Texas Utilities Code - Section 39.051. Unbundling
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Texas Laws > Utilities Code > Texas Utilities Code - Section 39.051. Unbundling
§ 39.051. UNBUNDLING. (a) On or before September 1,
2000, each electric utility shall separate from its regulated
utility activities its customer energy services business
activities that are otherwise also already widely available in the
competitive market.
(b) Not later than January 1, 2002, each electric utility
shall separate its business activities from one another into the
following units:
(1) a power generation company;
(2) a retail electric provider; and
(3) a transmission and distribution utility.
(c) An electric utility may accomplish the separation
required by Subsection (b) either through the creation of separate
nonaffiliated companies or separate affiliated companies owned by a
common holding company or through the sale of assets to a third
party. An electric utility may create separate transmission and
distribution utilities. Notwithstanding any other provision of
this chapter, an electric utility that does not have stranded costs
described by Section 39.254 and that on September 1, 2005, has not
finalized unbundling pursuant to a commission order approving an
unbundling plan may also meet the requirements of Subsection (b)
for generation facilities existing on September 1, 2005, in the
Electric Reliability Council of Texas if it meets and maintains
compliance with the following requirements:
(1) the electric utility has no more than 400
megawatts of Texas jurisdictional capacity from generating units
within the Electric Reliability Council of Texas that have not been
mothballed or retired;
(2) the electric utility has a contract or contracts
with separate nonaffiliated companies or separate affiliated
companies for the sale of all of the output from its generating
units that have not been mothballed or retired with a contract term
that is no shorter than 20 years or the life of the generating
units, whichever is shorter; and
(3) the electric utility has a separate division
within the electric utility for its generation business activities.
(c-1) A separate division described by Subsection (c)(3) is
subject to Subsection (d) and, for the purposes of this chapter, is
considered a separate affiliated power generation company and a
competitive affiliate.
(d) Each electric utility shall unbundle under this section
in a manner that provides for a separation of personnel,
information flow, functions, and operations, consistent with
Section 39.157(d).
(e) Each electric utility shall file with the commission a
plan to implement this section by January 10, 2000.
(f) The commission shall adopt the utility's plan for
business separation required by Subsection (b), adopt the plan with
changes, or reject the plan and require the utility to file a new
plan.
(g) Transactions by electric utilities involving sales,
transfers, or other disposition of assets to accomplish the
purposes of this section are not subject to Section 14.101, 35.034,
or 35.035.
Added by Acts 1999, 76th Leg., ch. 405, § 39, eff. Sept. 1, 1999.
Amended by Acts 2005, 79th Leg., ch. 413, § 3, eff. June 17,
2005.
Section: 38.022 38.051 38.052 38.071 39.001 39.002 39.003 39.051 39.052 39.053 39.054 39.055 39.101 39.102 39.1025
Last modified: August 11, 2007
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