Bill Text: TX HB1461 | 2017-2018 | 85th Legislature | Introduced
Bill Title: Relating to the partition and transfer of a geographic portion of service area certificate of convenience and necessity by municipally owned electric utility systems.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-03-07 - Referred to State Affairs [HB1461 Detail]
Download: Texas-2017-HB1461-Introduced.html
| 85R3157 GRM-F | ||
| By: Workman | H.B. No. 1461 | |
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| relating to the partition and transfer of a geographic portion of | ||
| service area certificate of convenience and necessity by | ||
| municipally owned electric utility systems. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. Subchapter C, Utilities Code, is amended by | ||
| adding Section 37.103 to read as follows: | ||
| Sec. 37.103. PARTITION AND TRANSFER OF CERTIFICATE FOR | ||
| CERTAIN UTILITIES. (a) This section applies only to a municipally | ||
| owned electric utility system with 400,000 or more customers that | ||
| is owned by a municipality with a population of less than 850,000. | ||
| (b) A municipally owned electric utility system shall | ||
| identify and transfer to a nonprofit electric cooperative created | ||
| under Chapter 161 that serves more than 64,000 members the part of | ||
| the system's certificated service area that is not in the | ||
| certificated service area of another utility or dually certificated | ||
| and that is: | ||
| (1) outside the owning municipality's city limits; and | ||
| (2) located inside the county in which the owning | ||
| municipality is primarily located. | ||
| (c) The utility system shall sell to the electric | ||
| cooperative that will provide service to the partitioned area at | ||
| net book value all of the system's electric distribution assets | ||
| attributable to the transferred service area that are used to serve | ||
| the area. Generation assets and transmission service facilities | ||
| are not subject to sale under this subsection. | ||
| (d) The commission shall: | ||
| (1) review and approve the identification and transfer | ||
| of the service area to ensure compliance with this section; | ||
| (2) as necessary, amend or issue certificates of | ||
| convenience and necessity to implement the transfer of the service | ||
| area; and | ||
| (3) identify, oversee, and approve the sale of assets. | ||
| (e) This section expires September 1, 2019. | ||
| SECTION 2. The Public Utility Commission of Texas shall | ||
| ensure that the transfer and sales required by Section 37.103, | ||
| Utilities Code, as added by this Act, shall be completed not later | ||
| than September 1, 2018. | ||
| SECTION 3. This Act takes effect September 1, 2017. | ||
