Bill Text: TX SB1211 | 2019-2020 | 86th Legislature | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to regulation of mergers and consolidations of power generation companies.

Spectrum: Moderate Partisan Bill (Republican 5-1)

Status: (Passed) 2019-06-04 - Effective on 9/1/19 [SB1211 Detail]

Download: Texas-2019-SB1211-Comm_Sub.html
 
 
  By: Hancock S.B. No. 1211
 
  (King of Parker, Patterson, Harless, Parker,
 
  Hernandez)
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to regulation of mergers and consolidations of power
  generation companies.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Section 39.158, Utilities Code, is amended by
  amending Subsection (a) and adding Subsections (a-1), (a-2), and
  (a-3) to read as follows:
         (a)  A power generation company [An owner of electric
  generation facilities] that offers electricity for sale in this
  [the] state in a power region open to customer choice and proposes a
  transaction to merge, consolidate, or otherwise become affiliated
  with another power generation company [owner of electric generation
  facilities] that offers electricity for sale in this state in the
  same power region shall obtain the approval of the commission
  before closing if the merged, consolidated, or affiliated entity
  would own and control more than 10 [electricity offered for sale in
  the power region by the merged, consolidated, or affiliated entity
  will exceed one] percent of the total installed generation capacity
  located in, or capable of delivering electricity to, [electricity
  for sale in] the power region.
         (a-1)  An [The] approval required by Subsection (a) must
  [shall] be requested at least 120 days before the date of the
  proposed closing of the transaction.
         (a-2)  The commission shall approve a [the] transaction
  described by Subsection (a) unless the commission finds that the
  transaction results in a violation of Section 39.154.  If the
  commission finds that the transaction as proposed would violate
  Section 39.154, the commission may condition approval of the
  transaction on adoption of reasonable modifications to the
  transaction as prescribed by the commission to mitigate potential
  market power abuses.
         (a-3)  If the commission does not issue an order consistent
  with Subsection (a-2) before the 121st day after the date the
  commission receives a request for approval under Subsection (a),
  the request is considered approved by the commission.
         SECTION 2.  Section 39.158(a), Utilities Code, as amended by
  this Act, and Sections 39.158(a-1), (a-2), and (a-3), Utilities
  Code, as added by this Act, apply only to a request for an approval
  of a transaction received by the Public Utility Commission of Texas
  on or after the effective date of this Act.  A request for an
  approval received by that commission before the effective date of
  this Act is governed by the law in effect immediately before the
  effective date of this Act, and that law is continued in effect for
  that purpose.
         SECTION 3.  This Act takes effect September 1, 2019.
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