Texas Statutes
Subchapter B. Exemptions From Commission Jurisdiction
Section 32.053. Ability of Certain River Authority Affiliates to Construct Improvements

Sec. 32.053. ABILITY OF CERTAIN RIVER AUTHORITY AFFILIATES TO CONSTRUCT IMPROVEMENTS. (a) This section applies only to a corporation that:
(1) sells electricity exclusively at wholesale, and not to ultimate consumers;
(2) is authorized by Chapter 152, Water Code; and
(3) acts on behalf of a river authority.
(b) Notwithstanding a river authority's enabling legislation or Chapter 152, Water Code, a corporation may:
(1) acquire, finance, construct, rebuild, repower, operate, or sell a facility directly related to the generation of electricity;
(2) sell, at wholesale only, the output of the facility to a purchaser, other than an ultimate consumer, at any location in this state; and
(3) purchase and sell electricity, at wholesale only, to a purchaser, other than an ultimate consumer, at any location in this state.
(c) This subchapter does not prevent a corporation from purchasing transmission and related services from a river authority.
(d) Except as provided by this section, the development, financing, ownership, and operation of a facility by a corporation is subject to all other applicable laws.
(e) The property, gross receipts, and income of a corporation acting on behalf of a river authority under this section are subject to, and the corporation shall pay, taxes and assessments of the federal government, this state, a political subdivision of this state, or a taxing district of this state on the same basis as an exempt wholesale generator.
(f) The proceeds from the sale of bonds or other obligations the interest on which is exempt from taxation and that are issued by a corporation or river authority subject to this section, other than a bond or obligation available to an investor-owned utility or exempt wholesale generator, may not be used by the corporation to finance the construction or acquisition of or the rebuilding or repowering of a facility for the generation of electricity by the corporation.
(g) Notwithstanding any other law, the board of directors of a river authority may sell, lease, loan, or otherwise transfer some, all, or substantially all of the electric generation property of the river authority to a nonprofit corporation authorized under this section or Chapter 152, Water Code. The property transfer shall be made under terms and conditions approved by the board of directors of the river authority.
(h) Subsections (a)-(f) do not apply to a corporation created under Chapter 152, Water Code, to serve an area described in Section 32.052.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997. Amended by Acts 1999, 76th Leg., ch. 405, Sec. 14, eff. Sept. 1, 1999; Acts 2001, 77th Leg., ch. 1420, Sec. 8.400, eff. Sept. 1, 2001.

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