LOCAL GOVERNMENT CODE

CHAPTER 304. ENERGY AGGREGATION MEASURES FOR LOCAL GOVERNMENTS


	§ 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, § 42, eff. Sept. 1, 1999.  
Renumbered from § 303.001 by Acts 2001, 77th Leg., ch. 1420, § 
21.001(87), eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., 
ch. 201, § 58, eff. Sept. 1, 2003;  Acts 2003, 78th Leg., ch. 680, 
§ 2, eff. June 20, 2003.


	§ 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, § 42, eff. Sept. 1, 1999.  
Renumbered from § 303.002 by Acts 2001, 77th Leg., ch. 1420, § 
21.001(87), eff. Sept. 1, 2001.