CHAPTER 304. ENERGY AGGREGATION MEASURES FOR LOCAL GOVERNMENTS

LOCAL GOVERNMENT CODE

TITLE 9. PUBLIC BUILDINGS AND GROUNDS

SUBTITLE C. PUBLIC BUILDING PROVISIONS APPLYING TO MORE THAN ONE

TYPE OF LOCAL GOVERNMENT

CHAPTER 304. ENERGY AGGREGATION MEASURES FOR LOCAL GOVERNMENTS

Sec. 304.001. AGGREGATION BY POLITICAL SUBDIVISIONS. (a) In

this chapter, "political subdivision" means a county,

municipality, school district, hospital district, or any other

political subdivision receiving electric service from an entity

that has implemented customer choice, as defined in Section

31.002, Utilities Code.

(b) A political subdivision may join with another political

subdivision or subdivisions to form a political subdivision

corporation or corporations to act as an agent to negotiate the

purchase of electricity, or to likewise aid or act on behalf of

the political subdivisions for which the corporation is created,

with respect to their own electricity use for their respective

public facilities.

(c) The articles of incorporation and the bylaws of a political

subdivision corporation must be approved by ordinance,

resolution, or order adopted by the governing body of each

political subdivision for which the corporation is created.

(d) A political subdivision corporation may negotiate on behalf

of its incorporating political subdivisions for the purchase of

electricity, make contracts for the purchase of electricity,

purchase electricity, and take any other action necessary to

purchase electricity for use in the public facilities of the

political subdivision or subdivisions represented by the

political subdivision corporation. In this subsection,

"electricity" means electric energy, capacity, energy services,

ancillary services, or other electric services for retail or

wholesale consumption by the political subdivisions.

(e) A political subdivision corporation may recover the expenses

of the political subdivision corporation through the assessment

of dues to the incorporating political subdivisions or through an

aggregation fee charged per kilowatt hour, or a combination of

both.

(f) A political subdivision corporation may appear on behalf of

its incorporating political subdivisions before the Public

Utility Commission of Texas, the Railroad Commission of Texas,

the Texas Natural Resource Conservation Commission, any other

governmental agency or regulatory authority, the Texas

Legislature, and the courts.

(g) A political subdivision corporation has the powers of a

corporation created and incorporated pursuant to the provisions

of the Texas Non-Profit Corporation Act (Article 1396-1.01 et

seq., Vernon's Texas Civil Statutes) and such other powers as

specified in Section 39.3545, Utilities Code.

(h) The provisions of the Texas Non-Profit Corporation Act

(Article 1396-1.01 et seq., Vernon's Texas Civil Statutes)

relating to powers, standards of conduct, and interests in

contracts apply to the directors and officers of a political

subdivision corporation.

(i) A member of the board of directors of a political

subdivision corporation:

(1) is not a public official by virtue of that position; and

(2) unless otherwise ineligible, may be elected to serve as an

official of a political subdivision or be employed by a political

subdivision.

Added by Acts 1999, 76th Leg., ch. 405, Sec. 42, eff. Sept. 1,

1999. Renumbered from Sec. 303.001 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(87), eff. Sept. 1, 2001. Amended by Acts 2003,

78th Leg., ch. 201, Sec. 58, eff. Sept. 1, 2003; Acts 2003, 78th

Leg., ch. 680, Sec. 2, eff. June 20, 2003.

Sec. 304.002. AGGREGATION BY POLITICAL SUBDIVISION FOR CITIZENS.

(a) A political subdivision aggregator may negotiate for the

purchase of electricity and energy services on behalf of the

citizens of the political subdivision. The citizens must

affirmatively request to be included in the aggregation services

by the political subdivision aggregator.

(b) A political subdivision may contract with a third party or

another aggregator to administer the aggregation of electricity

and energy services purchased under Subsection (a).

(c) The political subdivision aggregator may use any mailing

from the subdivision to invite participation by its citizens.

Added by Acts 1999, 76th Leg., ch. 405, Sec. 42, eff. Sept. 1,

1999. Renumbered from Sec. 303.002 by Acts 2001, 77th Leg., ch.

1420, Sec. 21.001(87), eff. Sept. 1, 2001.