]
percent of the total installed generation capacity within the power
region.
SECTION 5. Section 39.453(b), Utilities Code, is amended to
read as follows:
(b) The commission shall certify that the requirement of
Section 39.152(a)(3) is met for an electric utility subject to this
subchapter only if the commission finds that the total capacity
owned and controlled by the electric utility and the utility's
affiliates does not exceed 25 [20] percent of the total installed
generation capacity within the power region of that utility.
SECTION 6. Section 39.156(b), Utilities Code, is repealed.
SECTION 7. This Act takes effect September 1, 2021.