HBA-TYH H.B. 2899 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2899
By: Counts
State Affairs
4/7/1999
Introduced



BACKGROUND AND PURPOSE 

Currently, legislation is being considered in both the House and the Senate
that would change the regulated environment in which utility companies
operate.  If such a bill passes, the functions of the Public Utility
Commission (commission) will be redefined by the bill.   However, the
commission has already shown an inclination to impose restructuring by
rule, including allowing utilities to collect "stranded costs" in
anticipation of electric restructuring.  H.B. 2899 prohibits the commission
from restructuring the electric utility industry by rule and allowing
multiple certification by rule. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Subchapter A, Chapter 35, Utilities Code, by adding
Section 35.0082, as follows: 
 
Sec. 35.0082.  RETAIL WHEELING PROHIBITED.  Prohibits the Public Utility
Commission of Texas (commission), by order, rule, regulation or otherwise,
from requiring an electric utility to transmit electricity for another
entity, including another electric utility, to an end-use customer,
regardless of whether the utility will be paid for the use of its
distribution facilities.  Prohibits the commission, by order, rule,
regulation or otherwise, from requiring an electric utility to perform the
enumerated actions. 

SECTION 2.  Amends Subchapter B, Chapter 37, Utilities Code, by adding
Section 37.060, as follows:  

Sec.  37.060.  MULTIPLE CERTIFICATION.  Prohibits the commission, unless
the affected retail electric utility agrees in writing, from granting  a
retail electric utility certificate to serve an area if the effect of the
grant would cause the area to be multiply certificated. 

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.