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Chapter 39

Restructuring of Electric Utility Industry

Subchapter A. General Provisions

39.001 Legislative Policy and Purpose 39.002 Applicability 39.003 Contested Cases 39.004 Hiring Assistance for Regional Proceedings

Subchapter B. Transition to Competitive Retail Electric Market

39.051 Unbundling 39.052 Freeze on Existing Retail Base Rate Tariffs 39.053 Cost Recovery Adjustments 39.054 Retail Electric Service During Freeze Period 39.055 Force Majeure

Subchapter C. Retail Competition

39.101 Customer Safeguards 39.102 Retail Customer Choice 39.1025 Limitations on Telephone Solicitation 39.103 Commission Authority to Delay Competition and Set New Rates 39.104 Customer Choice Pilot Projects 39.105 Limitation on Sale of Electricity 39.106 Provider of Last Resort 39.107 Metering and Billing Services 39.108 Contractual Obligations 39.109 New Owner or Successor 39.110 Wholesale Indexed Products Prohibited 39.112 Notice of Expiration and Price Change 39.113 Rate Transparency

Subchapter D. Market Structure

39.151 Essential Organizations 39.1511 Public Meetings of the Governing Body of an Independent Organization 39.1512 Disclosure of Interest in Matter Before Independent Organization's Governing Body; Participation in Decision 39.1513 Ercot Board Selection Committee 39.1514 Commission Directives to Independent Organization 39.1515 Wholesale Electric Market Monitor 39.1516 Cybersecurity Monitor 39.152 Qualifying Power Regions 39.153 Capacity Auction 39.154 Limitation of Ownership of Installed Capacity 39.155 Commission Assessment of Market Power 39.156 Market Power Mitigation Plan 39.157 Commission Authority to Address Market Power 39.158 Mergers and Consolidations 39.159 Power Region Reliability and Dispatchable Generation 39.1591 Report on Dispatchable and Non-Dispatchable Generation Facilities 39.1592 Generation Reliability Requirements 39.1593 Cost Allocation of Reliability Services 39.1594 Reliability Program 39.1595 Grid Reliability Legislative Oversight Committee 39.160 Wholesale Pricing Procedures 39.161 Charges for Certain Market Participants 39.162 Default of Market Participant 39.163 Amounts Owed to Independent Organization by Market Participants 39.164 Audit of Independent Organization Certified for Ercot Power Region 39.165 Grid Reliability Assessment 39.166 Reliability Plan for Regions with Rapid Electrical Load Growth 39.1675 Electric Industry Report 39.1678 Conflicts of Interest Report 39.168 Retail Sales Report 39.169 Co-Location of Large Load Customer with Existing Generation Resource 39.170 Large Load Demand Management Service

Subchapter E. Price Regulation After Competition

39.201 Cost of Service Tariffs and Charges 39.202 Price to Beat 39.203 Transmission and Distribution Service 39.204 Tariffs for Open Access 39.205 Regulation of Costs Following Freeze Period 39.206 Nuclear Generating Unit Decommissioning Cost Plan

Subchapter F. Recovery of Stranded Costs Through Competition Transition Charge

39.251 Definitions 39.252 Right to Recover Stranded Costs 39.253 Allocation of Stranded Costs 39.254 Use of Revenues for Utilities with Stranded Costs 39.255 Use of Revenues for Utilities with No Stranded Costs 39.256 Option to Redirect Depreciation 39.257 Annual Report 39.258 Annual Report: Determination of Annual Costs 39.259 Annual Report: Determination of Invested Capital 39.260 Use of Generally Accepted Accounting Principles 39.261 Review of Annual Report 39.262 True-Up Proceeding 39.263 Stranded Cost Recovery of Environmental Cleanup Costs 39.264 Emissions Reductions of "grandfathered Facilities" 39.265 Rights Not Affected

Subchapter G. Securitization

39.301 Purpose 39.302 Definitions 39.303 Financing Orders; Terms 39.304 Property Rights 39.305 No Setoff 39.306 No Bypass 39.307 True-Up 39.308 True Sale 39.309 Security Interests; Assignment; Commingling; Default 39.310 Pledge of State 39.311 Tax Exemption 39.312 Not Public Utility 39.313 Severability

