SUBCHAPTER B. EXEMPT WHOLESALE GENERATORS AND
POWER MARKETERS

Sec. 35.031.  AUTHORITY TO OPERATE.

An exempt wholesale generator or power marketer may sell electric energy only at wholesale.

(V.A.C.S. Art. 1446c-0, Sec. 2.053(a).)

Sec. 35.032.  COMMISSION REGISTRATION AND REQUIRED REPORTS.

(a) An exempt wholesale generator or power marketer that sells electric energy in this state shall, not later than the 30th day after the date it becomes subject to this section:

(1) register with the commission; or

(2) provide to the commission proof that it has registered with the Federal Energy Regulatory Commission or has been authorized by the Federal Energy Regulatory Commission to sell electric energy at market-based rates.

(b) The exempt wholesale generator or power marketer may register by filing with the commission:

(1) a description of the location of any facility used to provide service;

(2) a description of the type of service provided;

(3) a copy of any information filed with the Federal Energy Regulatory Commission in connection with registration with that commission; and

(4) other information required by commission rule.

(c) An exempt wholesale generator or power marketer required to register under Subsection (a) shall file any report required by commission rule.

(V.A.C.S. Art. 1446c-0, Secs. 2.053(b), (c).)

Sec. 35.033.  AFFILIATE WHOLESALE PROVIDER.

An affiliate of an electric utility may be an exempt wholesale generator or power marketer and may sell electric energy to its affiliated electric utility in accordance with laws governing wholesale sales of electric energy.

(V.A.C.S. Art. 1446c-0, Sec. 2.054(a).) (1999 Amendments: SB 7,  19)

Sec. 35.034.  TRANSFER OF ASSETS.

(a) Unless an electric utility receives commission approval under Subsection (b), the utility may not sell or transfer a facility to an affiliate or otherwise consider the facility to be an eligible facility as defined by federal law if on May 27, 1995, the utility had a rate or charge in effect:

(1) for or in connection with the construction of the facility;

(2) for electric energy produced by the construction of the facility; or

(3) for electric energy produced by the facility other than a portion of a rate or charge that represents recovery of the cost of a wholesale rate or charge.

(b) The commission, after notice and hearing, may allow an electric utility to sell or transfer a facility governed by Subsection (a) to an affiliate or otherwise allow the facility to become an eligible facility only if the transaction:

(1) will benefit ratepayers of the utility making the sale or transfer;

(2) is in the public interest; and

(3) otherwise complies with state law.

(c) For purposes of this section, "electric utility" does not include a river authority.

(V.A.C.S. Art. 1446c-0, Sec. 2.054(b).) (1999 Amendments: SB 7,  20)

Sec. 35.035.  VALUATION AND ACCOUNTING OF TRANSFERRED ASSETS.

(a) A transfer of assets from an electric utility to an affiliated exempt wholesale generator or power marketer shall be valued at the greater of net book cost or fair market value.

(b) A transfer of assets from an exempt wholesale generator or power marketer to an affiliated electric utility shall be valued at the lesser of net book cost or fair market value.

(c) At the time that a transfer of assets between an electric utility and an affiliated exempt wholesale generator or power marketer is approved, the commission shall order the utility to adjust its rates so that the utility's tariffs reflect benefits from the proceeds of the sale and exclude any costs associated with the transferred facility.

(d) For purposes of this section, "electric utility" does not include a river authority.

(V.A.C.S. Art. 1446c-0, Sec. 2.054(c).) (1999 Amendments: SB 7,  21)