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Relating to certificates of convenience and necessity for the construction of transmission facilities.
No significant fiscal implication to the State is anticipated.
SB 1938 would make changes to the Utilities Code to codify in statute which entities are responsible or certified to construct utility extensions. Specifically, it provides that a certificate to build, own, or operate a new transmission facility that directly interconnects with an existing electric utility facility may be granted only to the owner of that existing facility. If a new transmission facility will directly interconnect with facilities owned by different utilities, each entity must be certified to build, own, or operate the new facility in separate and discrete equal parts unless they agree otherwise.
Effectively, this bill will mute what little competition exists in the power transmission market by codifying a process that only benefits incumbent utilities at the expense of new entrants in the market.
Texas Action opposes SB 1938 because the bill violates the principles of limited government and free markets by codifying policies that stifle competition and confer benefits to incumbent entities at the expense of new entrants into the market.