Subchapter H. Certification and Registration; Penalties

39.351 Registration of Power Generation Companies 39.3515 Aggregate Distributed Energy Resources 39.352 Certification of Retail Electric Providers 39.353 Registration of Aggregators 39.3535 Military Bases Aggregators 39.354 Registration of Municipal Aggregators 39.3545 Registration of Political Subdivision Aggregators 39.355 Registration of Power Marketers 39.3555 Registration of Brokers 39.356 Revocation of Certification 39.357 Administrative Penalty 39.358 Local Registration of Retail Electric Provider 39.359 Bill Payment Assistance for Burned Veterans 39.360 Transactions with Certain Foreign-Owned Companies in Connection with Critical Infrastructure 39.361 Large Flexible Load Registration

Subchapter I. Provisions for Certain Non-Ercot Utilities

39.401 Applicability 39.402 Regulation of Utility and Transition to Competition 39.407 Customer Choice and Relevant Market and Related Matters 39.408 Hiring Assistance for Federal Proceedings 39.409 Recoupment of Transition to Competition Costs 39.410 Contractual Obligations

Subchapter J. Transition to Competition in Certain Non-Ercot Areas

39.451 Applicability 39.452 Regulation of Utility and Transition to Competition 39.4525 Hiring Assistance for Federal Proceedings 39.453 Customer Choice and Relevant Market and Related Matters 39.454 Recoupment of Transition to Competition Costs 39.455 Recovery of Incremental Capacity Costs 39.456 Franchise Agreements 39.457 Contractual Rights 39.458 Recovery and Securitization of Hurricane Reconstruction Costs; Purpose 39.459 Hurricane Reconstruction Costs 39.460 Standards and Procedures Governing Securitization of Hurricane Reconstruction Costs 39.461 Nonbypassable Charges 39.462 Determination of Hurricane Reconstruction Costs 39.463 Severability

Subchapter K. Transition to Competition for Certain Areas Outside of Ercot

39.501 Applicability 39.502 Cost-of-Service Regulation 39.5021 Metering 39.503 Transition to Competition 39.504 Hiring Assistance for Federal Proceedings

Subchapter L. Transition to Competition and Other Provisions for Certain Areas Outside of Ercot

39.551 Applicability 39.552 Cost-of-Service Regulation 39.5521 Metering 39.553 Transition to Competition 39.554 Interconnection of Distributed Renewable Generation 39.555 Marketing of Energy Efficiency and Renewable Energy Programs

Subchapter M. Winter Storm Uri Default Balance Financing

39.601 Purpose 39.602 Definitions 39.603 Debt Obligation Order 39.604 Commission-Authorized Financing 39.605 Default Charges Nonbypassable 39.606 True-Up Mechanism 39.607 Tax Exemption 39.608 Property Rights 39.609 Pledge of State

Subchapter N. Winter Storm Uri Uplift Financing

39.651 Purpose; Use of Proceeds 39.652 Definitions 39.653 Debt Obligation Order 39.654 Commission-Authorized Financing 39.655 Other Financial Mechanism 39.656 Uplift Charges Nonbypassable 39.657 True-Up 39.658 Tax Exemption 39.659 Severability 39.660 Customer Charges 39.661 Enforcement 39.662 Property Rights 39.663 Pledge of State 39.664 Legal Actions Involving Pricing or Uplift Actions

Subchapter Z. Miscellaneous Provisions

39.9016 Nuclear Safety Fee 39.902 Customer Education 39.9025 Home Electric Energy Reports 39.903 System Benefit Fund 39.9044 Goal for Natural Gas 39.9048 Natural Gas Fuel 39.905 Goal for Energy Efficiency 39.9051 Energy Efficiency for Municipally Owned Utilities 39.9052 Energy Efficiency for Electric Cooperatives 39.9054 Energy Efficiency Plans and Reports; Public Information 39.9055 Examination of Demand Response Potential of Seawater Desalination Projects 39.906 Displaced Workers 39.908 Effect of Sunset Provision 39.909 Plan and Report of Workforce Diversity and Other Business Practices 39.910 Incentive Program and Goal for Energy Efficiency for Military Bases 39.911 Alternative Funding for Energy Efficiency and Renewable Energy Systems 39.9111 Rules Related to Renewable Power Facilities 39.9112 Report on Transmission and Generation Capacity 39.9113 Renewable Energy Credits 39.912 Report on Combined Heating and Power Technology 39.913 Combining Certain Reports 39.914 Credit for Surplus Solar Generation by Public Schools 39.915 Consideration and Approval of Certain Transactions 39.916 Interconnection of Distributed Renewable Generation 39.9165 Distributed Generation Facility Reporting 39.917 Texas Electric Grid Security Council 39.918 Utility Facilities for Power Restoration After Significant Power Outage 39.919 Average Total Residential Load Reduction Goals