HBA-DMD H.B. 3203 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3203 By: Danburg State Affairs 4/8/1999 Introduced BACKGROUND AND PURPOSE Because retail competition in their core business could lead to reduced revenues, electric utilities or their parent corporations are diversifying into other regulated businesses. H.B. 3203 requires the Public Utility Commission (commission) to establish rules prohibiting a regulated utility from providing retail customer energy services which are available in the market, such as air conditioning installation and repair, lighting, building controls, electrical wiring installation or related services. This bill also requires the commission to establish rules limiting the relationship of a regulated utility with its affiliates in order to avoid anti-competitive abuses of market power. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly delegated to the Public Utility Commission in SECTION 1 (Section 38.023, Utilities Code) of this bill. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter B, Chapter 38, Utilities Code, by adding Section 38.023, as follows: Sec. 38.023. COMPETITIVE ACTIVITIES AND LIMITATIONS ON A UTILITY WITH REGARD TO ITS AFFILIATES. (a) Requires the Public Utility Commission (commission) to establish rules prohibiting a regulated utility from providing retail customer energy services which are available in the market, such as air conditioning installation and repair, lighting, building controls, electrical wiring installation or related services. (b) Requires the commission to establish rules limiting the relationship of a regulated utility with its affiliates in order to avoid anti-competitive abuses of market power. Requires the rule to establish the requirements for the implementation of contracts between regulated utilities and their affiliates and set forth the requirements for enforcement including the compliance proceedings necessary to assure certain provisions. SECTION 2.Effective date: September 1, 1999. SECTION 3.Emergency clause.