Bill Text: TX HB4002 | 2023-2024 | 88th Legislature | Introduced
Bill Title: Relating to water control and improvement district customers of certain electric cooperatives.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-03-20 - Referred to State Affairs [HB4002 Detail]
Download: Texas-2023-HB4002-Introduced.html
| 88R13770 TYPED | ||
| By: Goldman | H.B. No. 4002 | |
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| relating to water control and improvement district customers of | ||
| certain electric cooperatives. | ||
| BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
| SECTION 1. It is the intent of the legislature that this Act | ||
| ensure cost-effective and reliable siting of critical water | ||
| infrastructure operated by a water control and improvement | ||
| district. | ||
| SECTION 2. Subchapter B, Chapter 37, Utilities Code, is | ||
| amended by adding Section 37.062 to read as follows: | ||
| Sec. 37.062. SERVICE AREA EXCEPTION REQUESTED BY CERTAIN | ||
| WATER CONTROL AND IMPROVEMENT DISTRICTS. (a) In this section: | ||
| (1) "Consenting entity" means an electric utility that | ||
| consents to providing a district with retail electric service; | ||
| (2) "District" means a water control and improvement | ||
| district; | ||
| (3) "District facility" means a power-consuming | ||
| facility owned by a district that takes retail electric service at | ||
| transmission voltage; | ||
| (4) "ERCOT" has the meaning assigned by Section | ||
| 31.002; | ||
| (5) "Requesting district" means a water control and | ||
| improvement district that has requested to receive retail electric | ||
| service provided at transmission voltage from a consenting entity | ||
| other than the electric cooperative certificated to provide the | ||
| district with such service. | ||
| (b) This section applies only to a water control and | ||
| improvement district that: | ||
| (1) receives retail electric service in ERCOT from an | ||
| electric cooperative on the date this Act takes effect; | ||
| (2) has the authority to impose an ad valorem tax; and | ||
| (3) only provides wholesale water service. | ||
| (c) Notwithstanding any other provision of this chapter, on | ||
| the request of a water control and improvement district described | ||
| by Subsection (b) of this section, a consenting utility may request | ||
| a service area exception from the commission to provide retail | ||
| electric service to the requesting district at: | ||
| (1) the location of a designated district facility | ||
| where the requesting district is currently receiving retail | ||
| electric service from an electric cooperative on the date the | ||
| request for service area exception is filed with the commission; or | ||
| (2) the site of a future district facility that will be | ||
| located in the certificated area of the electric cooperative. | ||
| (d) A consenting entity may request a service area exception | ||
| under Subsection (c) of this section if the consenting entity: | ||
| (1) has an existing certificated area on the date the | ||
| request is filed that is contiguous to the certificated area of the | ||
| electric cooperative from which the district facility is receiving | ||
| service or the site where a future district facility will receive | ||
| service; and | ||
| (2) has an existing certificated area within 10 miles | ||
| or less of the applicable district facility. | ||
| (e) Section 37.056(c) does not apply to a request filed | ||
| under Subsection (c) of this section. | ||
| (f) Notwithstanding any other provision in 16 T.A.C. | ||
| Chapter 25, an electric cooperative may not contest and need not | ||
| consent to an application filed under Subsection (c) of this | ||
| section. | ||
| (g) The commission shall grant an application received | ||
| under Subsection (c) of this section within 45 days of the filing of | ||
| a complete application, and in accordance with the application | ||
| shall either: | ||
| (1) amend the consenting entity's certificate to | ||
| include the locations of each water control and improvement | ||
| district facility identified in the application; and amend the | ||
| certificate of the electric cooperative that was previously | ||
| certificated, on the date the application was filed, to remove the | ||
| locations of each water control and improvement district facility | ||
| identified in the application; or | ||
| (2) notwithstanding Section 37.060 or any other | ||
| provision of this chapter, amend the consenting entity's | ||
| certificate to include the locations of each water control and | ||
| improvement district facility identified in the application. | ||
| (h) Following approval of an application under this | ||
| section, a requesting district shall be responsible for paying | ||
| associated costs as follows: | ||
| (1) construction costs of any new transmission | ||
| facilities required to interconnect the district facilities | ||
| identified in the application to the consenting entity's | ||
| transmission system, to the extent that such costs are not | ||
| otherwise recoverable in the consenting utility's wholesale | ||
| transmission rates; | ||
| (2) any nonbypassable charges and other amounts that | ||
| the district is contractually obligated to pay to the electric | ||
| cooperative that was providing retail transmission service to the | ||
| requesting district on the date the application was filed; and | ||
| (3) other than the costs described in Subsection | ||
| (h)(2) of this section, the requesting district is not required to | ||
| pay additional stranded costs or penalties to the electric | ||
| cooperative as a result of the service area exception. | ||
| (i) The commission may only approve one application per | ||
| district facility from each water control and improvement district | ||
| under this section. | ||
| SECTION 3. This Act takes effect September 1, 2023. | ||
