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2003 SESSION

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HB 2453 Electric utility restructuring; regional transmission entities.

Introduced by: Harry J. Parrish | all patrons    ...    notes | add to my profiles | history

SUMMARY AS ENACTED WITH GOVERNOR'S RECOMMENDATION:

Electric utility restructuring; regional transmission entities. Delays the date by which incumbent electric utilities with transmission capacity must join a regional transmission entity (RTE). The Electric Utility Restructuring Act originally required utilities to join an RTE by January 1, 2001. This measure provides that utilities shall not join an RTE prior to July 1, 2004. Utilities are required to file an application to join an RTE by July 1, 2003, and to transfer management and control of transmission assets to the RTE by January 1, 2005, subject to State Corporation Commission approval. Prior to approving a request to join an RTE, the Commission must determine that the action will (i) ensure that consumers' needs for economic and reliable transmission are met and (ii) meet the transmission needs of electric generation suppliers that do not own, operate, control or have an entitlement to transmission capacity. In addition, requests for approval shall include a study of comparative costs and benefits, including an analysis of the economic effects of the transfer on consumers and the effects of transmission congestion costs. This bill has an emergency clause.

SUMMARY AS PASSED:

Electric utility restructuring; regional transmission entities. Delays the date by which incumbent electric utilities with transmission capacity must join a regional transmission entity (RTE). The Electric Utility Restructuring Act originally required utilities to join an RTE by January 1, 2001. This measure provides that utilities shall not join an RTE prior to July 1, 2004. Utilities are required to file an application to join an RTE by July 1, 2003, and to transfer management and control of transmission assets to the RTE by January 1, 2005, subject to State Corporation Commission approval. Prior to approving a request to join an RTE, the Commission must determine that the action will (i) ensure that consumers' needs for economic and reliable transmission are met and (ii) meet the transmission needs of electric generation suppliers that do not own, operate, control or have an entitlement to transmission capacity. In addition, requests for approval shall include a study of comparative costs and benefits, including an analysis of the economic effects of the transfer on consumers and the effects of transmission congestion costs.

SUMMARY AS PASSED HOUSE:

Electric utility restructuring; regional transmission entities. Eliminates the January 1, 2001, deadline by which incumbent electric utilities with transmission capacity were to have joined or established a regional transmission entity. Such incumbent electric utilities shall not transfer ownership or control of, or operational responsibility over, any transmission system to any person prior to July 1, 2004, and without the State Corporation Commission's prior approval, following notice and hearing, and a finding that the transfer satisfies specific conditions. If an incumbent electric utility has applied for Commission approval by July 1, 2003, it shall complete the transfer, if approval is obtained, by January 1, 2005. The Commission's rules and regulations under which an incumbent electric utility may transfer control, ownership or responsibility to a regional transmission entity are amended to eliminate the condition that they be consistent with ensuring the successful development of interstate regional transmission entities. New conditions require that transfers be consistent with (i) ensuring that consumers' needs for economic and reliable transmission are met and (ii) meeting the transmission needs of electric generation suppliers that do not own, operate, control or have an entitlement to transmission capacity. In addition, requests for approval of transfers shall include a study of their comparative costs and benefits, including an analysis of the economic effects of the transfer on consumers, including the effects of transmission congestion costs. If a proposed transfer does not satisfy a condition for approval, the Commission may require, as a condition of approval, that after the transfer the transmission system be upgraded or the constraint be mitigated. The SCC is also required to determine that the impact of any transmission congestion costs attributable to existing constraints can be reasonably mitigated by the actions of load serving entities. This measure does not apply to a utility that transferred functional control of its transmission facilities to a regional transmission entity, pursuant to federal authorization, on or before January 1, 2003.

SUMMARY AS INTRODUCED:

Electric utility restructuring; regional transmission entities. Eliminates the January 1, 2001, deadline by which incumbent electric utilities with transmission capacity were to have joined or established a regional transmission entity. Such incumbent electric utilities shall not transfer ownership or control of, or operational responsibility over, any transmission system to any person without the State Corporation Commission's prior approval, following notice and hearing, and a finding that the transfer satisfies specific conditions. The Commission's rules and regulations under which an incumbent electric utility may transfer control, ownership or responsibility to a regional transmission entity are amended to eliminate the condition that they be consistent with ensuring the successful development of interstate regional transmission entities. New conditions require that transfers be consistent with (i) ensuring that consumers' needs for economic and reliable transmission are met and (ii) meeting the transmission needs of electric generation suppliers that do not own, operate, control or have an entitlement to transmission capacity. In addition, requests for approval of transfers shall include a study of their comparative costs and benefits, including an analysis of the economic effects of the transfer on consumers, including the effects of transmission congestion costs. If a proposed transfer does not satisfy a condition for approval, the Commission may require that the transmission system be upgraded prior to approving the transfer.