84R4406 DDT-F
	By: Krause	H.B. No. 962

	A BILL TO BE ENTITLED
	AN ACT
	relating to the regulation of the amount of installed electric
	generation capacity.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
	SECTION 1.  Section 39.001, Utilities Code, is amended by
	amending Subsection (a) and adding Subsection (d-1) to read as
	follows:
	(a)  The legislature finds that the production and sale of
	electricity is not a monopoly warranting regulation of rates,
	operations, and services and that the public interest in
	competitive electric markets requires that, except for
	transmission and distribution services and for the recovery of
	stranded costs, generation capacity and electric services and their
	prices should be determined by customer choices and the normal
	forces of competition. As a result, this chapter is enacted to
	protect the public interest during the transition to and in the
	establishment of a fully competitive electric power industry.
	(d-1)  The legislature finds that the amount of installed
	generation capacity is best determined by investor, generator, and
	customer choices through the normal forces of competition. As a
	result, regulatory authorities may not mandate or otherwise
	regulate the amount of installed generation capacity or require a
	surplus or reserve of installed generation capacity above actual or
	forecasted levels of load.
	SECTION 2.  Section 39.152(a), Utilities Code, is 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; and
	(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 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].
	SECTION 3.  Section 39.262(d), Utilities Code, is amended to
	read as follows:
	(d)  The affiliated power generation company shall
	reconcile, and either credit or bill to the transmission and
	distribution utility, the net sum of:
	(1)  the former electric utility's final fuel balance
	determined under Section 39.202(c); and
	(2)  any difference between the price of power obtained
	through the capacity auctions under Section [Sections] 39.153 and
	former Section 39.156 and the power cost projections that were
	employed for the same time period in the ECOM model to estimate
	stranded costs in the proceeding under Section 39.201.
	SECTION 4.  Sections 39.152(d), 39.153(d), 39.154, 39.156,
	39.157(c), and 39.158(a), Utilities Code, are repealed.
	SECTION 5.  This Act takes effect September 1, 2015.