Sec. 35.034.  TRANSFER OF ASSETS.  (a)  Unless an electric utility receives commission approval under Subsection (b), the utility may not sell or transfer a facility to an affiliate or otherwise consider the facility to be an eligible facility as defined by federal law if on May 27, 1995, the utility had a rate or charge in effect:
(1)  for or in connection with the construction of the facility;
(2)  for electric energy produced by the construction of the facility;  or
(3)  for electric energy produced by the facility other than a portion of a rate or charge that represents recovery of the cost of a wholesale rate or charge.
(b)  The commission, after notice and hearing, may allow an electric utility to sell or transfer a facility governed by Subsection (a) to an affiliate or otherwise allow the facility to become an eligible facility only if the transaction:
(1)  will benefit ratepayers of the utility making the sale or transfer;
(2)  is in the public interest;  and
(3)  otherwise complies with state law.
(c)  For purposes of this section, "electric utility" does not include a river authority.
Acts 1997, 75th Leg., ch. 166, Sec. 1, eff. Sept. 1, 1997.  Amended by Acts 1999, 76th Leg., ch. 405, Sec. 20, eff. Sept. 1, 1999.